Credit Card Decline Help

Buxem

dazza.mk wrote: »

I've previously had an application go to a manual check with MBNA when I reduced a limit on an exitsing card from £6,000 to £4,000 (obviously querying if this was due to financial difficulty). If this was done some time ago then all the lender will see is you have a history of dealing with a £600 limit ratehr than £5,000

I have been limiting the amount over the life of the card starting from 3 months in as I've been paying it off.

Buxem

MABLE wrote: »

Well there lies your answer!

This is what I feared. :mad:

Tixy

Credit card companies make money from people from the fees the charge the merchants when people make purchases, as well as from interest & balance transfer fees etc.
There are plenty of people on here who never pay any interest to the credit card companies but still get accepted for lots of cards without problem. You are not being declined for that reason.

What might be a factor is the high utilisation on your existing credit facilities.

Buxem

Tixy wrote: »

Credit card companies make money from people from the fees the charge the merchants when people make purchases, as well as from interest & balance transfer fees etc.
There are plenty of people on here who never pay any interest to the credit card companies but still get accepted for lots of cards without problem. You are not being declined for that reason.

What might be a factor is the high utilisation on your existing credit facilities.

But with the loan and the CC at its previous limit when I am £8k DOWN on this time last year...

Tixy

Buxem wrote: »

But with the loan and the CC at its previous limit when I am £8k DOWN on this time last year...

But did you apply and get accepted for a new card a year ago when you had £8k more debt/availability with either of these 2 lenders?
Its not just about how much debt / available credit you have anyway - a potential lender judges many different things, which do include the current % utilisation of your current facilities amongst many others.

If you provide more information about exactly what is on your credit files and your finances people might be able to suggest other potential reasons why you were declined. Or you could consider getting up to date copies of your credit reports from all 3 agencies in case there are any errors or incorrect items on there.
Or you could even contact the companies who declined you to see if they will give an indication as to why you were declined / or you could even try appealing against the decline.

CLAPTON

Buxem wrote: »

What I earn is irrelevant considering it met the minimum criteria of both cards, and I was given a £5,000 credit limit on my current M&S card prior to my payrise. As per my previous post, this limit is now reduced to £600, with £400 currently on the card.

for obvious reasons you are incorrect.

Buxem

Tixy wrote: »

But did you apply and get accepted for a new card a year ago when you had £8k more debt/availability with either of these 2 lenders?

No. The loan was for a car and through a car finance company. The credit card (where £5k of the 8k came from) was through M&S Money. I didn't have any products with them previously.

Tixy wrote: »

Its not just about how much debt / available credit you have anyway - a potential lender judges many different things, which do include the current % utilisation of your current facilities amongst many others.

I understand this, but this is why I am confused. The only available credit against my name is the £600 on the credit card and £400 overdraft and I work full time. The £400 on the credit card will be paid off come payday, so my mobile phone (all £26 per month) is the only other thing I regularly pay.

Tixy wrote: »

If you provide more information about exactly what is on your credit files and your finances people might be able to suggest other potential reasons why you were declined.

What information, minus disclosing my salary (which I am not willing to do) have I not provided when asked?

Tixy wrote: »

Or you could consider getting up to date copies of your credit reports from all 3 agencies in case there are any errors or incorrect items on there.
Or you could even contact the companies who declined you to see if they will give an indication as to why you were declined / or you could even try appealing against the decline.

I wasn't aware I could ask them...

Buxem

CLAPTON wrote: »

for obvious reasons you are incorrect.

In my opinion, it's not relevant. I earned more than the minimum earnings they required.... Clearly it's so obvious I'm beyond stupid. Thanks for the support. :wall:

Buxem

Silky89 wrote: »

Although your limit has dropped, you are using more % of your available credit.

if you had kept your limit at a much higher (maybe £1k) then you would be only using 40% of your available credit).

Just because the limit has gone down doesn't mean it's a good thing on your credit file.

I don't follow.... How am I using a higher % of my available credit when only the limit on the 1 credit card has dropped at my request.... The amount of available credit hasn't dropped. Please can you explain?

Tixy

Buxem wrote: »

What information, minus disclosing my salary (which I am not willing to do) have I not provided when asked?

Not that you hadn't answered when asked but in the first post you mentioned a card and mobile phone - so someone suggested possibly a lack of credit history.
Then you mentioned a paid off loan, which made that seem less likely to be the problem.

In the last post you mention an overdraft, presumably this also appears on your report - one thing that can cause a problem is if a person uses their overdraft every month - so if people know you have one then we can ask you if its used all the time / sometimes etc and indicate this could be a risk.

You say your credit history is good - do you have any missed payment markers at all in the last 6 years that are appearing on any of your credit files?

In the first post you mention wanting to card tart which sounded like you wanted to move the £400 balance to a new card - which would mean people might be thinking your finances are strained if you cannot pay that off in a few months, but you've now mentioned paying it off next month.
If you have paid a lot off the card in the last couple of months possibly this isn't reflected on your credit file yet - so it could be that potential lenders are still seeing you as having a balance much higher than you have now.

So all I meant is that the more people know about what is on your files - the more likely we will be able to suggest why you might have been declined, which might then help you be successful in the future.

Buxem wrote: »

I wasn't aware I could ask them...

You can ask. Then won't get an exact answer but they might give you an indication - such as 'something on your credit report' 'due to your existing level of debts' or similar.