Nervous about applying for new credit card....

debtfreeby30_2-2

The last time I went for a debt consolidation loan with a someone other than my current bank I was turned down. I did get a small one with my bank in January, and with a recent PPI repayment and becoming a social recluse and being very careful (AND logging on to this website every day for moral support!!) I'm now in the position where I can pay my bills each month and not have a meltdown that I will have a rake of charges from things bouncing and going over my overdraft. As I'm at the minute I'm paying minimum payment on the credit card (or about a tenner over) I'm now seriously considering moving home to save on rent which I can use to pay off my credit card, and the generous loan my sister has given me. So to get to the point.......!

Obviously the most sensible thing to do would be apply for a 0% balance transfer and try and get it paid off sooner, but I'm really nervous about applying for it in case it get turned down and negatively affects my credit rating as well. It's taken a while to get it to where it is now, which I'm pleased about (952 on CreditExpert.co.uk). So my question is do I suck it up and take the hit if it's turned down? Do I keep applying until I do get accepted? It's a Post Office Credit Card so the interest is low compared to a lot of others anyway. And if it is accepted, should I close the old credit card accounts as I'm not sure if it's good or bad to have them open at zero balance, as I've been told conflicting things....

So sorry for the long post, and I know it's not a big problem in comparison with other peoples on here - but any advice whould be very much appreciated. I'm thinking long term now that I've got myself some breathing room in the short-term.

Thanks in advance for any help

Eonel

There is no such thing as a "credit card rejection" marked on a credit card report. When you apply the credit card the company will do a credit search on you. That credit search is recorded on your report, but any subsequent decision by them not to issue you a card is not recorded.

One credit search on your record is not a problem, but having too many credit searches on your file in too short a period can be. It is an indicator that you are potentially desperate for credit. So applying for one card will be OK, just don't follow up with a string of other companies if unsuccessful.

What might be a problem for you is your existing available credit to salary ratio. I see you already have a few credit card/loan accounts. Any new credit card application will look at how much credit you already have available against your salary, which your Experian score does not take into account as it does not know your salary.

At the end of the day, you won't find out if they are going to give you another card until you do apply. I wish you the best of luck.

If you do get a new card then I would close the other credit cards. They will appear on your credit report as Settled and are positive as they demonstrate that you can manage credit. If the accounts are closed you will have an improved credit-salary ratio in any future credit applications.

chattychappy

Agree with the above.

On balance I would apply for a 0% card. If successful I woudn't close the old cards. I wouldn't do more than a couple of applications.

debtfreeby30 wrote: »

It's taken a while to get it to where it is now, which I'm pleased about (952 on CreditExpert.co.uk)

This really is meaningless. It's just a figure generated by Experian and supplied to you for a fee. Nobody else sees that figure. The lenders take the raw data and score themselves, based on that and other information. There have been a number of threads where people complain of getting as high as 999 but still not getting credit.

KingElvis

The Experian Credit "Score" is garbage, you can find free online score tests (there's one on this site) that will give you one for nowt....I myself will give you an Elvis Score for just the paltry sum of £5 via Paypal.

The Elvis Score is gilt edge and accepted by everyone. I will even update this score every month for another £5.

Lessbutbetter

The Elvis Score is gilt edge and accepted by everyone. I will even update this score every month for another £5.

Quality answer but Debtfreeby30 this is the truth. Your 952 is meaningless as its not something the banks are interested in or even see, but the info on your report is. Many people with the magic yet spurious 999 have been rejected point blank. You can read about them on here.

Hope this helps

johnedward_2

Hi everyone,my first post.Just a word of warning.I recently was turned down for a credit card and told the credit reference file had no info on me.In fact there was one minor difference in the address I submitted to the address they had on file.The Royal Mail had 'updated'my address slightly some time ago and it had never occured to me to tell the credit reference agencies about this small change.All ended well and I got the card I wanted.So it is worth while ensuring that the agencies have your exact address.

debtfreeby30_2-2

lol, so I gather no-one is a massive fan of Experian on here? Right well that gives me even more reason to cancel with them, I've tried a couple of times now and they always sweet talk me round to staying for less money but if I'm aware of the info held on me now then maybe it's unneccesary. I did find out I was still financially linked to my ex, which I didn't want to be, and had it removed, but maybe that won't mean anything to anyone outside Experian!

With regards to closing other accounts, I have my Halifax Credit Card with a zero balance, and the Post Office card with a £2400 limit has a balance of £1852.82. So while Eonel's advice ("If you do get a new card then I would close the other credit cards. They will appear on your credit report as Settled and are positive as they demonstrate that you can manage credit. If the accounts are closed you will have an improved credit-salary ratio in any future credit applications.") makes most sense to me, I have other people who agree with you Chattychappy: "On balance I would apply for a 0% card. If successful I woudn't close the old cards.". And this is what I'm confused about. I've been tempted for ages to cancel the Halifax one as I don't use it, and now ask the Post Office to reduce my credit limit, but I thought it could be detrimental that I was closing my lines of credit as some people sort of thought it was better to show you have been given credit as you are trusted to pay it off. Which now I'm thinking about it is quite stupid actually

JohnEdward - welcome to MSE!! And thank-you for taking the time to post, I really appreciate the advice, I have moved out in the last year but never got round to having my mail transferred here, as I only moved down to Belfast and I'm up home a good bit anyway so seemed a lot of hassle when I didn't know how permanently I would be here.

And Elvis - I actually lol'd at your post, cheeky pup

KingElvis

The information held in your credit report is very valuable, so in a way, Experian is of some use because you can correct anything that's wrong.

I think their latest wheeze is to try and extort £14.99 from poor hapless people for watching their report update once a month...that's the modern version of the snake oil seller.

The Experian guy will be along soon to say their score is great and that they programme the scoring systems for banks etc. To that I say tell us more, be specific and I'll buy that line of shonk but just saying it is bunkum. The banks all run their own systems based on information held at the THREE main reference agencies.....Experian would have you think they're the only one.

In summary, the Experian score is like week old sprouts and smells like it too.

debtfreeby30_2-2

I basically just said that to someone else on another thread based on what I've gathered here and now noseying through some other threads - it seems the info on your report is good to see, but the score they give you is a little pointless in the grand scheme of things and therefore not worth paying extra for? My main decision now is really whether or not to cancel and reduce my lines of credit before applying, or keep them on. Be-fuddling and bewildering!

[Deleted User]

Agree that the Experian scores are meaningless. But don't buy them form Elvis either. I bought one, and it went all rusty within a week. I think he manufactures them cheaply in China and ships them in by the boatload.

On the other hand, the zx81 scoring system uses binary coding and is therefore grounded in science. And obviously produced by one of the most powerful computers known to man.

I would estimate yours to be 0011100010001.

KingElvis

Deleted_User wrote: »

Agree that the Experian scores are meaningless. But don't buy them form Elvis either. I bought one, and it went all rusty within a week. I think he manufactures them cheaply in China and ships them in by the boatload.

On the other hand, the zx81 scoring system uses binary coding and is therefore grounded in science. And obviously produced by one of the most powerful computers known to man.

I would estimate yours to be 0011100010001.

I'll have you know that my scoring routine was developent by Exquiperian and knows all known variables, loop holes and will even tell you which cards you could 100% apply for and get declined. My new "Score Clock" which updates via GPS even displays your score live as it changes and also does a decent version of Suspicious Minds.

Unlike Credit Expert, I have not found a way of refering people to bottom feeder loan companies yet but I'm confident that this facility will also be available soon.

Your "estimate" of 0011100010001 looks way out to me so please ignore it op, your Elvis Score is 3 1/2 hamburgers.....this score is also just as much use as the Experian one btw.