Declined by MBNA

Steameh

Hi all,

I applied for the MBNA 'balance for life' credit card with hopes of transfering my loan to it. They have declined my application with the reason 'We feel that you are sufficiently committed based on your present income.'

Well yes I am sufficiently committed with my loan but the idea was to transfer my loan to this meaning I am no more commited that having my loan.

Is it worth appealing the application or are MBNA pretty much set in their ways? What would be the best was to approach this?

The annoying thing is tranfering my loan to this credit card would really help me out. Instead of the £380 I currently pay on my loan I'd be looking to pay £660 a month.

Thanks

co123456

I'd appeal. You've 'spent' a search on your credit file so why not get your moneys worth.

stephane_2

The problem for MBNA is that they have no guarantee that you'll be using the card to pay off the loan and that you could be using the credit card instead on purchases. They probably decided that your salary was too low to the amount of debt your owe. You can try appealing but your chances of success are very slim. You could try Egg Card which has the same facility of transferring fund directly to your bank account

Steameh

stephane wrote: »

The problem for MBNA is that they have no guarantee that you'll be using the card to pay off the loan and that you could be using the credit card instead on purchases. They probably decided that your salary was too low to the amount of debt your owe. You can try appealing but your chances of success are very slim. You could try Egg Card which has the same facility of transferring fund directly to your bank account

I was thinking of going for Leeds Building Society as they offer a similar 'balance for life' offer.

stephane_2

Steameh wrote: »

I was thinking of going for Leeds Building Society as they offer a similar 'balance for life' offer.

Remember that you CANNOT pay off a loan with a regular credit card, you need to have one that will allow you to transfer fund to your bank account at the 0% offer, the only cards at the moment offering that option is Virgin/MBNA or Egg.

Steameh

stephane wrote: »

Remember that you CANNOT pay off a loan with a regular credit card, you need to have one that will allow you to transfer fund to your bank account at the 0% offer, the only cards at the moment offering that option is Virgin/MBNA or Egg.

Do Leeds not offer super balance tranfers?

I already have an Egg Money card so could transfer to that and then to my current account.

stephane_2

Steameh wrote: »

Do Leeds not offer super balance tranfers?

I already have an Egg Money card so could transfer to that and then to my current account.

Yes you could transfer your balance from Egg to a new credit card, but do you still have an offer open with Egg? If not, then the interest that you'll pay are likely to be the same or even more than the loan itself. It is only worst transferring fund to your bank account when you have 0% offer for 15/16 months and that you can repay more or less all of it within that period of time. Also, what is the outstanding balance of the loan? have you ask your bank for the settlement figure? remember also that the new card will only allow you to transfer up to 90% of your credit available

Steameh

stephane wrote: »

Yes you could transfer your balance from Egg to a new credit card, but do you still have an offer open with Egg? If not, then the interest that you'll pay are likely to be the same or even more than the loan itself. It is only worst transferring fund to your bank account when you have 0% offer for 15/16 months and that you can repay more or less all of it within that period of time. Also, what is the outstanding balance of the loan? have you ask your bank for the settlement figure? remember also that the new card will only allow you to transfer up to 90% of your credit available

I mean transfer the loan amount from Leeds Building Society to Egg then to my current account to pay the loan off. That would leave the balance on the Leeds Account.

My settlement figure is £9444. I could have that paid off in 16 months no problem.

stephane_2

Steameh wrote: »

I mean transfer the loan amount from Leeds Building Society to Egg then to my current account to pay the loan off. That would leave the balance on the Leeds Account.

My settlement figure is £9444. I could have that paid off in 16 months no problem.

What is your annual income?

Steameh

stephane wrote: »

What is your annual income?

£21000 before tax.

stephane_2

Well, your chances of getting a credit card with a limit of at least £10,000 are nil. Before giving credit they will consider your financial commitment. Just with the loan you are already around 45% ratio debt to income. Even if you decide to pay off the loan, lenders have no guarantee that you will. I think you need to forget that route but instead put more towards the loan to repay it quicker.