Credit Card Shuffle

Elsterap

I have a lot of credit cards and they are all nearly maxed out. So I read Martin's article on the credit card shuffle and it said I should ring them up and ask for a better rate to transfer other balances to that credit card.


http://www.moneysavingexpert.com/credit-cards/cut-credit-card-interest#whofor

I just called up Llloyds credit card to ask if they could give me a rate to transfer other credit card debts to them and also to increase my credit limit so I could do that and then they started doing a credit check.


I ended up getting rejected, as I would expect because of my bad credit rating. Is a credit check always the case? Shall I only ring the ones where they are not completely maxed out and only try and get a cheap rate for their balance transfers? Will they credit check me too?

TheShape

If you're expecting to get rejected for further cards/credit limit increases then you need to start paying off the cards.

How many have you got and what rates are you paying?

Marcio45

I am afraid but because you are mostly maxed out it will be difficult for banks to increase your credit, as they will see you as a high risk. But it much depends on what cards you have, barclaycard being one of the most lenient. If you have bad credit - credit cards (eg capital one, aqua, vanquis) they dont normally offer decent balance transfer offers.
For balance transfers there is not normally a credit check but limit increases most probably.
Without wanting to be judgemental - i have been there - you probably need to start looking at the root of your debts and pay as much as you can on the higher interest rate cards.

Elsterap

I have been burying my head in the sand about it but now will try and pay off the highest rates first.

Thanks all.

Ben8282

Unfortunately, I am forced to agree that getting any of the existing cards to offer you credit limit increases and/or low rate balance transfers is highly unlikely at this time.

Candyapple

Elsterap wrote: »

I have a lot of credit cards and they are all nearly maxed out. So I read Martin's article on the credit card shuffle and it said I should ring them up and ask for a better rate to transfer other balances to that credit card.


http://www.moneysavingexpert.com/credit-cards/cut-credit-card-interest#whofor

I just called up Llloyds credit card to ask if they could give me a rate to transfer other credit card debts to them and also to increase my credit limit so I could do that and then they started doing a credit check.


I ended up getting rejected, as I would expect because of my bad credit rating. Is a credit check always the case? Shall I only ring the ones where they are not completely maxed out and only try and get a cheap rate for their balance transfers? Will they credit check me too?

You do know you can increase your credit limit and also check to see what offers you have on your card via online banking? No need to call them up and definitely no need for a credit check.

Lloyds and Halifax usually send out offers monthly for existing credit card holders via email and also post and these offers will also show up in your online banking.

Marchitiello

Candyapple wrote: »

You do know you can increase your credit limit and also check to see what offers you have on your card via online banking? No need to call them up and definitely no need for a credit check.

Lloyds and Halifax usually send out offers monthly for existing credit card holders via email and also post and these offers will also show up in your online banking.

A credit limit increase request, on the phone or online/mobile banking does trigger a credit check

Candyapple

Marchitiello wrote: »

A credit limit increase request, on the phone or online/mobile banking does trigger a credit check

No it doesn't. I increased my Halifax limit back in March and Lloyds a month ago - both online, both accepted. I obtain a paper copy of my Experian report every 3 months and get ClearScore and Noddle updated monthly free. There have been 0 credit checks/searches from the above in relation to increasing the credit limit.

bertiewhite

Why not get a loan to pay these off? I got a Tesco Clubcard Loan at 3.2% over 5 years to pay off 3 Credit Cards - I'm saving £150/month on repayments and I know it will be paid off.

Marchitiello

Candyapple wrote: »

No it doesn't. I increased my Halifax limit back in March and Lloyds a month ago - both online, both accepted. I obtain a paper copy of my Experian report every 3 months and get ClearScore and Noddle updated monthly free. There have been 0 credit checks/searches from the above in relation to increasing the credit limit.

That is not the case with a Barclaycard, NatWest/RBS, HSBC and Amex in my experience, but I also guess it may depend by the the initial internal profile status: e.g if you are already likely to get automatic increases, then they have already assessed that you can get further credit. If you are almost maxed out, and not preselected for further increases, I believe they would probably do an external credit check.

Bottom line, if the OP got credit checked by lloyds externally on the phone call application, he/she would have anyway if done on the app or online banking, there is no reason why on one channel it would work and on another it would not. The operator on the phone will simply fill the same form that you could do yourself on your app/online banking.