Rejected for Card - Why and Suggestions?

Thrugelmir

tiredofpoorservice wrote: »

At present I have a fairly scary £30,000 on credit cards

There's your answer. Against a backdrop of affordable and responsible lending you'll struggle to find a Company interested in your business.

tiredofpoorservice

Thanks for all the responses. I guess there had to be some sort of max.

Would it help to reduce credit limits on my other cards to what I need? Would it help to remove the overdraft facilities on my current accounts (I never need these!)?

Incidentally, my score was on Equifax, not Experian. I still don't really understand how my score relates (or does not) to my likelihood of being accepted/rejected. Perhaps I'm just being dim.


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Tixy

tiredofpoorservice wrote: »

Incidentally, my score was on Equifax, not Experian. I still don't really understand how my score relates (or does not) to my likelihood of being accepted/rejected. Perhaps I'm just being dim.

Loosely - these scores may be an indication as to how lenders generally would view the credit file part of your application.
They do not and cannot take in to account other information your provide as part of your application to a potential lender - and certainly one very key part of that information is your income.

Thrugelmir

tiredofpoorservice wrote: »

Thanks for all the responses. I guess there had to be some sort of max.

Would it help to reduce credit limits on my other cards to what I need? Would it help to remove the overdraft facilities on my current accounts (I never need these!)?

Incidentally, my score was on Equifax, not Experian. I still don't really understand how my score relates (or does not) to my likelihood of being accepted/rejected. Perhaps I'm just being dim.


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Tidying up accounts may be detrimental in the short term. Though worth doing for the longer term benefits.

CRA's supply metrics of data to the finance houses (as finance houses themselves supply far detailed information to the CRA's). Far beyond what a consumer sees in terms of balance owed and payment status. Lenders then use this data as they wish in terms of the business they are wishing to conduct. So no your score has no bearing!

YorkshireBoy

tiredofpoorservice wrote: »

I guess there had to be some sort of max.

It's much harder to get the lines of credit these days, especially when you're up at 100% as you are. In my stoozing heyday I was enjoying total limits of 3 x salary and had around twice my salary stoozed for a good while.

Would it help to reduce credit limits on my other cards to what I need? Would it help to remove the overdraft facilities on my current accounts (I never need these!)?

I still have most of my large limit cards, kept for decent follow on offers (but these are few and far between these days, with the last being an £18K 12 month money transfer offer with a 2% fee stashed in 3 x Lloyds Vantage accounts making 4%). Probably made a few £100 that's all.


You sound like you have a few current accounts? I've found I have so many current accounts I get regular 'guaranteed' card offers, so this may be an avenue for you to explore? In the last 3 years or so I've had Halifax, Lloyds, and (currently) Nationwide Select. Due to the current account throughput (all have seen significant monies through them), all limits are more than adequate for 15 months slow-stoozing.

tiredofpoorservice

Yes, I do have quite a few: nationwide, TSB, Lloyds, Santander etc. They all show up on my credit report and, with roughly £500 o/d facilities on each (never, ever used) this adds up to quite a bit of additional credit, although I'm not sure if its the total amount of available credit or the total amount borrowed (or both) which is the issue. And perhaps so many accounts looks suspect, although again I can't see the problem in being able to responsibly maintain many bank accounts.

I would love to know why "Tidying up accounts may be detrimental in the short term"! I still really don't understand how companies use this information.


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iAMaLONDONER

tiredofpoorservice wrote: »

Yes, I do have quite a few: nationwide, TSB, Lloyds, Santander etc. They all show up on my credit report and, with roughly £500 o/d facilities on each (never, ever used) this adds up to quite a bit of additional credit, although I'm not sure if its the total amount of available credit or the total amount borrowed (or both) which is the issue. And perhaps so many accounts looks suspect, although again I can't see the problem in being able to responsibly maintain many bank accounts.

I would love to know why "Tidying up accounts may be detrimental in the short term"! I still really don't understand how companies use this information.


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They try to work out if you're likely to default and also if you'll make them money

Experian_company_representative

The calculation about the risk of you defaulting on future repayments it's called your credit score. They can also assess your data to look at affordability and profitability.

James

iAMaLONDONER

Experian_company_representative wrote: »

The calculation about the risk of you defaulting on future repayments it's called your credit score. They can also assess your data to look at affordability and profitability.

James

I'd appreciate it if you replied to my thread about Experian debiting £2 from my card but not providing my statutory credit report due 'a problem'
https://forums.moneysavingexpert.com/discussion/486978

tiredofpoorservice

Experian_company_representative wrote: »

The calculation about the risk of you defaulting on future repayments it's called your credit score. They can also assess your data to look at affordability and profitability.

James

But James, I have a very good score and have never defaulted. So I am a very good risk. As for profitibility...

I just wish I understood better how this all worked.


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