Accepted for credit card but...

chocoholic_chick

After the inital 0% on purchase period the APR is 22% and I've only been accepted for a £1000 limit. My credit score ( when checked a couple of months ago ) was 999 on the site I used ( so basically the highest you can get ) so I can't understand why the APR, which is apparently worked out using your personal circumstances, is the highest possible one they do??

I had to input my monthly income and outgoings but after my various commitments I'm still left with just over £700 disposable income a month, I just thought that I would have been offered more credit and a better APR, or am I missing something here?

BugsyBrowne

You do realise credit expert don't lend money so why are you taking any notice of what they've scored you, 999 doesn't mean a thing so please take no notice of it.

chocoholic_chick

Of course I realise that! What I meant was I have a good credit score, never defaulted, only have my mortgage and 1 other loan, was just trying to get that across really. To me the APR I have been accepted for would indicate I am a higher risk customer maybe which I don't understand

YorkshireBoy

chocoholic_chick wrote: »

only have my mortgage and 1 other loan

When the lender credit searched you they could find no evidence of revolving credit management.

Put simply, you don't currently have a credit card, so they have no way of knowing how you'll manage it, ie you were unable to demonstrate credit history of the type they're looking for.

But it isn't really a problem is it?...because by the time the 0% is up you'll have repaid all the debt and have some history to show the next lender, where you'll almost certainly see a larger limit and better 'go-to' rate.

chocoholic_chick

Sorry should have been clearer, I have had credit cards in the past, just don't use them anymore. Always paid cards off in full each month so never paid any interest or late payment fees etc do you think this would work against me?

YorkshireBoy

chocoholic_chick wrote: »

Sorry should have been clearer

That always helps.

I have had credit cards in the past

How recently? Anyway, you have no current cards on your credit file so my suggestion still stands.

Always paid cards off in full each month so never paid any interest or late payment fees etc do you think this would work against me?

No, at least that's not been my experience. I've only ever paid interest on one card, and that was 0.9% APR...because the equivalent cash was sitting in a savings account making 6.5% AER gross (circa 5% after tax).

opinions4u

YorkshireBoy wrote: »

. I've only ever paid interest on one card, and that was 0.9% APR...because the equivalent cash was sitting in a savings account making 6.5% AER gross (circa 5% after tax).

Egg 2008. Or Bank of Scotland IASA 2008.

Those were the days!

YorkshireBoy

opinions4u wrote: »

Egg 2008. Or Bank of Scotland IASA 2008.

Egg...plus 3 months of 7% from Halifax, and a couple of NatWest ISAs paying almost 7% tax free, are the ones that immediately spring to mind.

Those were the days!

They certainly were. £237 a month net interest coming in, the bulk of it earned from fee-free BTs muled through Egg Money.