No point in having good Credit Rating - I'm going to deafault !!

NoNoDrama

:mad::mad:

I have a perfect credit rating in the sense I have 6 years of green 0's. I have an HSBC Credit Card maxed at 6k they keep upping the interest rate and currently 21% :eek:

My salary is £15k I'm trying to refinance this debt but have been rejected by Virgin, HBOS group (both 6 months ago) this time I have tried Sygma who have rejceted two applications (for 2 different cards) and Capital One have rejeceted me for there 19.9% card (both lower end sub-prime)!

What's the point in having a good credit rating if I can't refinance this debt?

Is anyone else in this position? Surely defaulting and not paying back would be the best option here instead of being ripped of by HSBC. I know this would affect my credit rating but I can't get credit anywhere anyway! Maybe it's a con by the banks to hike up interest rates but restrict lending to new customers?

Tixy

Sounds like you have reached the maximum debt to income ratio that lenders are prepared to go to. What other open credit accounts do you have?

Lenders are very selective now about who they lend to and at that level of salary you are likely not to be able to get much further credit. Even if you got another card it would likely be for only a £1k limit or so.

Do you have an overdraft? do you use it?

If you default you wreck any chance of getting decent credit for 6years. Not to mention risk being taken to court. Whereas if you focusing on getting the debt down paying off as much as you can then you may have an opportunity to move it in a year or so.

Next time the up the interest rate you could always consider opting out.

_Andy_

How exactly are HSBC 'ripping you off'?
You racked up the debt on what you knew was a variable rate credit agreement. Oh of course, they forced you to spend that money didn't they.

ILW

I think the term "maxed out" is probably affecting your ability to get further credit. You need to be paying down the card.

NoNoDrama

I have an overdraft of £1500 (also with HSBC) always in it but never defaulted ... no other loans or credit.... why aren't even the sub-prime accepting me?

When I say maxed out it nearly is but it hasn't touched the limit yet. is it distinguishable on my credit report from being close to my limit and "being maxed" out?

Tixy

So you have £7500 of available credit and earn £15k, 50% credit to income is about the max people can get these days.

Plus people who are always in their overdrafts are often considered by lenders to not be handling their credit responsibly.

Best way to reduce the interest is to work out what you can cut back on elsewhere so you can pay more off your debts each month (and stop spending on the card of course).

iamana1ias

Stop applying for cards! All those credit checks aren't doing you any favours!

drbesty

You've maxed out a £6k card, why would anyone give you the opertunity to get into even more debt, if you got another card you'd eventually end up with two maxed out cards, instead focus on paying you debt down as fast as possible

NoNoDrama

I'm refinancing the debt, not wanting to have two cards with big limits!! Many applications ask if you're wanting to balance transfer and how much!!

If people are able to borrow 50% of the debt I should be able to get at least a large portion of that offered with an all green credit rating? Surely green zero's should take precedence over salary? No wonder the bank system is in a mess with these dumb underwriters.

no_more_cards_for_me

NoNoDrama wrote: »

I have an HSBC Credit Card maxed at 6k they keep upping the interest rate and currently 21%

My salary is £15k I'm trying to refinance this debt but have been rejected by Virgin, HBOS group (both 6 months ago) this time I have tried Sygma who have rejceted two applications (for 2 different cards) and Capital One have rejeceted me for there 19.9% card (both lower end sub-prime)!

What's the point in having a good credit rating if I can't refinance this debt?

Is anyone else in this position? Surely defaulting and not paying back would be the best option here instead of being ripped of by HSBC. I know this would affect my credit rating but I can't get credit anywhere anyway! Maybe it's a con by the banks to hike up interest rates but restrict lending to new customers?

NoNoDrama wrote: »

I have an overdraft of £1500 (also with HSBC) always in it but never defaulted ... no other loans or credit.... why aren't even the sub-prime accepting me?

When I say maxed out it nearly is but it hasn't touched the limit yet. is it distinguishable on my credit report from being close to my limit and "being maxed" out?

NoNoDrama wrote: »

I'm refinancing the debt, not wanting to have two cards with big limits!! Many applications ask if you're wanting to balance transfer and how much!!

If people are able to borrow 50% of the debt I should be able to get at least a large portion of that offered with an all green credit rating? ? No wonder the bank system is in a mess with these dumb underwriters.

So you maxed out your card, don't want to take responsibility for your borrowing and can't refinance because you are already financially overcommitted.

Bank system isn't in a mess, its adopting sensible limits. The reason your being declined is that lenders consider you to be fully committed. On your salary that's about the right level of lending.

Perhaps you should try to pay down some of your debt before trying to get more cards - do you really need them ?
Or do you want to continue to live beyond your means ?
You have nearly £6k on the card and are using the £1500 overdraft on a regular basis. That sound like your living well beyond your means.

Have you thought about how long this will take you to pay back ?

Perhaps if you learnt to spell then you might be able to get a better job.

NoNoDrama

Again, I repeat, the card would be for refinance purposes! So my exposure wouldn't be any more than it is now. I currently pay 21% interest rate on my CC. I would be transferring the balance out to one with a lower rate, thus enabling me to pay the balance off quicker.This would benefit me and the new lender , if common sense was applied by the underwriters.

HSBC did offer me a consolidation loan 7500 at 15.9% APR they would close my CC and reduce my o/draft to 300 plus no further lending for 6 months. I didnt take this up as the APR is a bit of a p!ss-take for some one with a clean credit fie. Plus transferring the balance to another card would give me more flexibility and a better rate on the APR for the BT.