Credit Reference Info

jdv4u

but surely if i reject the increase then they will shut the account & send the debt to a debt collector or a collections team which will then affect my credit file more. or am i within my rights to reject the APR increase?

TheGenerus1

jdv4u wrote: »

but surely if i reject the increase then they will shut the account & send the debt to a debt collector or a collections team which will then affect my credit file more. or am i within my rights to reject the APR increase?

If you reject the new APR hike, This will not affect your credit rating adversely, nor will it be sent to a DCA. All you would be simply doing is closing your card to new purchases (no more spending on the card).
You will continue to make monthly payments at the current APR (before the increased APR rate) until you pay off the remaining balance. (Again, you will not be able to use the card again).

This will not adversely affect your rating as long as you keep up with your monthly payments.

forgotmyname

No they wont send the debt to a collector. Unless you refuse to pay them or miss payments and dont arrange a plan.
You pay the debt at the current rate. But the account will be closed so no further debt.

As long as you dont miss any payments your OK.

meer53

BugsyBrowne wrote: »

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

I make lending decisions. Using a 3k overdraft to the max rings quite a few bells, believe me. If they have such a good income and little debt, why do they need to use 3k's worth of overdraft ? It's definately not a myth.

BugsyBrowne

meer53 wrote: »

I make lending decisions. Using a 3k overdraft to the max rings quite a few bells, believe me. If they have such a good income and little debt, why do they need to use 3k's worth of overdraft ? It's definately not a myth.

Did I mention maxing out an overdraft No my point is about someone who uses a planned overdraft.

Its the same with credit cards if you have a 5k limit and have a balance of 4.9k then yes this looks bad and with overdrafts the same my point is someone who has a 5k planned overdraft and has a balance of say £500 doesnt look as bad as someone who has maxed out their credit cards.

If using a planned overdraft looks like your struggling what does having a high credit card balance means then? Does it means your not struggling just because you havent used an overdraft but spent thousands on a credit card instead? Oh customer X is managing his bank account brilliantly as he don't use his OD oh hang on but mr X has credit card balances everywhere.

I believe using a maxed out overdraft looks bad as well as a maxed out credit card do but using a planned overdraft sensibly doesn't look as bad as people believe.

droiderm

I don't think your getting the point. Someone who uses a planned overdraft/ or even a credit card and has a consistent balance, has some financial issues.

You seem to think "managing" these things is the be all and end all.

Personally, being 3-5k in an overdraft is more scary than having 3-5k on a credit card. You would still be thousands down after being paid. That's depressing.

But the important factor to me is there being ALWAYS being a consistent balance on either. It's not a positive indication is it?

In terms of a planned overdraft it was a few hundred quid which is easily cleared on pay day, then fine. But it it's one/two times your salary that's more of a concern.

Anyhow, the creditors seem to agree the combination in the OP's case isn't a good one.

I think people need to understand that it isn't just a case of paying minium payment all the time, and that justifies being accepted by lenders.

It isn't. I can completely understand why someone perpetually in a 5k overdraft (or whatever) is considered a risk even though there aren't any missed payments etc.

Personally I would rather lend to someone who manages their debt well, i.e. consistently pays it down.

And, I don't think the purpose of a planned overdraft is to be in it all of the time. It's their to dip into now and again as a form of short term convenient borrowing.

Experian_company_representative

If the lenders specifically said they refused your applications because of information on your credit report and you have obtained your report and can't work out what they were unhappy with, I would go back to them with your report and ask them to point out the problem. They should be able to do this for you.

James Jones

BugsyBrowne

droiderm wrote: »

I don't think your getting the point. Someone who uses a planned overdraft/ or even a credit card and has a consistent balance, has some financial issues.

You seem to think "managing" these things is the be all and end all.

Personally, being 3-5k in an overdraft is more scary than having 3-5k on a credit card. You would still be thousands down after being paid. That's depressing.

But the important factor to me is there being ALWAYS being a consistent balance on either. It's not a positive indication is it?

In terms of a planned overdraft it was a few hundred quid which is easily cleared on pay day, then fine. But it it's one/two times your salary that's more of a concern.

Anyhow, the creditors seem to agree the combination in the OP's case isn't a good one.

I think people need to understand that it isn't just a case of paying minium payment all the time, and that justifies being accepted by lenders.

It isn't. I can completely understand why someone perpetually in a 5k overdraft (or whatever) is considered a risk even though there aren't any missed payments etc.

Personally I would rather lend to someone who manages their debt well, i.e. consistently pays it down.

And, I don't think the purpose of a planned overdraft is to be in it all of the time. It's their to dip into now and again as a form of short term convenient borrowing.

A debt is debt wether its on a credit card or an overdraft or a balance on a loan either way lenders will still work out your balance & available credit exactly the same when credit scoring.

droiderm

That's just guess work

BugsyBrowne

droiderm wrote: »

That's just guess work

Yes but is it not how most of these credit scoring answers come from as it is not true facts you hear is it.
You only go by people on the forum like most of us get our information but this probably originated from 1 poster but escalated in everyone believing the same thing.

I am not a computer that credit score applicants nor are you so at the end of the day no one knows fully how credit scoring works FACT....