First rejection - how to proceed...

Suzz_2

After a few years of snoozing, but only large amounts in the last year or so, I've just got my first rejection:

Scottish Widows - they said on checking with Experien, "we observed that you have a high level of credit balances on your accounts compared with your income. We feel it would be imprudent to approve any addiation credit".

When they checked I would have had about 120% of my salary on cards but I had recently cleared ~£6K and was in the process of clearing another £9K (was hoping to transfer this to them, after a month free with Nationwide)

I wonder what my option are...
- clear some of the balances and ask them to reconsider..?
- forget new cards for a while..?

I'm annoyed that I've wasted an application on them....

smartsaver

up to you but common sence says forget new crards for at least 4 months... Or be prepared to accept lower limits and or more rejections.... It comes to us all...

deemy2004

Give it at least 4 months,

almahadeus

I agree with the above posts, give it some time- also maybe you should decrease your limits by calling the companies after you have paid off the balances and ask them to reduce your limits to a sensible level (eg from £9000 limit to £3000). You can also ask them to send you a letter saying that they will put up your limit in future if you ask. Then you'll have more reasonable credit total.

Cardinal-Red

I've found letters explaining that it's not more debt that you're interested in, but merely to transfer existing deby, help in your case.

I've used what basically amount to formal undertakings to close other accounts if they match/exceed credit limits of your other cards - has had a reasonable acceptance rate.

Also as above, lay off the new applications, and extra to that, cancel any cards you won't be using any time soon.

Suzz_2

Well, nothing ventured... (abridged version...)

Dear Sir,
I am disappointed at your decision not to proceed with my application. While, I have a high level of credit balances on accounts, I have no need nor intention of increasing it further.

I had hoped my application would be successful in order to transfer some of my existing debt to my new card. If I were approved, it would be my intention to close at least one of my existing accounts.

In view of this additional information I have provided, I would be very grateful if you would review your decision.


We'll see what comes of this but whatever they decide I shall be taking the good advice above - cancelling a few cards and lying low for at least a few months... Got another 0% ending in May.. it'll be hard to stop myself..!

smartsaver

Sending current account statements and details of 'savings' accounts also helps..

JasonW_2

Suzz letter is fine, but any letter I write for this kind of thing ends 'I would respectfully ask for.../ask you to...' I guess it means the same thing, but I just like to make sure they know I am asking in a decent way and "respect" them as responsible lenders, blah blah! I honestly have no idea if it works, but I have had very good results with such letters and its my "lucky pants" equivalent, where I am now scared to change the wording cos its served me so well, just thought Id share.

J

Suzz_2

smartsaver wrote:

Sending current account statements and details of 'savings' accounts also helps..

I thought of that... But doesn't sending details of savings kind of prove I'm stoozing and therefore there's a good chance I plan to stooze their money too..?

Why else would someone have a few £Ks sitting on CC's while there's a surprisingly similar number of £Ks sitting in savings!#?

Perhaps they aren't too bothered about stoozers but I'm not comfortable with the idea of offering them evidence that I'm up to it!

smartsaver

How would they know you are stoozing?. They won't have the exact amount you owe credit cards. It could be just ur savings? People accept 0% deals for things even if they have the cash in the bank. Also it proves you are not in as much, if any, debt as your credit searchs may show.. Worked for me with Tescos anyhow..