Help! Rejected application and don't know what to do next!

Belle333

I currently have around £11,000 on three different credit cards. I haven't spent on these accounts for some time but have let it get to the point where I hadn't realised how much the total amount actually was!

After using the calculator on here I decided I would apply for the Halifax card 0% over 22 months. I felt so positive about being able to pay this off and worked out I could do it in 21 months! However, my application was just rejected and I am completely devastated and don't know what to do next. I am waiting for a credit report so I can look at this. I am worried a couple of my payments were late on one card and this might have affected things.

What do I do next? I am currently not being able to bring the balances down on my current cards! But, I'm worried about applying for other cards in case I keep getting turned down and this has an affect on credit rating even more!

Anyone with any advice - I'd love to hear from you. I really don't know who to talk to!

Thanks

giblet10

Well the late payments might be why - Halifax are generally pickier than they were..plus there are others on here who have said Halifax overturn rejections when appealed..so that's an option.

Alternatively, if you're trying to rid yourself of debt, have you considered a personal loan with your own bank?

Belle333

I hadn't actually thought about appealing because wouldn't really know what to appeal on!

Not thought about personal loan route either. I guess I just got excited by the prospect of paying off all the amounts interest free over a reasonably short period of time!!

giblet10

The main difference between an initial application and appeal is the former is automated, the latter manual by a human.

For instance, the appeal allows you to add a more human commentary on why you you should have the card. It also enables you to validate what you said on your application by sending copies of your pay slips, bank statements etc - in essence you're able to try and prove your financial stability..

It doesn't always work, but this is what I do for an appeal:

- remind them you are financially stable (assuming you are)
- send copies of 3 months pay slips/income plus 3 months bank statements
- offer to pay back by direct debit (Halifax gave me a £2k limit increase the day after I set up repayment by DD)

By appealing, you are not wasting that valuable credit search and it's the cost of a stamp - might work, might not..but what else have you got to lose?

Belle333

Thanks, I might give that a try. Is there a particular place to send appeals to and do you know if it takes long to get a reply? You're right, nothing to lose!!

I was thinking about maybe getting an appointment with my bank also because think it would help to actually speak to someone about my money problems and worries!

giblet10

You'll get a letter from the Halifax confirming the rejection - wait until that arrives - it'll have the address to appeal to and also enclose a copy of that letter with your appeal - this has a two fold benefit:

1) It proves who are you otherwise you wouldn't have the letter

AND

2) It helps the bank locate the application on their systems - Halifax, likes others, are huge monstrous beast-like organisations that are generally inefficient - so giving them their own information is a positive starter!

rartherinv

Hi, sorry to hear about your predicament.

One aspect of credit scoring is weighing up an applicants current credit available Vs current credit used, which is a very good indicator of current circumstances. It sounds like you are in the region of 100% available vs used, which is a red hot reason for rejection, especially for a 0% card.

You know you are good to repay £11k in a short period of time if the interest is frozen, but low risk lenders will just see someone who has exhausted their already high limits and wants more debt to rack up.

Writing a letter of appeal is worth a try, but expect the standard 'Please check with CRA's' fob-off in this market.

What I would do is carry on paying your current cards and after 6 months apply again, when your ratios will be lower. If rejected again, carry on for another 6months, and repeat...

Other options include putting your dignity to one side and borrowing from a relative or friend and repaying them, or just stumping up the interest payments... if you can pay £11,000 in under 2 years when there is no interest then having interest on it will not slow you down a whole lot.

Good luck!

bengal-stripe

So you have three cards which appear to be maxed out and have been for a while. You are just treading water (paying the interest) but apparently are not able to reduce the debt. That screams: "Debt-stressed", and that isn't anything a lender wants to see.

You might have the best of intentions of moving the existing debt (or at least parts) onto the new interest-free card. But nobody can know for certain, whether you actually will do it; or, if you do, whether you won't run-up new debt on the old (and now empty) card. There is a possibility, that in six months time you might be deeper in debt than you are today.

Before you apply for any more credit, show any potential lender that you can handle (and reduce) your debt.

Hazzinho

If you have missed payments, maxed the cards and always make the minimum payment that is a good flag you are a bad risk for lenders as you can continue building up debt. Whatever debt you have double it, if that is more than your wage you have little chance. Also consider if they accept you, you have £11k credit available to spend again. My advice is to get on the debt forums for advice.

Bravehearted_2

To be honest I'm not quite sure what got you excited at the prospect of this card as there is such a very slim chance of you being accepted. An appeal is also almost certain to be No.

You're maxed out (on multiple cards), late payments, paying the minimum. This indicates struggling so no lender will give you more credit at 0%

Cut your cards and chip away at them starting with the one with the highest APR. Also check that you are living within your means.