New balance transfer application

zeds

I wish to apply for a new balance transfer card, naturally I'm wondering about my prospects of acceptance.

Now, I *do* appreciate that lenders' assessment of people's prospects will vary according to the individual...but I am trying to work out the influence of two particular factors on my likelihood of success.

In general, the positives in my background are: a) a strong record of repaying debts and cards - I've never missed a payment; b) I'm on the electoral roll (though only for 6 months); c) I don't have any spare cards I am not using (apart from the one that I am); d) my income is all right, not low, not really high.

The two factors I wonder about are: 1) the percentage of my current credit that I am using at the moment; and 2) the size of my current amount of borrowing compared to my income level. Basically, I am quite heavily indebted on my one c card, loan and overdraft, when you consider my (still quite reasonable) income level - and I am using around 90% of the credit available to me.

I might be considered a good candidate for a balance transfer as I clearly have a lot of cash to move from my one credit card. On the other hand...those two factors may count against me? What are lenders - *roughly speaking* - looking for on point 1) (...ie do they roughly speaking want applicants to be using only 80% of their available credit, rather than the 90% that I am, eg)?

Are the two points I am concerned about especially relevant? The MSE test gave me a '90%' likelihood of acceptance for good cards...not sure if this means *that* much though.

bigadaj

There's no guarantees if I were you I'd try a single application for a card and if that fails leave it for a few months.

The one thing that will improve your situation in that time will be lowering your debts so focus on that.

eskbanker

Also worth bearing in mind that even though you (in common with most applying for cards with a decent BT offer) presumably intend to transfer debt from one to another and close your current card, you'll be credit scored as if you have both on the go concurrently, which you will, even if just for a short time. So, credit limits may be set lower than you'd hope, because lenders will see it as additional credit in total.

zeds

@esbanker

Thanks. Is that really correct though, that limits may be set lower than I'd hope; because the card lenders surely want to make money out of people looking to do a balance transfer...or do they see my position (close to my limits - ie let's say...being non-specific...speculative...2-3k off them) as being too close and therefore, for me, the limit on a new bt card would be lower than wanted?

eskbanker

zeds wrote: »

@esbanker

Thanks. Is that really correct though, that limits may be set lower than I'd hope; because the card lenders surely want to make money out of people looking to do a balance transfer...or do they see my position (close to my limits - ie let's say...being non-specific...speculative...2-3k off them) as being too close and therefore, for me, the limit on a new bt card would be lower than wanted?

Unfortunately there is no definitive answer to all this, the only way to tell what you'll be able to get is to apply and find out the hard way. Personally I wouldn't pin too many hopes on your view that "I might be considered a good candidate for a balance transfer as I clearly have a lot of cash to move from my one credit card", as from the lender's perspective you have a lot of debt to move from your current card rather than cash and this implicitly suggests that you may not be in a position to pay it all back. However, go for it and see how you get on....