Not eligible - what am i doing wrong...

simpson_77

Hi All,

Just after a bit of advise on what could be causing 80% of mainstream cards to be 'not eligible' when I do a compatibility search.

My Credit history is OK, when I say OK I have a default for £600 from Jan 2011, which was settled immediately, aside from that everything is in good order. I have a Natwest and Barclaycard CC and a 2 loans one with £9k outstanding and my old Nram together loan with £23k outstanding (even 11 years in!). I have a good income of £100k+ and a steady mortgage and address history.

When I do the check the only cards at 90% are Yorkshire and Clydesdale bank, followed by Marks and Spenser @ 60% and HSBC @ 50%. Everything else is 0%!

I wanted either the BA Amex card or Lloyd's Avios card, as I travel alot and want to get some extra points

Any help will be really appreciated

MallyGirl

have you checked your credit history with all 3 providers to make sure there is nothing lurking there? Are you on the electoral roll?

Clydesdale and Yorkshire came at the top for me which they never have before.

simpson_77

Yeah, with all 3 providers it just shows the 1 default with Capital one for £600 in Jan 2011 an settled immediately. On the electoral and only and at my last address for 7 years and the current for 2 years. It baffles me...

simpson_77

Ok, so i have done more research on my equifax report and see a default from BT in Jan 2011 for £16! looks like it was settled immediately. I wouldn't have thought this would make any difference?? In fact I will see if I can get it removed as the address its linked to was no 17 and I lived at 17b at the time

simpson_77

In fact, both the default and satisfied date are the 28th Jan

eskbanker

I suspect you may be downplaying the significance of the two defaults - immediate settlement may be an improvement over unsettled ones but having two defaults in the first place is unlikely to appeal to mainstream lenders, in terms of what it says about your ability to manage debt.

Looking at your situation from the perspective of a lender, if you're earning £100K+, shouldn't you be in a position to be making serious inroads into loans, especially one that's eleven years old?

simpson_77

You have a point about the defaults, I have lodged an appeal with Equifax to see if the BT one can be removed, as its £16, there must have been a mistake somewhere! According to Equifax, my last missed payment was 66 months ago which is the default, so nothing bad for 5.5 years. and its only the 2 defaults :cool:

I've not always had a high income, my net is £3,400 p/m and the rest is made of commission and bonuses paid quarterly. 18 months ago i was on circa £70k and a few years before circa £50k. I have 4 young children, a wife who doesn't work (because she is looking after the children) and outgoings which are relative to my income, coupled with always savings for something, house, car, holiday, furniture etc etc

My mission this year is to clear the Nram loan as much as possible, in fact my total unsecured is £39k. I'm not sure what debt to income ratio lenders use but this is probably part of the reason.:(

Arleen

That debt is about obr year if cmyou current take home - that is very scary amount to have, as it means that even with severe cuts in lifestyle it will take you years to pay it all back. And beside that you have defaults which makes it also a higher risk.

simpson_77

Ok, so I can clear £20k next month of the unsecured amount. I have a loan for £9k @ 11.9% I will pay off and put £11k into Nram which is at 9.6%. If I snowball the payment from the Natwest loan as an overpayment in Nram I'm looking at £600pm into Nram, Both credit cards are at 6.9% so can wait for a while. The defaults only have 6 months left. Where would i need to be so likely be accepted for one of the airline cards? I know its a random figure but any help would be really appreciated

Arleen

Getting the debt down and with defaults out of the way you should be good to go.

SLZ

simpson_77 wrote: »

My Credit history is OK, when I say OK I have a default for £600 from Jan 2011, which was settled immediately, aside from that everything is in good order.

I have a Natwest and Barclaycard CC and a 2 loans one with £9k outstanding and my old Nram together loan with £23k outstanding (even 11 years in!).

I have a good income of £100k+ and a steady mortgage and address history.

You have a default that's still on your file, American Express for example tend to be immediate declines with defaults, CCJs etc that are still present on your file.

Another issue is your credit utilisation £23k remaining after 11 years has to be a warning sign, especially with your income being around the £100k mark but I'd bet anything that it's the default.