GE Money Transformations app rejected - what now?

poggle99

Hi there,

Wondering if anyone has advice on this point....

My husband applied for a GE Money Transformations card, on the basis that every indication he's had so far is that he has an excellent credit score. His application was rejected.

We haven't yet had the letter explaining why, but in the meantime I have one or two questions:

1) Can we apply for another card in the meantime? We have basically applied for three 0% cards recently in order to cover expected debt for a new car, and hence have made the "no more than three" consecutive applications advised somewhere on this site. Even though this third one was turned down, does it still "count"?

We will definitely need something to cover the remaining balance, and would like to do it in the most "interest-efficient" way possible, so if we can still get another card rather thana loan that would be the best.

2) Does this now mean that when we get those questions on some financial products that say "have you ever been refused credit?", we need to say "yes" in future - and is that going to cause us major problems?

All advice gratefully received.

Many thanks,

Rachael

The_Boss

1. Yes - apply for a Barclaycard if the others all did Experian searches (GE would have). No if they did Experian and Equifax.

Yes, even though the last failed it still does count as that means 3 credit searches. Who were the other two you applied to?

2. Yes it does, though the only one of those I've ever come across was in a job application for Lloyds TSB.

Wouldnt worry about it - they have rejected loads of people on here with an otherwise fine credit history.

poggle99

The_Boss wrote:

Yes, even though the last failed it still does count as that means 3 credit searches. Who were the other two you applied to?

Mint and M&S Money - both were fine, the credit agreements are going in the post today.

The_Boss wrote:

Wouldnt worry about it - they have rejected loads of people on here with an otherwise fine credit history.

That's good to hear - it's the first time we've ever been rejected for anything and was a real surprise!

Cheers,

Rachael

Moggles_2

Hi Poggle99

Welcome to MSE & the credit card board!
Congratulations on your two successful applications to Marks & Spencer and Mint.

We will definitely need something to cover the remaining balance

This concerns me. There's a major drawback to making three credit card applications at once. If two or three 0% introductory rates expire together, you're faced with up to three new card applications once again. The risk in paying for your new car this way is that you can't be sure of further 0% offers in X months time when the current deals end and the interest jumps to the standard rate. Unless you will have savings to cover a possible shortfall then, I would consider a less expensive car.

Very best
M

poggle99

Moggles wrote:

The risk in paying for your new car this way is that you can't be sure of further 0% offers in X months time when the current deals end and the interest jumps to the standard rate. Unless you will have savings to cover a possible shortfall then, I would consider a less expensive car.

Hi Moggles,

Thanks for your concern! It's mainly a short-term issue. I'm currently on maternity leave and will be be back at work in January. When the introductory periods on these new cards expire, we should have repaid a significant proportion of the capital, as our overall household income will go up significantly once I return (even taking into account nursery fees).

We could have applied for a personal loan instead at this point, but our main concern is to minimise interest accrued, and maximise flexibility, over the next four months. We calulate that we can meet the minimum repayments at least until January, and should then be able to pay back more, rather than being stuck with a loan term and unable to overpay to clear the debt without incurring penalties.

We do also have some savings in reserve, but would rather take advantage of 0% credit if we can.

But if I'm missing something here - please do correct me!

Cheers,

Rachael

Moggles_2

Hi Rachael

So many post here having borrowed up to the limit on an increasing number of cards, until a new 0% balance transfer card is no longer an option.

We do also have some savings in reserve

This is the key thing. I've purchased a car myself using credit cards, but always with savings to fall back on. With forward planning, credit cards are a much better option than a loan. Providing you have savings in reserve should the 0% deals not materialise, you can't really lose.

Cheers
M
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