0% ended and cant get any credit...HELP!!!

zen200

Hi All,

I have been using this site for a while but only just officially joined up.

Anyway, I have a major issue which I need some advice on. I will try to keep it brief.

I have always had a good/very good credit rating and for the past 2 years have been using 0% credit cards from Virgin and MBNA. The MBNA card's 0% was coming to an end in March so I applied for a 0% card as usual. To my horror I got turned down. So I applied for others, and again have been turned down. I then joined experian and equifax to check things out and my own bank (HSBC) had put a default on my account in Sept 09 for not paying them £112 for my overdraft that I still use to this day. This was not correct, so I called HSBC and they have a complaint going through as we speak. Since my initial contact with them, I have check experian and equifax again and they have updated things to show no missed payments or defaults. Therefore, I applied for credit again with Virgin and have been declined again.

HSBC have writen to me twice to say that they will write to me again by 10 May, but at that time I will already be paying 2%+ monthy interest on a balance of 7K or more. I have made HSBC and the financial ombudsman aware that this will be the case, but HSBC have said that they have 8 weeks to reply in full.

I am on voters role at current address, but have lived here for only 11 months, but why am I still getting turned down for credit if the equifax and experian are upto date and showing no missed or late payments and no other adverse details. ?

I just dont get it... I cant afford to pay £150 per month on interest....

Please help

Thanks in advance

Phil

CLAPTON

how many credit applications have you made?
how much do you owe
how much do you earn
is your overdraft regularly used

BLT_2

zen200 wrote: »

Hi All,

I have been using this site for a while but only just officially joined up.

Anyway, I have a major issue which I need some advice on. I will try to keep it brief.

I have always had a good/very good credit rating and for the past 2 years have been using 0% credit cards from Virgin and MBNA. The MBNA card's 0% was coming to an end in March so I applied for a 0% card as usual. To my horror I got turned down. So I applied for others, and again have been turned down. I then joined experian and equifax to check things out and my own bank (HSBC) had put a default on my account in Sept 09 for not paying them £112 for my overdraft that I still use to this day. This was not correct, so I called HSBC and they have a complaint going through as we speak. Since my initial contact with them, I have check experian and equifax again and they have updated things to show no missed payments or defaults. Therefore, I applied for credit again with Virgin and have been declined again.

HSBC have writen to me twice to say that they will write to me again by 10 May, but at that time I will already be paying 2%+ monthy interest on a balance of 7K or more. I have made HSBC and the financial ombudsman aware that this will be the case, but HSBC have said that they have 8 weeks to reply in full.

I am on voters role at current address, but have lived here for only 11 months, but why am I still getting turned down for credit if the equifax and experian are upto date and showing no missed or late payments and no other adverse details. ?

I just dont get it... I cant afford to pay £150 per month on interest....

Please help

Thanks in advance

Phil

I am afraid the news is not good here, companies are not beholden to grant you 0% finance on credit cards regardless of your credit rating. You admit that you have been rolling over the credit card from one to another, that you have a large overdraft you are using, so in essence what you are asking is for companies to expose themselves to circa 17k of debt (old credit card + overdraft + new credit card), regardless of your statement that you intend to transfer the debt there is no guarantee this will actually take place.

It appears that you may already have been rate hiked judging by the 2%+ you are paying. Arguing to the credit company that you need a quick response otherwise you will have to pay interest you can't afford is somewhat counter productive, it is a tacit admission that you are in financial difficulties and they may even look to reducing your limit or closing your account.

I am not quite sure why the ombudsman is involved here. Your bank have removed the default notices as required, there is no evidence that you would have received credit cards even if that had not been on there, and subsequently you have been rejected in any case. (Experian and Equifax are tools only, all companies use their own internal scoring criteria)

In essence you are arguing that you will suffer financial hardship because you will have to pay interest on a credit card. If I may say so, its a pretty week argument, did you think you were going to pay 0% for the rest of your life? CC companies dont work like that.

chattychappy

Yep agree with comments so far. Also it could be a simple commercial decision (ie not risk related). If you've gone through various 0% cards before, perhaps they CC companies are just not interested in your business. Are you applying to a company with whom you have had a card before?

Also, have you closed down unused cards?

zen200 wrote: »

I just dont get it... I cant afford to pay £150 per month on interest....

Well, sadly, maybe they have (got it). If you're that tight perhaps that's showing up in what you put down as your income/outgoings etc.

MBNA/Virgin are good on repeat offers. If you're really stuck perhaps you can shift the balance to another card (albeit suffering another fee) in the hope that once the balance is zero they'll offer you a LOB/0% deal. Bear in mind that minimum repayments could be higher elsewhere.

justsimon

I think you are classed as a "credit tart" if you have been caught sleeping with more than a few credit cards, in a short space of time - you get classed as a tart.

Stop applying for credit cards, you are leaving more footprints in your credit file, you will look desperate and "the man" won't like it.

BLT_2

chattychappy wrote: »

Yep agree with comments so far. Also it could be a simple commercial decision (ie not risk related). If you've gone through various 0% cards before, perhaps they CC companies are just not interested in your business. Are you applying to a company with whom you have had a card before?

Also, have you closed down unused cards?



Well, sadly, maybe they have (got it). If you're that tight perhaps that's showing up in what you put down as your income/outgoings etc.

MBNA/Virgin are good on repeat offers. If you're really stuck perhaps you can shift the balance to another card (albeit suffering another fee) in the hope that once the balance is zero they'll offer you a LOB/0% deal. Bear in mind that minimum repayments could be higher elsewhere.

Alternatively given that there is clearly no end in site for the outstanding balance (this is based on the fact that if the OP cannot afford 150 pounds per month in interest he is unlikely to be able to pay it off within 12 months), perhaps a better option would be to look for a life of balance transfer card. This way you would only pay 0.556% per month, with equates to 40 pounds per month interest.

However as Chatty Chappy says, check on the minimum payments. Barclaycard require 2% of the monthly outstanding interest if I am correct, still 150 pounds per month, but at least it wouldnt all be interest payments

ILW

zen200 wrote: »

Hi All,

I have been using this site for a while but only just officially joined up.

Anyway, I have a major issue which I need some advice on. I will try to keep it brief.

I have always had a good/very good credit rating and for the past 2 years have been using 0% credit cards from Virgin and MBNA. The MBNA card's 0% was coming to an end in March so I applied for a 0% card as usual. To my horror I got turned down. So I applied for others, and again have been turned down. I then joined experian and equifax to check things out and my own bank (HSBC) had put a default on my account in Sept 09 for not paying them £112 for my overdraft that I still use to this day. This was not correct, so I called HSBC and they have a complaint going through as we speak. Since my initial contact with them, I have check experian and equifax again and they have updated things to show no missed payments or defaults. Therefore, I applied for credit again with Virgin and have been declined again.

HSBC have writen to me twice to say that they will write to me again by 10 May, but at that time I will already be paying 2%+ monthy interest on a balance of 7K or more. I have made HSBC and the financial ombudsman aware that this will be the case, but HSBC have said that they have 8 weeks to reply in full.

I am on voters role at current address, but have lived here for only 11 months, but why am I still getting turned down for credit if the equifax and experian are upto date and showing no missed or late payments and no other adverse details. ?

I just dont get it... I cant afford to pay £150 per month on interest....

Please help

Thanks in advance

Phil

Sorry if this sounds a little harsh, but nobody has a right to interest free credit forever. If you cannot afford to pay the interest on borrowings, it was very irresponsible to run up the debt in the first place. Again sorry but that's life.

Rico6.9

Yes, it'll probably be just down to affordability. Or possibly the fact that somehow the refusal in March remains in the system.

Lucky you that HSBC removed the default!

You could try applying to a different bank for your 0%. If that fails, you'll probably have to bite the bullet for 6 months. Or, you could apply for a low APR loan or remortgage to get off the ridiculous APR

Good luck.

jonesMUFCforever

I think this is the OP's lighbulb moment - the time to actually plan paying the debt off rather than juggling it about.
I would suggest going to the debt free wanabe board - plan how much he can actually afford per month and get rid of the debt ASAP.

zen200

WOW

Thanks for all the replies, I really wasnt expecting so much feedback so quick. :T

I am planning to pay upto £500 a month 8 times a year of more. The debt mainly occured from somthing that I didnt even realise would be so much... Old tax bill.

Anyway, I had a call from HSBC today saying that they will be looking into this further and see what they can offer me to help the situation.

I will report with further info as and when I get it.

Again, thanks guys and gals.

no_more_cards_for_me

Must of been one hell of a tax bill.

Best advice- pay the debt down and avoid other cards. If you can afford to pay of £4k in the year then why not the £150 ??