no credit card but yes to a personal loan

ryantcb

I have a loan with my bank been paying it as my agreement requires never missed a payment blah blah blah. i also have a vanquis card to build up my credit rating. Around 6 months into my vanquis use my credit limit went up and I though i must be doing something right. another 6 months passed and I decided to apply to my bank for a credit card (I didnt want the card or need it was more a case of see if i could get one). They declined for whatever reason. i dont mind its up to them. But a week later they said I had been approved for a £6000 increase on my personal loan. Why say no to my application for a credit card then offer me £6k extension to my loan? Have I good credit or not?

opinions4u

Different forms of credit have different risks.

Different customers have different risk profiles for different forms of credit.

Your bank like the idea of you having an agreed monthly payment. They are less keen to get involved with you having a more flexible form of credit such as a credit card.

ryantcb

opinions4u wrote: »

Different forms of credit have different risks.

Different customers have different risk profiles for different forms of credit.

Your bank like the idea of you having an agreed monthly payment. They are less keen to get involved with you having a more flexible form of credit such as a credit card.

interesting. not sure if that makes my credit worthiness good bad or indifferent.

[Deleted User]

Indifferent, I would say. You can't get a card, so not good, but you can get a loan, so not that bad.

danothy

If one were to be cynical, one might interpret it as an indicator that they don't want to issue new credit but are happy perpetuating the debt you are in with them by extending existing credit (assuming there is a distinction between those two things).

If it were me making the decision and I was cynical I might think that "hey, they are paying that, they can pay that and do, lets see how long we can keep them paying that as it makes us money" in reference to the loan, but might not think enough of you to give you a credit card.

Not that I do think that about you, I just find it safer to assume the worst when declined for a financial product.

tigerlily43

Actually, I'd say they're happy to get interest from the loan whereas there is always the possibility that the OP will clear his balance every month thereby denying the bank the opportunity to make any money

Just a thought
tigerlily

ryantcb

I guess the only true indication would be try for a credit card with a new creditor. obviously not straight away as applying for credit often has negative effects on credit score. But if the new creditor says yes then it must be my bank trying to bleed me :-)

opinions4u

Yes, it's all a conspiracy.

Nothing to do with the higher risk of a revolving credit arrangments in the hands of somebody who already has other credit agreements in place.