Balance Transfer Application With Varied Credit History

sg3000

Hi everyone,

I have a question about applying for a balance transfer credit card with a 0% interest rate. The MSE calculator showing a high probability of me being able to successfully apply for a credit card but I’m concerned that my recent credit history may be a barrier.

I have approximately £4200 of credit card debt. Half of which is on a Natwest credit card with an interest rate of 11.1%. My credit limit was £4,400 but was increased last month by Natwest without prompting to £5,300. This card was opened in 2012.

The other half is on a Santander 123 credit card, with a 0% rate for 24 months. It was opened in May 2015.

I’m planning to transfer both balances onto a 0% balance transfer credit card. My salary is due to increase in April so I expect to be in a position to pay the balance off within 12-18 months.

The MSE eligibility calculator says I have a 95% chance of successfully applying for a number of balance transfer credit cards with 0% rates lasting in excess of 24 months with a minimal fee.

However, in October 2015, I was refused credit by EE for a phone contract and according to clear score, my credit rating is 479 out of 700. I have not missed any bill payments in the last 6 years.

I’m concerned that that as I’ve applied for credit twice in the last 12 months (Santander – May 2015, EE – October 2015), that I may be refused for a balance transfer credit card if I apply in January.

Has anyone been in a similar position and/or know the likelihood that I will be able to secure a balance transfer credit card with a 0% rate for more than 12-18 months with a minimum limit of £4,200.

Any assistance would be greatly appreciated.

Kind regards.
SG

sg3000

Hi everyone,


Just chasing to see if anyone has any thoughts on the above.


In short, my query is whether anyone with a recent rejection for credit and an average credit history been accepted for a 0% for 12-18 months Balanace transfer card with a minimum limit of £4,200.


Whilst the MSE calculator says I have a 95% chance of securing at least 4 cards, it doesn't consider my recent credit rejection or specify the maximum limit I might be able to obtain.


Can anyone help?


Thank you
SG

Candyapple

What's your annual salary?

Are you on the electoral roll?

Have you checked your Noddle and Clearscore files?

Any defaults, late payments, CCJs?

Do you have any other credit cards / loans /HP finance etc and if yes, what are their credit limits and what do you owe on them?

sg3000

Hi Candyapple,


Thanks for getting back to me so soon. Answers are as follows:


What's your annual salary?
- 22k, due to rise in April on qualification to between 27-32k.

Are you on the electoral roll?
- yes

Have you checked your Noddle and Clearscore files?
- Noddle - 4/5; Clear Score - 479/700

Any defaults, late payments, CCJs?
- No

Do you have any other credit cards / loans /HP finance etc and if yes, what are their credit limits and what do you owe on them?
- 1st Credit Card (owe £2,000/ £2,200 limit)
- 2nd Credit Card (owe £2,200/ £5,300 limit)
- Loan (owe £4,500/ £8,000 initially) - paid monthly instalments since April 2014.

Candyapple

OK, firstly your total credit lines are roughly 75% of your annual salary (not taking into account the rise due in April) so something to bear in mind as some companies can fail you on the affordability factor.

However generally speaking, no idea why EE refused you, have you ever had a relationship with them in the past that turned sour? Sometimes it just so happens one phone company may reject you and the rest will all accept you (assuming nothing appears amiss in your credit history).

No-one can predict the likelihood of you being accepted for a 0% card - just apply and see what happens. Two searches in one year is nothing. A further search will likely be a blip on your credit history temporarily. MBNA are the ones who will be likely to offer you a high limit so try and apply with them first.

Good luck and keep us posted.

sg3000

Hi Candyapple,


Many thanks for your detailed advice.


I applied for an MBNA card with 0% on BT for 39months and was accepted with a £5000 limit! Excellent stuff. That will save a lot of money in interest payments over the next couple of years.


Thank you for all your help


Kind regards
SG

msallen

sg3000 wrote: »

The other half is on a Santander 123 credit card, with a 0% rate for 24 months. It was opened in May 2015.

I’m planning to transfer both balances onto a 0% balance transfer credit card. My salary is due to increase in April so I expect to be in a position to pay the balance off within 12-18 months.
SG

If you still have about 16 months left at 0% on your Sant 123 card, and you expect to have paid everything off within 12-18 months, then why waste money on the fee to transfer the balance from the Sant 123 card to the new MBNA card?

sg3000

I see your point msallen but if the salary increase doesn't come and I have an expensive emergency (e.g. boiler breaks, car accident, flood damage etc), then paying everything off within 12-18 months goes out of the window. I'm just thinking of the worst case scenario.


The BT is more to cover the Natwest CC @ 11.1% interest. I've worked out I'm paying around £23 in interest based on a current balance of -£2500). After the BT on this card, my balance transfer fee will be the equivalent to 3 months interest, so after 3 months, I'm saving money I would have otherwise spent on interest payments to Natwest.


I'd like the have the Sant 123 with 0% on purchases in case of emergency and in the knowledge that I can get a little cashback on a petrol and shopping. At the moment, I don't have that peace of mind because its almost maxed out.


I think that all seems sensible?