How do I improve my score to get a 0% balance transfer?

donkeyshorn

I need to put some of these below on a 0% balance transfer or a reduced APR, so I can start a snowball. I really don't want a loan. Two at the bottom are interest free.

I've just got knocked back on a MBNA interest free Balance Transfer CC.

On my Experian report, we missed a couple of card payments and one store card payment over a year ago.

These are all in my name but paid for by me and the OH. She has bad credit with CCJ's etc. I have no CCJ's or defaults.

We have also have a large mortgage.

Balance/credit limit/minimum payment/Direct Debit amount

Store Card 1
776/5000/73/80

Store Card 2
540/2400/28/32

Credit Card 1
9218/9900/250/250

Credit Card 2
6809/6950/103/103

Credit Card 3
603/700/16/20

Interest free
Santander 1 0%
527/-/41/41

Santander 2 0%
1073/-/52/52

My current account has a 500 overdraft which I use every month.

I presume I should pay off the store cards with overtime and then close the accounts?
Should I reduce the credit limits?

Cheers!

matttye

Pay off the highest APR debt first, and I would ask if you can reduce your limits as you're going along, as the total amount of available credit factors into decisions as to whether to lend you more.

I'm not sure how reducing a limit works. If it re-credit checks you each time then maybe do it only every so often.

gb12345

donkeyshorn wrote: »

I need to put some of these below on a 0% balance transfer or a reduced APR, so I can start a snowball. I really don't want a loan. Two at the bottom are interest free.

I've just got knocked back on a MBNA interest free Balance Transfer CC.

On my Experian report, we missed a couple of card payments and one store card payment over a year ago.

These are all in my name but paid for by me and the OH. She has bad credit with CCJ's etc. I have no CCJ's or defaults.

We have also have a large mortgage.

Balance/credit limit/minimum payment/Direct Debit amount

Store Card 1
776/5000/73/80

Store Card 2
540/2400/28/32

Credit Card 1
9218/9950/250/250

Credit Card 2
6809/6950/103/103

Credit Card 2
603/700/16/20

Interest free
Santander 1 0%
527/-/41/41

Santander 2 0%
1073/-/52/52

My current account has a 500 overdraft which I use every month.

I presume I should pay off simply be with overtime and then the next account?
Should I reduce the credit limits?

Cheers!

Is the mortgage (or any other accounts you have) in joint names?

If so then your OH's CCJ is not going to be helping you.

You have 2 0% cards and don't appear to be using them can you balance transfer some money to them?

Getting more credit is really not going to help you unless you are able to change the fact that you appear to be living beyond your means (what is to stop you putting more money on the cards you clear?). You would be better off visiting the debtfreewannabee forum and getting advice on their about how to cut your costs, so that you can start snowballing the cards you all ready have.

donkeyshorn

matttye wrote: »

Pay off the highest APR debt first, and I would ask if you can reduce your limits as you're going along, as the total amount of available credit factors into decisions as to whether to lend you more.

I'm not sure how reducing a limit works. If it re-credit checks you each time then maybe do it only every so often.

Cheers Matt,

Store cards are the highest so looking to get rid of the them first and then closing the accounts.

matttye

donkeyshorn wrote: »

Cheers Matt,

Store cards are the highest so looking to get rid of the them first and then closing the accounts.

I agree with gb12345 as well, if you want help looking at where you can make some cutbacks, post a statement of affairs - http://www.stoozing.com/calculator/soa.php - on the debt-free wannabe forum.

The_Boss

matttye wrote: »

Pay off the highest APR debt first, and I would ask if you can reduce your limits as you're going along, as the total amount of available credit factors into decisions as to whether to lend you more.

NO NO NO - do not do this. I have first have experience of the extremely harmful effect of closing cards/reducing limits while repaying debt. I went from never having been declined to not able to get any credit for 18 months.

You will look like you are using up all available credit and desperate for more - a huge risk. Repay the cards and then make a judgement call on what to close when paid off. For example, if you repay the first two and close then you have worsened your debt to credit ratio massively.

donkeyshorn

matttye wrote: »

Pay off the highest APR debt first, and I would ask if you can reduce your limits as you're going along, as the total amount of available credit factors into decisions as to whether to lend you more.

I'm not sure how reducing a limit works. If it re-credit checks you each time then maybe do it only every so often.

gb12345 wrote: »

Is the mortgage (or any other accounts you have) in joint names?

If so then your OH's CCJ is not going to be helping you.

You have 2 0% cards and don't appear to be using them can you balance transfer some money to them?

Getting more credit is really not going to help you unless you are able to change the fact that you appear to be living beyond your means (what is to stop you putting more money on the cards you clear?). You would be better off visiting the debtfreewannabee forum and getting advice on their about how to cut your costs, so that you can start snowballing the cards you all ready have.

All in my name. We don't have any joint financial products.

The last two accounts not cards but are for interest free items I've bought, i.e. DFS.

Your are right about the 'living within means'. That is now hopefully under control. The light bulb is on!

DH.

matttye

The_Boss wrote: »

NO NO NO - do not do this. I have first have experience of the extremely harmful effect of closing cards/reducing limits while repaying debt. I went from never having been declined to not able to get any credit for 18 months.

You will look like you are using up all available credit and desperate for more - a huge risk.

I didn't necessarily mean he should reduce them to his current balance, just that he should reduce them a bit. Sorry, should've been clearer about that.

For example, he could halve the limits on both of those store cards and still not be using anywhere near the limit. The other cards are near full and clearly he should wait a while before reducing those at all.

As you well know, having too much credit is also factored into lending decisions.

gb12345

The_Boss wrote: »

NO NO NO - do not do this. I have first have experience of the extremely harmful effect of closing cards/reducing limits while repaying debt. I went from never having been declined to not able to get any credit for 18 months.

You will look like you are using up all available credit and desperate for more - a huge risk. Repay the cards and then make a judgement call on what to close when paid off. For example, if you repay the first two and close then you have worsened your debt to credit ratio massively.

There is a balancing act between debt to credit ratio and debt to salary ratio. At the moment the OP has over 25k of credit available to them - so they are unlikely to be considered for any more credit in the near future (unless they are earning well over 50k).

Not to mention the benefit of removing the temptation of having all that unused credit available to them.

The OP would be better off reducing their available credit, so that in future they are able to manage what they have available (cards spent on and cleared every month) to rebuild their credit history.

The_Boss

gb12345 wrote: »

There is a balancing act between debt to credit ratio and debt to salary ratio. At the moment the OP has over 25k of credit available to them - so they are unlikely to be considered for any more credit in the near future (unless they are earning well over 50k).

Not to mention the benefit of removing the temptation of having all that unused credit available to them.

The OP would be better off reducing their available credit, so that in future they are able to manage what they have available (cards spent on and cleared every month) to rebuild their credit history.

You're talking a lot of hypotheticals though. I'm talking something that has actually happened. I currently have a salary of £28k and £25k in limits. None of these have had limit increases and I reduced one cards limit from £4.5k to £2.5k and another from £3k to £1k (as I only have a total of £4k debts on my cards). So clearly the thresholds for salary to credit limit that you reference are not entirely accurate. I have applied for 4 cards in the last 7 months and was accepted for all so the salary was not a factor in how I was scored and my low credit limit to debt ratio likely played a big part.

The_Boss

matttye wrote: »

For example, he could halve the limits on both of those store cards and still not be using anywhere near the limit. The other cards are near full and clearly he should wait a while before reducing those at all.
.

Yeah, that would work. I thought the suggestion was along the lines of paying off £1000 and then reducing the limit by £1000.