Credit card rejection, possible appeal with £25k savings?

Fruit_and_Nut_Case

opinions4u wrote: »

I did clearly state that I have made an assumption.

But why would somebody with large debts suddenly acquire a lump sum and not clear those expensive debts?

My cynical underwriter's mind tells me that this money won't be funds that really belong to the applicant.

I do agree that this scenario is certainly possible but I wondered if there had been another thread (which I had missed) where it had been explicitly stated. Thanks!

Zack1

Bravehearted wrote: »

Totally different set of circumstances. As you say, you had no debt and good payment record.

This OP's plan is to send 25k to her - which wont work.

Anybody with a brain will ask "why hasn't she paid the debt with the 25K?"

I agree, but was still very surprised they decided to raise it based purely on that info. I overturned one rejection on appeal too, but not sure if that was the one I sent savings info in with.

As for the sending 25k around, it's an assumption - but, unless you're on a 0% deal/student overdraft etc, it seems very unlikely that you'd have 25k sitting there in a savings account which has such a good return you don't need to pay back commercial debts. If the person in question has then they're doing well!

notsurewhat2doo

Fruit_and_Nut_Case wrote: »

Have I missed something? Where has the OP indicated that this is a potential plan of action? Or I being naïve?

Hi,

This is what I was thinking.

The savings have been in the account for about 5 months now which I would assume would clear up any issues of it being "about to be spent" or whatever. I was going to state this in the original post but thought it was irrelevant. Perhaps some people who come on this site are a little stupid and do look for loopholes, but I can assure you I'm not stupid enough to think a quick transfer would allow credit card companies to believe that it was 'her' savings. Thanks very much. I wonder what the perception of people who come to this forum is. Silly? Unintelligent? Or perhaps some other issues?

Anyway. I shall not be led into debates/arguments/disagreements. Yes, the debt does attract higher interest rates, but she pays off sizable figures using her salary. Not sure of exact amounts of percentages as is personal, but the idea is that she keeps the capital in her savings and eventually pays the debt off with around 80% of her salary each month, leaving a little for herself and still the large savings.

Swings and roundabouts, some people would not do this, some would I presume. But thanks Zack your input is very helpful.

lee1985

Nice to see negative assumptions by usual board members.

If your sister has £25,000 in savings and can prove this had been held in her name for a good length of time then it will bear some weighting on her appeal.

Since it is highly likely that your sister holds too much debt in her name, the savings, unfortunately in her case would do little to support the appeal. Although it can be said that the savings are genuine and not soon-to-be-spent, the problem is, quite simply, that an accept decision only adds more debt to an currently worrying situation.

Savings are only advantageous when the score falls slightly lower of what is required for a conditional accept (that is, a manual decision). In this case the savings act similarly to a security, making up the short fall in score due to an increased vision of ability to pay. This could explain why Zack was lucky in his application. Of course there is always a risk with this but there is a risk with everyone even billionaire arabs - that's why it's called risk-based scoring.

opinions4u

notsurewhat2doo wrote: »

The savings have been in the account for about 5 months now which I would assume would clear up any issues of it being "about to be spent" or whatever.

Not really. The savings could be blown on a new car, a nice cruise or strip joints at any time. Hence savings not having a significant impact on the ability to attract new credit.

I was going to state this in the original post but thought it was irrelevant. Perhaps some people who come on this site are a little stupid and do look for loopholes

Yes, they are.

but I can assure you I'm not stupid enough to think a quick transfer would allow credit card companies to believe that it was 'her' savings. Thanks very much. I wonder what the perception of people who come to this forum is. Silly? Unintelligent? Or perhaps some other issues?

You get a range of different approaches. Your post wasn't clear. People, myself included, will assume things.

It's not just this site. Having underwritten personal loans and mortgages in a previous life I have learned that if relevant information is not volunteered it usually means there is something to hide or something iffy. It's a reasonable rule for life as a whole to be honest.

Anyway. I shall not be led into debates/arguments/disagreements. Yes, the debt does attract higher interest rates, but she pays off sizable figures using her salary. Not sure of exact amounts of percentages as is personal, but the idea is that she keeps the capital in her savings and eventually pays the debt off with around 80% of her salary each month, leaving a little for herself and still the large savings.

Not being funny, but earning 3% on savings and paying significantly more to borrow is, in most circumstances, pretty bonkers.

In the end, your sister is 21 and owes lots of money. In the same way young drivers pay more for their insurance, younger people (student overdraft excepted) usually pay more for credit or find it harder to get. But if she paid off what she currently owes and then applies for a new credit facility a couple of months later she may find life a little easier.

lee1985 wrote: »

Nice to see negative assumptions by usual board members.

Looking at things through a potential lender's eyes may help to understand how to obtain the facility required.

KingElvis

This thread is just bonkers as far as I can see, fruit loop stuff.

The strange way some minds work is amazing.

[Deleted User]

opinions4u wrote: »

The savings could be blown on a new car, a nice cruise or strip joints at any time.

I understand that new cars and cruises are luxuries, but I don't like the implication that spending money in strip joints is somehow a waste of money.

Bravehearted_2

Having held 25K for 5months is not nearly close to long enough to convince a lender that your sister is liquid.

Any underwriter will assume what most of us here have and that's the sorry fact.

The fact that you don't agree with the viewpoint of others' on here doesn't make them stupid or unintelligent - each person is allowed their own perspective. You shouldn't ask for help, then verbally abuse half the forum because you they didn't tell you what you wanted to hear.

lee1985

Bravehearted wrote: »

Having held 25K for 5months is not nearly close to long enough to convince a lender that your sister is liquid.

Any underwriter will assume what most of us here have and that's the sorry fact.

The fact that you don't agree with the viewpoint of others' on here doesn't make them stupid or unintelligent - each person is allowed their own perspective. You shouldn't ask for help, then verbally abuse half the forum because you they didn't tell you what you wanted to hear.

Actually and to be fair, the OP didn't 'verbally abuse half the forum'. If you read and did not jump to conclusions the user says about the perception of board members on him, i.e. opinions4u and others thinking he is stupid enough to come on here with a fake story when really he's "just transferred some money to his sister hoping that it will work". Which is a very fair comment. Assumptions shape the world of course but I think it is a true comment about people wanting to come on here for loopholes and blaming others and this is what makes board users so skeptical. However, this user (the OP) doesn't seem that stupid, the perception I get is a genuine user of average intelligence (i.e. doesn't come across as a moron). Maybe I'm wrong, but I'm not going to accuse him or put him down when what he says seems genuine. In other words, I don't think the OP is one of the idiots that come on here trying to get out of things - it's just unfortunate, as always with the vast majority of new users, he's dealt with awkward responses.