MBNA Declined Credit Increase

FrequentFlying

Hi there,
I was recently making a large purchase online to which my credit limit on my MBNA Card would not allow. So I called up MBNA and explained that I would like to pay off my remaining balance to clear my card so the payment would go through. That was a "no go" because the payment would not clear in time.

So I asked to increase my limit, to which they replied that I was declined. Looking forward, I am looking to take out a mortgage soon so am concerned that it will have affected my Credit Rating and eligibility to take out a mortgage... Is it the end of the world?

I'm hoping that its due to me only opening the account with them on the 06/2014. Looks like no flights at the moment, and a damaged credit history..

What can I do going forward?

Thanks, Max

grumbler

FrequentFlying wrote: »

Hi there,
I was recently making a large purchase online to which my credit limit on my MBNA Card would not allow. So I called up MBNA and explained that I would like to pay off my remaining balance to clear my card so the payment would go through. That was a "no go" because the payment would not clear in time.

Nowadays for most CCs payments by a bank transfer clear the same day.

So I asked to increase my limit, to which they replied that I was declined. Looking forward, I am looking to take out a mortgage soon so am concerned that it will have affected my Credit Rating and eligibility to take out a mortgage... Is it the end of the world?

... Looks like ...a damaged credit history..

This is just a credit search (if any) that has a very small and short-lasting effect: Credit Scores

MadProf

As a general rule of thumb, CC providers do not approve limit increases within 6 months of opening a new account. That's because they're observing how you manage the account before they entrust you with more.

The limit increase request would in all likelihood not have resulted in a credit check (has never in my experience), as lenders typically use internal historical data about your account management to make decisions on increasing it so you should be ok!

What is not ok for your potential mortgage though, is having a maxed out credit card balance. Presumably you'll have the means to pay the card off with more than minimum payments well before you get to applying for that.

FrequentFlying

Thanks for your replies grumbler and MadProf.

I was hoping that it was going to be an internal check, and that I was being a bit too keen to think it was a Credit Search. Being to over cautious.

The credit card is not maxed out, and it is always paid off in full every month, but I need to put some flights on my card for £2000, but I only have £1500 left free on my card.. & regarding paying it off early (Even though the DD goes Monday) It would take 2 business days for them to recognise that I have essentially added extra funds to my account/cleared off some of the debt. How does this work MBNA??

Fustrating... I think I just need to relax and not worry about it. Going to see what the letter in says in the post this week from them. Going to check on Experian too.

Its just annoying.. Punching myself for thinking that they would be accomodating to me..

Thanks Again,
Max

MadProf

Is this a special deal for flights or can you still get something similar on Monday?

I have not requested a limit increase from MBNA so can't say with certainty that they didn't do a search, or, wait for someone else holding an account to chime in with confirmation. As mentioned by Grumbler a few searches (< 3 in a 6 month period) rarely affect you long-term, if at all.

For reference, I just checked my MBNA account and even for FP it states:

Faster Payments via telephone/internet banking:

Please contact your bank to take advantage of this service. You will need:

(1) Your credit card number
(2) Our bank account number: 70328725
(3) Our sort code: 08-61-30

Providing there are no restrictions on your credit card account, Faster Payments made between 8am and 4pm, Monday to Friday, will be completed and available for you to use within 2 hours of us receiving cleared funds from your bank. Outside of these hours, or on a weekend/bank holiday, your payment will be completed and available for you to use by 10am on the next business day.

Payments will be reflected in your 'Available for Cash & Purchases' and 'Outstanding Balance' totals after 9.00pm on the day they are completed.

FrequentFlying

At the end of the day it is only a flight.. If it sells it sells - it's just business flights to NY for next week - just trying to be organised..

Leaving it until 7pm on a Friday is not the best time to book - thank will teach me! MBNA said that because it was after the 4pm, it would not be processed until Monday evening at the earliest, most likely Tuesday the account would be free again (1 full business day) - the Direct Debit should process Monday, so it wasn't worth worrying about paying now..

Beginning to feel the agent fobbed me off.. Never mind.

Thanks,
Max

MadProf

Don't sweat it! We've all been burnt by impromptu decisions (or in my case, procrastination) before.

MadProf

Sorry to chime in again.

I was just thinking if you fly regularly for business and your credit file looks spotless (no missed payments, CCJs, defaults) then perhaps it would be beneficial to attempt an application for an AmEx Gold Charge card (if the MBNA was the only other search in recent months). They're fee-free in the first year (£125 after that) and you earn mega points in the first year on travel spend (and MR points on all other spend too).

As it's a charge card there is no hard and fast spending limit although affordability calculations still apply based on how you manage your account so there -is- a soft-limit contrary to general perception. This may help you in future for this type of situation.

chattychappy

Two tickets? Could you split over two cards, or put one on a card and debit card for the other (if you have the funds)?

(I would only do this with an agent, not online in case you get one ticket but not the second. Particularly with business class I often find agents can do the same pricing if not better than online. Some will surcharge a CC.)

Also an agent could make a reservation and you could pay a few days later when the ticket is issued and you have released some credit.

blackbee045

Thank will teach me! MBNA said that because it was after the 4pm, it would not be processed until Monday evening at the earliest, most likely Tuesday the account would be free again (1 full business day) - the Direct Debit should process Monday, so it wasn't worth worrying about paying now..