How long should I wait before re-applying for a credit card after rejection?

jelajelavic

About a month ago i tried to apply for a credit card balance transfer so I could transfer debt from one cc at 26.9% to 0% to save interest cost however I was rejected. I assume this is because I probably had a high enough limit and balance as all my other credit scores are probably OK (i have checked my file). I always pay the minimum or slightly more, full time employment good salary etc. But I did have two £6k credit cards maxed out.

However, recently I received some money so paid one off and will cancel it very soon and hoping that I will be able to get a new card to transfer the remaining £6k to 0%. But I don't want my recent rejection to prevent this from happening so how long should I wait before applying for another balance transfer cc? The 26.9% interest is making it hard to pay off quickly.

jonesMUFCforever

Have you tried the bank where your salary goes in?

I would wait a couple of months before re applying.

Macca83_2

If re-applying to the same lender its usually advisable to wait at least six months. Some banks though, operate on an internal scoring system. Lloyds banking group would be a good example of this. Their systems update on a monthly basis.

Id maybe suggest trying lenders that use a soft search facility. This would give a good indication of acceptance without putting too many searches on your file.

jelajelavic

Thanks for your replies. I wont go back to the same lender due the fact id have to wait longer and I cant use LBG due to work independence reasons. So my options are a different lender or the bank where my salary goes (HSBC). Do banks have a restriction on Balance transfer offers for current account customers or if you've held a credit card recently? I had one until about 4 months ago.

jelajelavic

Oh and do you know what lenders use soft searches? Thanks

TheGenerus1

jelajelavic wrote: »

Oh and do you know what lenders use soft searches? Thanks

Nationwide does a quotation\soft search. If you accept the quote, then you will authorise them to do a full application search.

Barclaycard has a pre-checker facility which will do a soft search and output the cards you are likely to be accepted for.

Beware : Getting accepted after a soft search does not necessarily mean that you will get accepted once a full search is carried out, as many people have found out in the past. Make sure there are no nasties on your credit files.

learningaboutinsurance

jelajelavic wrote: »

So my options are a different lender or the bank where my salary goes (HSBC). Do banks have a restriction on Balance transfer offers for current account customers or if you've held a credit card recently? I had one until about 4 months ago.

HSBC have a pretty good offer on at the moment for there Current account customers revolving around CC's and a very good BT offer.

Crafted exclusively for our current account customers

Enjoy no interest for 23 months on balance transfers (3.3% balance transfer fee applies, minimum £5)
Available to HSBC current account customers. Check full eligibility details opens an overlay window


Find out more about HSBC credit card
How to apply for HSBC credit card
View more exclusively crafted offers for our current account customers
Representative
17.9% APR
variable


Representative example:
based on an assumed credit limit of £1200, our 17.9% p.a. rate for purchases gives a representative rate of 17.9% APR variable.

No interest for 3 months on purchases

Holiday discounts
Discounts on holidays booked through the HSBC Travel Service
Additional cards available
Additional cards for partners or family members over 18
home&Away Privilege Programme
Available when using your HSBC Credit Card at home or abroad
Manage your card online
It’s quick and easy to check your balance and make payments
24 hour worldwide assistance
With an emergency Cash Advance if your card is lost or stolen
No annual fee to pay

Link: http://www.hsbc.co.uk/1/2/credit-cards/credit-card?HBEU_dyn_lnk=JanCampaign_LandingPage_CreditCard_FindOutMore

learningaboutinsurance

Just as long as you have not had a HSBC card you should be ok

B19JON

jelajelavic wrote: »

However, recently I received some money so paid one off and will cancel it very soon

Instead of cancelling it, why not ring them and ask them if they have any offers so you can bring a proportion of the debt across??
Who are the cards with?

Nationwide saved my bacon & I have a baaad history.
0% for 20 months

sfax

"I did pay the minimum", "I did have 2 £6k cards maxed out". Two very good reasons you were rejected.

Always pay more than minimum even if only £1 more. Work on your debt to limit ratio. 30-40% is supposedly seen as good. 80%+ can look like you're having difficulty managing and lenders won't necessarily want you having more

jelajelavic

Thanks for all the comments. I dont think I can use an HSBC one as I had one until about 3-4 months ago. I could always wait until the 6 months is up I guess.

I also know why my previous debt resulted in rejection, but now I have 6k less and want to apply for another card to get rid of the very high 26.9% APR which will help me pay that off quicker. I just don't want my previous rejection to result in a rejection now that my debt is a lot lower.

Is 3 months enough or should I wait 6 or no real rule of thumb?

Thanks,