Declined balance transfer credit card!

redman80

Hi all, I'd really appreciate some advice.
I have £9500 on an interest free credit card from Halifax. The offer rate is ending soon so I wanted to transfer the debt on to another interest free credit card. I applied for a LLoyds platinum card but have just been declined, even though I have an excellent credit rating. We have enough savings to pay off the debt but would obviously prefer to keep earning interest on those and it would also mean we had less of a buffer.
So what it would be great to understand is:
1. Why was I declined, was it because I already have a large debt, and if so, am I likely to be declined again?
2. The other card I am planning on applying for is with RBS, will they automatically decline me as they are part of the LLoyds group.

As I say any help would be greatly appreciated.

DaveTheMus

just pay the debt off...

jonesMUFCforever

Lloyds and Halifax are all part of Lloyds banking group - you can't balance transfer from same group cards.


RBS is nothing to do with Lloyds - it is Nat West and Royal Bank of Scotland.


Bank of Scotland is Halifax.

The_Boss

redman80 wrote: »

I applied for a LLoyds platinum card but have just been declined, even though I have an excellent credit rating.

You don't have a "credit rating" let alone an excellent one as they do not exist.

As above re. Halifax and Lloyds and they may think a £9,500 limit is enough to lend to you at this time and therefore decline you.

redman80

Thanks for the advice.
I have just noticed that the card I was going to apply for is Bank of Scotland not RBS so that sounds like it will be a problem.

MSM says that I should be able to transfer from Halifax to either LLoyds or Bank of Scotland. Is that not correct?

The_Boss

What is your salary and credit limits and balances on cards? Plus details of any loans/mortgages on file?

marvin

redman80 wrote: »

MSM says that I should be able to transfer from Halifax to either LLoyds or Bank of Scotland. Is that not correct?

Yes you can I have done it although part of the same group they are separate entities with their own banking licence.

chattychappy

redman80 wrote: »

We have enough savings to pay off the debt but would obviously prefer to keep earning interest on those and it would also mean we had less of a buffer.

The buffer argument makes sense.

But are you sure you are quids in on the interest? The "real" interest rate you get on savings depends on your tax rate (unless in an ISA). Bear in mind that the BT fee is charged as a percentage on the starting balance even though the balance will decline over time. I can well believe it might not be much either way, with interest rates as they are.

If your savings are instant access, it might be worth paying off the balance but getting a 0% purchase card. Then you can rebuild your savings balance but not pay a BT fee.

redman80

Thanks all,
I think I am going to try one other card with a totally different provider. If this is declined then I will pay off the balance with my savings. It means I have less of a buffer but at least the debt is gone.

Cash_Flow

redman80 wrote: »

Hi all, I'd really appreciate some advice.
I have £9500 on an interest free credit card from Halifax. The offer rate is ending soon so I wanted to transfer the debt on to another interest free credit card. I applied for a LLoyds platinum card but have just been declined, even though I have an excellent credit rating. We have enough savings to pay off the debt but would obviously prefer to keep earning interest on those and it would also mean we had less of a buffer.
So what it would be great to understand is:
1. Why was I declined, was it because I already have a large debt, and if so, am I likely to be declined again?
2. The other card I am planning on applying for is with RBS, will they automatically decline me as they are part of the LLoyds group.

As I say any help would be greatly appreciated.

Why would you apply for another card which is part of the same Banking group as Halifax.

Try MBNA or Nationwide, you can get a good idea if you are going to be accepted without adding further searches to your credit file.

redman80

I am going to apply for a card with nationwide