Why did I get rejected?

PaulC5

I have an interest free credit card with Tesco at the minute that runs out next month.

I have allways paid the minimum by direct debit and occasionally paid lump sums to keep on top of it.

I wasnt too worried about it and planned to transfer it it to another interest free credit card as the transfer fees at current are so low.

I did the soft check on here which came back with an 80% chance of getting the Lloyds 10month interest free credit card, so went ahead and applied through my online account I set up with them a few months back which I use as a savings account and not my main current account.

I was shocked when I was rejected and now im worried I wont be able to transfer my Tesco debt to a 0% interest card before next month.

How can I find out why I was rejected and what do I do next as I dont want to keep applying and being rejected as It wont look good on my credit rating.

[Deleted User]

Could be a lot of things -

income
total limits
total debts
credit history

You'll need to give more details for any guidance.

glentoran99

PaulC5 wrote: »

I have an interest free credit card with Tesco at the minute that runs out next month.

I have allways paid the minimum by direct debit and occasionally paid lump sums to keep on top of it.

I wasnt too worried about it and planned to transfer it it to another interest free credit card as the transfer fees at current are so low.

I did the soft check on here which came back with an 80% chance of getting the Lloyds 10month interest free credit card, so went ahead and applied through my online account I set up with them a few months back which I use as a savings account and not my main current account.

I was shocked when I was rejected and now im worried I wont be able to transfer my Tesco debt to a 0% interest card before next month.

How can I find out why I was rejected and what do I do next as I dont want to keep applying and being rejected as It wont look good on my credit rating.

could well be your answer, although you say you occaionally paid lump sums contually just paying the minimum doesnt look good

InsideInsurance

There is no way to truly find out. You can ask Lloyds and see if they are willing to answer but effectively its a commercial decision and they dont have to tell you. Most of the time you will get a very generic response advising to have a look at your CRA file.

Their affordability calculation will be done on all of the existing credit you have and you maxing out whatever they were considering giving you, the fact you say you intend to do a balance transfer (and close the Tesco card) isnt factored in as they cannot make giving you the new card conditional on your closing the other.

As has been said above, just paying minimum payments is never going to be liked. Do you have other credit where you are routinely paying more than the minimum or is the only thing and/ or you are also paying the minimum on them too?

Pixie5740

You won't ever find out why you were rejected from someone at Lloyds. Lenders don't tell people what caused them to fail the application as people would just fudge the applications to pass. Besides no customer service advisor you speak with knows what the eligibility criteria for passing is.

If you've checked your credit files and there's nothing glaringly obvious on there such as a missed payment or default then chances are it's just that you aren't the kind of customer they want i.e. the kind that takes out a 0% credit card, pays the minimum each month, and repays in full when the 0% runs out so that the lender makes no money out of you.

[Deleted User]

I think you may have to face the fact, that this debt is going to be attracting interest.

I suggest you look to paying it off ASAP.

What's the balance, minimum payment, and what will the APR be going to next month?

bargainbetty

Once you know the APR, consider looking at low-life-of-balance deals. They are sometimes a little easier to get, because the lender will get interest payments as well as the transfer fee.

thebritishbloke

If you don't already have a BarclayCard, you could try their eligibility checker.

PaulC5

Thanks all for your comments, I think its time to use my savings and just get shut of it, but would of rather not as im getting a higher interest rate on my savings than the transfer fee but if I cant get it then I've no choice.

Can debt like this be transferred onto a credit card in my wifes name if she is accepted?

InsideInsurance

PaulC5 wrote: »

Can debt like this be transferred onto a credit card in my wifes name if she is accepted?

Yes, though one or two providers contractually say you cant they wont actually know short of asking you to provide evidence.

If she transfers it to herself though she will become 100% liable for the debt despite you having run it up.

Its unusual these days for savings, after tax, to be of a materially higher interest rate especially as you were only looking at a 10 month interest free period. Of cause there can be other reasons for wanting cash in the bank whilst having outstanding debts

PaulC5

Its probably more sensible to just pay it off and close the account.

Thinking about it the interest I would have got over 10 months would of been around £70-£95 depending on which tax bracket im in this year.

Its more of the fact we are saving for another house in the next 5 years and I want to save as much as possible but I guess clearing my debts in advance would help in the long run when we eventually apply for another mortgage.

I also see my savings as a safety fund as im a contractor so the future cant allways be predicted but this debt wouldn't break the bank.

Thanks all for your input.