Declined credit card - excellent credit score?

Marchitiello

It sound like a HP agreement which is not unsecured (if you do not pay they get back the car).

Ben8282

A major contributing factor to this decline is almost certainly a high PCP balance.
I don't know if you have actually checked your credit files or are just going by the score, but the balance being reported for the PCP is almost certainly the total outstanding (including the balloon payment) amount due under the PCP agreement. This may be a very large amount of money.

chris9393

Ben8282 wrote: »

A major contributing factor to this decline is almost certainly a high PCP balance.
I don't know if you have actually checked your credit files or are just going by the score, but the balance being reported for the PCP is almost certainly the total outstanding (including the balloon payment) amount due under the PCP agreement. This may be a very large amount of money.

I'm currently 2 years into my 36 month contract for leasing my car. The end payment I believe is around £12,000, that is, if I wish to purchase the car which at this moment in time I am planning on doing.

I've just checked my credit files and although I'm not entirely sure what to properly look for, everything checks out 'OK' and there are no red flags pinging around. The only 'debt' my credit files show that I am in is the £1600 on my current credit card.

Is there something specific I should be looking for on my credit file?

verityboo

So the file should show approx £15K outstanding on the car (including optional final payment to purchase) and you have £5K limit on your 2 current credit cards. They are not interested in the current balance on the cards, only the limits because you could go on a spending spree tomorrow and run them up to the max

Nasqueron

Close the Halifax card and give it a couple of months, possible they simply won't issue you with 2 credit cards

Why do you need another card anyway? If you have £800+ a month spare then you will have no issue paying down the £1500 on the other card in the 16 months and you have a spare card for purchases.

Also, ignore the people blathering on about depreciating assets, if you are keeping the car and can afford the payments it's utterly irrelevant, it's only an issue if you want to sell it at the end

chris9393

Nasqueron wrote: »

Close the Halifax card and give it a couple of months, possible they simply won't issue you with 2 credit cards

Why do you need another card anyway? If you have £800+ a month spare then you will have no issue paying down the £1500 on the other card in the 16 months and you have a spare card for purchases.

Also, ignore the people blathering on about depreciating assets, if you are keeping the car and can afford the payments it's utterly irrelevant, it's only an issue if you want to sell it at the end

I will go ahead and close the Halifax account. I did try to do this but they insisted to me that my best option was to keep it open until I open up a new credit card. Now they're saying my best option is to write to them as to why I believe I should of been accepted and wait for an outcome before closing the account.

Regarding the car, the reason I will be purchasing it for the £12,000 is because the car will be worth more that than to sell on privately. I'd rather make a few quid than hand the car back and walk away empty handed.