Refused credit card but thought I had good credit!

elle_gee

I applied for a new Halifax (where I have a current account) credit card the other day and this morning got a letter saying I'd been refused on the basis of "..the information that I provided indicates that the level of credit I am currently committed to, in relation to my stated income, is higher than their present lending criteria allows".

I currently have the following:-
Nationwide Personal Loan £5.5k over 5yrs in March 2005, £107.62 a month
Nationwide Current Account No longer use but still open with a £1050 OD limit
Barclaycard Platinum CC Present balance £1200 (limit £2000)
Topshop Account 1 PB £0, (limit £300)
Topshop Account 2 PB £7.65 (limit £350)
Additions Account PB £0 (limit £1800)
Next Directory Account PB £0 (limit £3000)

My salary is £18,854 - £1,170 a month take home pay,

The reason I wanted the new Halifax card is that it's a good 0% balance transfer (3% fee) deal and I want to transfer my Barclaycard balance to it. Barclaycard should have been a 0% deal too but I stupidly missed the first payment (had the date wrong in my head!) and have been charged 14.9% ever since.

Should I close the store accounts I have, or request to reduce the limits and try again for the Halifax credit card? I've never actually been anywhere near the limits on those accounts; they're just the ones I was given. I've tried really hard recently to reduce all the balances to £0!

Any advice appreciated!

Ben1982

Give them a call on 0800 3896677, and tell them you'd like to discuss the declination.
That's what I did for my thread here.

jay78

You do have an additional £7,300 of available credit at your disposal that could have been taken into consideration even though the amount you currently own is low when compared with your gross salary.

Btw, even though they have given you a specific reason as to why they have declined you, do check your credit file to make sure everything is ok. That there aren't any dormant credit cards you have forgotten about.

OllyM

If you missed the first payment on your barclaycard, that won't have helped I expect. Have you looked at your credit report since?

exel1966

Seems pretty clear to me that they feel your existant available credit is far too high for your means.
It's not all about what you owe, It's just as important not too have too much available credit.
You have £6150 of credit you're not using or an overdraft you don't need.
Close all the accounts/reduce the overdrafts you have especially on those accounts you don't use. It will improve your chances.
A one off late payment will have a minimal if any effect on your rating.

elle_gee

I'm back!

I've cut both my Additions account and Next Directory account down to £200 credit limit each, so reduced my available credit by £5k. If I wait until this is reflected on my credit report (a few months?), should I then reapply for a 0% balance transfer deal and would I be more likely to get a positive response?

Thanks!

Tr@cker

Halifax offered me a card with no credit checks even though i have considerable unsecured debts but ive always kept my current account with them well topped up ( their high interest current account is pretty good) so doing this is a big help.

jamiex

I've got a current account with the Halifax and they didn't refuse me for a credit card, so this might be the key. I'm a student with no income at all, yet they've given me two 0% cards with £1900 and £1150 credit limit (not much I know, but it's enough for me). I think they gave me low credit limits because I have a nationwide credit card and current account, with about a £5000 limit on the credit card and £5000 overdraft on the current account. Neither are being used but it's still amazing they gave me the credit cards really.

I'd open a current account with Halifax, pay your wages in, and apply a month or two later. Don't apply a lot in a short period though because it can lower your credit rating.

elle_gee

I do have a Halifax high Interest current account as my main account; my salary gets paid in there every month and has done for the last approx 6 months since I opened it.

Unfortunately it is currently into the overdraft right now (boyfriend has bigger debt problems than me and i've been paying for most things just lately!) but I'm hoping to get that paid off in the next few months.