Difficulty in getting a credit card

perdusys

Hi

my 26 year old son is having difficulty in getting a 0% credit card, whereas he doesn't have any problems in getting credit, having recently bought a leather sofa on credit.

He hasn't ever had a credit card, does have an overdraft facility which is aways used to the max every month, but has no defaults on anything. He earns around £20K annually.

Does anyone have any idea why he might be being knocked back for a credit card?

grumbler

perdusys wrote: »

...he doesn't have any problems in getting credit, having recently bought a leather sofa on credit.

I would guess this sort of credit is the easiest to get after payday loans.

He hasn't ever had a credit card, does have an overdraft facility which is aways used to the max every month,

Do you think that maxing out an expensive overdraft every month is a good sign, especially when it's the only information visible to the potential lenders?

Does anyone have any idea why he might be being knocked back for a credit card?

There can be many reasons, especially if it's a good credit card with 0% :Credit Ratings

A first credit card is usually either with the bank one has a well run current account with or one of the Bad-credit Credit Cards

CLAPTON

obviously I don't know all the facts but

he has major problems with his credit worthiness

he doesn't have a credit card.

0% cards tend to go to people who already have a CC and have shown themselves to be able to handle them well.

using his OD to the max very month shows his spending is out of control; whyever is he doinbg this?

20k is a modest salary

perdusys

He's maxing out his overdraft because he has separated from his wife, but is keeping the flat and all their joint expenses on his own. There is a joint loan he pays as well as all the household expenses.

he was hoping to reduce the overdraft, but Halifax would only give him a 26% loan to do so, which is far too expensive.

with our help, he is just about coping, but the credit card would give him a bit extra to deal with unforeseen finances.

Eonel

Being offered a 26% loan is another good indicator of poor credit worthiness perceived by Creditors.

0% cards are generally only available to those with very good credit worthiness.

CLAPTON

how much are his total debts?

joolsybools

Getting him to post an SOA on here might let us give him some more general tips on where he can cut back. http://www.stoozing.com/msoc/soacalc.php

perdusys

He can't really cut back on anything, he's been through a budget with CCCS advisor, as it was when the split happened.
His mortgage is with NRAM, who won't do anything to help in terms of increasing the length of the mortgage etc. The flat is in negative equity. He was advised to either go bankrupt, which he doesn't want to at his age, or send a payment plan to the loan he has ( £160 a month, interest front loaded so no point in trying to pay up earlier) and the unsecured part of his NRAM mortgage ( it was a Together mortgage), and the overdraft which costs him about £60 a month.
At the moment, we are paying £200 a month to help out, but this is only enough to keep his head above water, he has stopped paying his pension to give him a bit extra, and overtime is a rare thing. It's also something we can't do forever.

Any help would be appreciated.

The reason he hasn't done the letter as advised by CCCS was because he wanted to try and cope and preserve the small amount of positive credit history he has already got.

CLAPTON

what are his total debts?

perdusys

Mortgage: £54,000 on mortgage, £17,000 on loan portion
Loan: £3800
Overdraft: £3000

Sofa loan: £800

jonesMUFCforever

With debts like that why on earth did he take out a new loan for a sofa!!
A credit card is the last thing he needs.