Do credit card applications take your 'debt' into consideration?

Danny_G

Your credit file(experian for example) has these figures

Amount of available credit- £xxxx

% of your total credit being used- x%

Amount of outstanding debt- £xxxx

when applying for a credit card, do the lenders look at them values? or the computer des?

What if you have alot of outstanding debt of your available credit + a high % of total credit being used (40%)

Can the credit card application team say- you have enough credit/funds....why do you want more? and reject for getting their credit cards?

or they are 'only' concerned about whether my credit is bad, average, good, or excellent?

How much consideration do they take on how much debt you already have?

stephane_2

Of course that one of their main consideration when giving you credit will be how much you are committed at the moment, how much credit available to you have compare to your salary, how close you are to the limit on each account and how well you've managed the repayments

izools

When you apply for credit, amongst many other things, creditors will look at:

1. How much you owe in comparison to your credit limits
2. How much you owe in comparison to your salary
3. How much exposure to credit you have

If you have:

1. Total credit limits that add up to over 50% of your salary
2. Total credit balances that add up to over 50% of your limits

Then the creditor may consider you over-committed and decline your application.

It depends on the lender and the strength of the rest of the application, unfortunately there's no way to know beforehand, just have to suck it and see

Cash_Flow

Danny G are you trying to GAME the system.:rotfl:

izools

Cash_Flow wrote: »

Danny G are you trying to GAME the system.:rotfl:

It's very doable :beer: