Credit Reference Info

jdv4u

I, like most people, want to save money and, seeing Lloyds TSB are increasing my credit card APR for the 2nd time in 6 months, I decided to try to get a 0% balance transfer. I applied online for the Halifax 0% for 22 months balance transfer credit card and i was surprised to be declined due to information on my credit file. Baffled i thought maybe Halifax had got something wrong so i applied for the Tesco 0% over 22 months balance transfer credit card and they ALSO declined due to information on my credit file. I have since obtained my credit files from Equifax, Experian and even my CallCredit file and yet there is nothing adverse on any of them so I'm confused really. I always pay my bills on time and at least minimum payment. Im just looking at trying to save money by not paying LTSB the increased interest they are demanding yet seem to be blocked by a credit file which to me looks fine. I dont want to pay for each company to check my credit score as its a waste of money and in the end i dont agree having to pay for information held about me. Is it worth appealing the decisions with Halifax / Tesco and provide credit file copies or would that not make a difference? Any help / advice would be welcomed!

droiderm

If there is truly nothing negative on your credit reports, then I would suggest it may be affordability. Maybe they view you as a risk due to increasing your balance on your credit cards?
What's your income like compared to your credit card balances?
Stop applying, it's something else that will be a negative factor.

jonesMUFCforever

Halifax and LTSB are part of Lloyds banking group.
Two increases in 6 months suggests to me that they are trying to manage you away ie persuade you to take your debt elsewhere.

So you need to apply with someone apart from Lloyds.
If not you could reject the increase in rate and pay off what is owed but your card would be blocked to new purchases.

sfax

Could be declined for a number of reasons but don't keep applying for more cards whatever you do as you'll do more damage to your credit report. Debt / credit limit ratio on your existing card too high? Payment history of only paying the minimum amount? Moved house in the last 2 years?

jdv4u

Well, my credit card balance is £2850 ... monthly income around £1850 after tax .. dont have any other credit apart from a 3000 overdraft which i am always within and gradually paying off .. just being crippled by Lloydst TSB overdraft interest increases and now Lloyds TSB credit card interest increasees .. feel like im being ripped off and cant get out of it .... the fact is that I currently pay about £100 pcm to the Lloyds card im trying to transfer so dont how I can be considered a risk by Halifax/Tesco if Im already paying the card monthly and to be honest if I could get a 0% i would ensure that I pay more to get it cleared within the 0% period. This is the first time Ive applied for credit since probably January as am aware of each application affecting credit applications. Also definitely on register of electors. Frustrated & feeling ripped off (by LTSB)!

sfax

It's not just about monthly affordability of payments. Once you get the card from them, there is nothing to stop you maxing the new card and leaving the balance on the other one, and ending up owing even more. They have to assume that you could do this. The existing balance combined with your overdraft is likely to be why you are getting declined IMO.

meer53

You have over 5k worth of debt and a monthly income of £1850. Plus there is no guarantee that you won't transfer your balance then use the card again. I know you say you won't but Halifax and Tesco don't have that confidence in you i'm afraid. Providing copies of your credit file wouldn't show them anything they haven't already seen as i'd say the decline was because of the affordability. Worth appealing though i suppose, but don't hold your breath.

BugsyBrowne

It certainly isint debt to income why you've been refused especially on around 27k net with only 5k debt.

jdv4u

well to be honest thats what i found strange .. i guess the only way to avoid LTSB ripping me off would be to just pay more per month and get the credit card and overdraft paid off quicker so they dont bombard me with monthly interest!

sfax

BugsyBrowne wrote: »

It certainly isint debt to income why you've been refused especially on around 27k net with only 5k debt.

They don't know what else you have to spend that income on. You might be paying £1,000/month rent. What they do know is there is a credit card balance that is being paid down at £x/month and a £3000 overdraft being used. That could be seen as a risk depending on the exact details, and it looks like it has been in this case

BugsyBrowne

sfax wrote: »

They don't know what else you have to spend that income on. You might be paying £1,000/month rent. What they do know is there is a credit card balance that is being paid down at £x/month and a £3000 overdraft being used. That could be seen as a risk depending on the exact details, and it looks like it has been in this case

It actually does work like that someone who earns say 50k and has a debt of 25k will be seen as having a 50% debt.
Most lenders don't ask for rent but some are now asking household income.