Closed Accounts interest hike - Credit Report

rocky_robbo

A couple of years ago I froze the interest on a Barclaycard and an Egg card due to them increasing the APR. I was wondering as far as how your credit report is viewed by other lenders does the fact the balance outstanding in my case £3000 on the Egg relate to the credit limit they originally gave me of £7000? I.e £4000 available? In which case how does this look to new lenders? I've checked my credit report and as far as I can see it's fine, no missed payments etc yet I'm being declined from the likes of Tesco due to the fact I "already have a high level of borrowing".

Tixy

Have tesco told you a decline was because you have a high level of borrowing, or is that a 'negative factor' shown by one of the credit reference agencies on a purchased credit score?

rocky_robbo

Tesco sent me a letter telling me credit information from Experian indicates I have a high level of borrowing. I applied online for the Tesco card and got approved with a £3000 limit for the 0% for 27 months it was only a week or two later I get this letter from Tesco saying I've been declined and was wondering if it was to do with the fact I've got closed accounts that still show high credit limits available?

Tixy

High level of borrowing would seem to imply your level of debt, not high level of available credit.

How much debt do you owe in total?

Thrugelmir

rocky_robbo wrote: »

I've got closed accounts that still show high credit limits available?

If the accounts are closed then the credit is no longer available.

Do you still owe money on any of these accounts?

izools

Thrugelmir wrote: »

If the accounts are closed then the credit is no longer available.

Yes but when you opt out of an APR increase on a credit card, closing the account to new spending but paying off the old balance monthly as per the original terms the account still shows as open with the credit as being available on your credit file - 3rd party creditors can't see when a credit card has been closed to new spending, only when it has been closed and settled with a £NIL balance.