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

matttye

The_Boss wrote: »

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.

A high debt to credit ratio could be counterbalanced by a good (preferably impeccable) payment history, which is probably what happened in your case if you're always accepted for things.

The debt to salary ratio is what will set alarm bells ringing for lenders, because no matter how good your payment history is, you can't pay off more than you earn.

You-kip

matttye wrote: »

A high debt to credit ratio could be counterbalanced by a good (preferably impeccable) payment history, which is probably what happened in your case if you're always accepted for things.

The debt to salary ratio is what will set alarm bells ringing for lenders, because no matter how good your payment history is, you can't pay off more than you earn.

Does this mean if I apply for a mortgage Mattye I can only ask for 30k?

matttye

You-kip wrote: »

Does this mean if I apply for a mortgage Mattye I can only ask for 30k?

Secured debts aren't as high a risk to the lender, as they can just repossess whatever the debt is secured on.

Thrugelmir

7 active credit cards and a regularly used overdraft. That's your problem. Lenders are now under an obligation to lend responsibly. Allowing you further credit facilities is more than likely against most mainstream lenders internal policy. So at the current time the ball is your court to get a snowball rolling. As there's inherent danger that an avalanche may sweep you away.

Suggest you start with a visit to the Debt Free Wannabe board. As you've a long road ahead of you.

You-kip

OP no one knows why you've been turned down as every individual is different, you just didn't pass MBNA's credit scoring but this doesn't mean you'll fail other lenders scoring.

My guess it would be the 3 maxed out cards where I think you're having the bother.

rabbit_burrow

Can I make a suggestion?

It looks like you are currently paying the minimum payment on most of your cards, but are paying about £4 more than the minimum payment on 3 of your cards.

I would suggest concentrating those overpayments onto just 1 card (pay the minimum payment on all of them, and pay £12 on top of the minimum payment of one card) - choose the card with the highest APR to do this with.

Although it will not show more favourable on your file, you'll save more money on interest this way, and be able to pay it off quicker, which will be better for your file in the long run.

Also, stick with what you start off paying. Eg, if you are paying £112 (£100 minimum payment + £12 overpayment) to start with, carry on paying the £112, even when the minimum payment drops. This will clear it far quicker.

Thrugelmir

You-kip wrote: »

OP no one knows why you've been turned down as every individual is different, you just didn't pass MBNA's credit scoring but this doesn't mean you'll fail other lenders scoring.

The financial world is changing. Lenders are now keeping ahead of the regulators. As bankers are once again running the asylums not barrow boys.

Credit card companies, through the 3 main credit referencing agencies now share a huge amount of data relating to credit card behaviour. The data may now be starting to be used to identify those that the industry calls balance transfers gamers, and thereby increasing the number of rejections.

The_Boss

matttye wrote: »

A high debt to credit ratio could be counterbalanced by a good (preferably impeccable) payment history, which is probably what happened in your case if you're always accepted for things.

I don't have a high debt to credit ratio though - using less than one fifth of my available credit.

The_Boss

Thrugelmir wrote: »

The financial world is changing. Lenders are now keeping ahead of the regulators. As bankers are once again running the asylums not barrow boys.

Credit card companies, through the 3 main credit referencing agencies now share a huge amount of data relating to credit card behaviour. The data may now be starting to be used to identify those that the industry calls balance transfers gamers, and thereby increasing the number of rejections.

You can easily identify those people and it has been possible to do so for a long time. There is the 0% interest marker on a credit file coupled with whether the user has been making only the minimum payment.

ValHaller

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 would have said highest APR first a few weeks ago. But we are seeing people have their overdrafts taken from them. The risk is 'arrangement to pay' markers and defaults. Unless you are already risking a default, get the overdraft paid down first.

As for reducing limits, others have suggested that it causes a problem. I think the thing to do is to pay off the highest APR card and close it down completely. Use the 'spare credit' to open another.

NO APRs quoted, but it looks like the cheaper credit is all used up. Otherwise I would suggest shuffling debt to lower APR credit.