Credit Reference Info

sfax

BugsyBrowne wrote: »

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.

And the relevance of this magic %? Clearly not relevant at all in this case as you've said yourself. Whereas the repayment behaviour and the use of a large overdraft is relevant and is more likely to be the reason for a decline IMO

SnowTiger

BugsyBrowne wrote: »

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

That £3,000 overdraft the OP is "always within and gradually paying off" won't help. It suggests the OP is already financially stretched.

BugsyBrowne

SnowTiger wrote: »

That £3,000 overdraft the OP is "always within and gradually paying off" won't help. It suggests the OP is already financially stretched.

The old being in a planned overdraft myth strikes again theres no difference in having a balance on a credit card.

droiderm

I disagree at least for mortgages.
Lets forget to details.
What does living in an overdraft and having a constant credit card balance indicate ?
Would you consider that low risk ? I wouldn't

BugsyBrowne

droiderm wrote: »

I disagree at least for mortgages.
Lets forget to details.
What does living in an overdraft and having a constant credit card balance indicate ?
Would you consider that low risk ? I wouldn't

Say the OP has spent the last 15 years with the same bank and have an excellent credit history of paying back what they're borrowed with no missed/late payments including loans/credit cards and there salary is near on 30k and have a debt of 5k and often pops into their planned overdraft hardly high risk would you say.

Missed/late payments high borrowing,defaults,ccjs,unplanned overdrafts is high risk.

sfax

BugsyBrowne wrote: »

often pops into their planned overdraft

Think you need to re-read post #5. Sounds to me like the OP is always overdrawn and slowly paying it off. Ergo, when combined with a credit card balance that also isn't being reduced quickly (perhaps only by minimum amount), it's seen as high risk, or certainly high enough to decline more credit being extended.

Apologies to the OP if this isn't case and I don't mean to sound critical as I've been in the same situation myself in the past; but if it is the case, I can understand the lender's reasoning.

It's a catch 22 because if you could get the 0% card, you'd transfer the balance, close the old credit card, not owe any more, not have any more available, pay less interest and pay it off more quickly. Unfortunately they have to look at worse case scenarios and risk of default etc.

jdv4u

sorry, whats an OP? I'm new to this forum .. lol .. as for payments, overdraft interest + charges work out at £55 pcm - i pay in £100, Cred Card min payment is usually around £65-£75 - i pay in £100. As LTSB are increasing my APR to 26.44% i guess if i cant get a 0% balance transfer its in my interest to pay more per month.

TheGenerus1

jdv4u wrote: »

sorry, whats an OP? I'm new to this forum .. lol ..

I believe it mean you, the Original Poster

sfax

jdv4u wrote: »

sorry, whats an OP? I'm new to this forum .. lol .. as for payments, overdraft interest + charges work out at £55 pcm - i pay in £100, Cred Card min payment is usually around £65-£75 - i pay in £100. As LTSB are increasing my APR to 26.44% i guess if i cant get a 0% balance transfer its in my interest to pay more per month.

You are the OP (original poster) It's positive that you are paying more than the minimum payment but I'm guessing about half of that is interest so the balance is only decreasing by £50/month. Not sure on your best approach to be honest but personally I would want to reduce the highest interest+charges debt first.

jo-bo

You need to reject the increase in the apr NOW!!! This means that the card will be closed for further borrowing but the interest rate will NOT go up.