When to apply after paying off debts?

schirru

I have recently applied for two credit cards and was referred first, then rejected. My Virgin's card promotional rate was coming to an end and I was going to pay it off anyway, so I applied for AmEx Cashback and after being turned down to Barclaycard for Gold card (I have Initial, but was informed by confused Indians that it cannot be upgraded, long story), just so I can close Initial with high APR. What I didn't realise was underwriters cannot see that I have paid off cards before it is reported to CRAs... I checked my reports with all three CRAs and surprisingly only AmEx made credit search with Experian. There is no credit search on any report from Barclaycard. Now only reason I was declined I can imagine was using about 70% of my total credit limit over the last few months or the fact Halifax hit me with three credit searches when I applied for current account in November. I am 25, on electoral roll, no late payments, £22k job, quite low CC limits (2k, 1.8k, £200 free overdraft). Given it was the debt ratio that gave me rejection, how long I have to wait before applying again? And has anyone idea what is Barclaycard playing with not searching my file? I wrote them letter to ask just in case they messed up something.

Tixy

How do you know it was your debt ratio that caused you to be rejected?

Sounds like barclaycard rejected you based on internal information, and so didn't need to to a credit search.

Do your credit files now reflect that you have paid off whichever balances have been paid off?
And if the initial has been closed is this reflected on your file?

schirru

It's only a guess, but I don't know any other reason I could be rejected. Barclaycard Initial is giving me decent 0% BT offers all the time, so I wouldn't expect my internal scoring is bad, have always used it responsibly. Whole story happened in January (paying off, applications) so I guess new balances will be reported in Feb.

schirru

If anyone is interested: I sent letter to Barclaycard underwriters asking why they refused my application. They called me today from complaints (!!!) department to explain that they didn't search my file because I have Barclaycard Initial and I cannot hold two. I'm quite shocked, as some people on this forum confirmed having few cards from Barclaycard...

Anyway, I was advised that every 6 months account is reviewed and possibly will be upgraded in the future, or I can pay off remaining balance , close and re-apply after 6 months.

As I was rejected twice recently, I'm gonna keep it for some more time because it's my oldest credit card. Any more advice on this?