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No point in having good Credit Rating - I'm going to deafault !!
Comments
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There's nothing that forces you to refinance. The underwriters know that you could take the money, pay off the other card then spend the money on the newly cleared other card.
The HSBC consolidation loan isn't a bad idea. It'll cause you to have lower outstanding credit and lower monthly repayments and that should make you score better. Wait six months and you should have a decent chance of getting a 0% for spending card that you can put some bills on, overpaying on the HSBC loan with the money you spend on bills.0 -
This has nothing to do with your credit rating.: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?
You have a £6K credit card bill when you only earn £15K. No offence, but that CC debt is huge for someone on such a low salary.
If you took anymore credit, the banks appear to think you would struggle to service the debt on a salary of only around £1K per month. (and i actually agree with the).
Alot of prime lenders will only finance you to 40% of your income......you are already there (just about)0 -
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.
It is a simple formula - High Credit Commitments + Poor Salary = NO MORE CREDIT
Read this again and you will realise it isn't the underwriters that are being dumb.
The banking system is in a mess because of stupid people borrowing way beyond theirs means and the banks letting them do it.
Sound familiar at all.........listen to what people are telling you.0 -
You have a £6K credit card bill when you only earn £15K. No offence, but that CC debt is huge for someone on such a low salary.It is a simple formula - High Credit Commitments + Poor Salary = NO MORE CREDIT
Read this again and you will realise it isn't the underwriters that are being dumb.
The banking system is in a mess because of stupid people borrowing way beyond theirs means and the banks letting them do it.
Sound familiar at all.........listen to what people are telling you !!!!!!
Spot on
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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.
Since transferring to a new credit card is not an option (as you have been unable to get a new credit card) then the HSBC loan seems like a good deal to me.
It is a lower rate of interest than you are currently paying. Sure, you will lose the credit card, but since it is maxed out, and your plan was to re-finance the debt, and NOT to seek extra borrowing capacity, the end result is the same.
The loan would put a lid on your borrowing and give you space and structure to pay your debts down.
Moving the debt around is only a short term fix - it isn't a long term plan, you need to find a way of paying it off.I'm a retired employment solicitor. Hopefully some of my comments might be useful, but they are only my opinion and not intended as legal advice.0 -
It is a simple formula - High Credit Commitments + Poor Salary = NO MORE CREDIT
Read this again and you will realise it isn't the underwriters that are being dumb.
The banking system is in a mess because of stupid people borrowing way beyond theirs means and the banks letting them do it.
Sound familiar at all.........listen to what people are telling you.
Erm hate to point this out to you but it was HSBC who gave me the credit in full knowledge of my salary! Infact they upped it from 2k to 6k without asking, idiot.0 -
Erm hate to point this out to you but it was HSBC who gave me the credit in full knowledge of my salary! Infact they upped it from 2k to 6k without asking, idiot.
But they didn't force you to run it up to the 6k limit.
You've now ran it up to the 6k limit and it's deterring others from offering you another card.
You know that you want it for a balance transfer, but when you apply for a card, even if you fill in the details for a BT, there's no guarantee that you will cancel the other card once the BT goes through.
If you've not already, then you should write a letter of appeal against the recent rejection and see what happens. You might have to "cancel" the HSBC card which will prevent you from using it and provide written evidence of this with your appeal. But to be honest, you're not in a strong position and you will be seen as a risk."A child of five could understand this. Fetch me a child of five." - Groucho Marx0 -
Erm hate to point this out to you but it was HSBC who gave me the credit in full knowledge of my salary! Infact they upped it from 2k to 6k without asking, idiot.
Yes and obviously they insisted you spend all of it plus your overdraft. Calling people names is very immature, just because you don't want to admit that YOU have been foolish with the lenders money.
As I said earlier perhaps if you do a budget and try paying some of your debt back you might get more sympathy. Calling people idots and suggesting that underwriters don't have common sense is almost as stupid as running up the debt in the first place.0 -
By running your card upto the limit you're showing that you can't be responsible with money, just because it's there it doesnt mean you have to spend it0
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