M&S declined

joewa

Hi, i applied for the above credit card but was declined.I have never had any defaults on my accounts etc.I think i may know what the answer is :

Salary £44000 PA

Mortgage £39500 Owed £690 per month
Tasco Loan : £8000,owed £600 per month
BOS Credit card : £4750 owed £100 per month
Santander credit card £1200 owed £200 per month

Is it because of all the credit i have, i have also applied for Tesco credit card due to being declined but no doubt i will be declined for that also

[Deleted User]

You've certainly got a lot of debt. And the other problem may be the amount of available credit will be even higher - assuming the cards aren't maxed out. And if they are maxed out, then you'll look very stressed - ie spending every penny of all credit you have available.

You'll probably need to work on reducing balances and then perhaps also limits. Is everything else ok on your credit reports? (address, associations, old debts, etc)

GAH

I don't think there is any clear rules on how credit is being lent at the moment, but one sure thing is if you have been declined a card, do not apply for another one straight away, it is only going to make a mark on your credit.

joewa

do they take your mortgage into account. im going to close the Santander in the next three months
Do you think waiting 6 months before i apply would be ok

Dabooka

Bearing in mind it's hard to be 100% certain, it is possible that your exposure to credit vs your income is too high. Other factors also have an impact of course, but the ratio of debt to income is very important.

What are your limits? Any late payments or anything? And I assume you are on the electoral roll?

CreditCruncher

I came across posts from other forum users where they have been declined;barclaycard overturned their decision,where the refusal was due to minor reasons like wrong address etc.,when they rang up barclaycard and queried the reason.

Perhaps worth a call to barclaycard?

joewa

on electoral roll,no late payments.
Loan only three monts old. BOS card at limit, Sanatander £3500 available (but im going to close it)

Tixy

joewa wrote: »

do they take your mortgage into account. im going to close the Santander in the next three months
Do you think waiting 6 months before i apply would be ok

Your mortgage is taken into account when assessing the overall affordability, but not to such an extent of unsecured credit. Excluding your mortgage you are running at £14k debt which is not that high compared to your income level (30%) - its not that low either but there are cases of people being accepted for new credit on those sort of levels.

[Deleted User]

Why were you after the M&S card? Is it for a BT offer? If so, maybe there's another way...

What are the rates on your two cards? Would it hurt much to move the BoS balance to Santander? The reason I ask is that Halifax give me regular BT offers (I'm generally at zero balance). You MAY get an offer from them to shift debt back once it's clear.

But this is a reasonably high risk strategy. Main cons -

You'll pay a BT fee to move it to Santander
Halifax may not give you an offer
If the Santander rate is higher than BoS, you'll need to pay another fee to move it back to BoS.
BoS may close your card as soon as you get to zero.

But it's a thought, depending on what you're looking to achieve. But I'm not actively recommending it. but it shows the potential benefits of having a spare card.

horngkai

sorry for hijacking this thread, have a question to ask.

Would a hire purchase for a car considered as an unsecured or secured loan? Are they taken into account when calculating available credit?