Eligibility checker when you already have debt on 0% interest cards

britchic4

I've searched because I'm sure this must have come up but I can't find anything that really answers it.

We currently have 2 interest free credit cards with £13k debt between them. We always pay a lot more than the minimum and do not spend on these cards. We have no balance on our 2 regular credit cards. We have £16k left on a mortgage for a house worth around £320k and we have lived here 4 years.

I'm scaling my business and I hope to be able to pay off those balances before the interest free period finishes. However right now cashflow is difficult because I have extra costs due to the scaling. So I would like to get another £5k or so. I have done the eligibility calculator and it gives me a 95% chance with Sainsbury's Bank, but there is nowhere to add current debt you already have which must surely make a difference to your eligibility?

My question - does anyone know if the eligibility calculator would be accurate in this case? I have a very good credit rating at the moment (I presume, since last year we got the 2 cards both with over £7k credit) and I don't want to mess it up. If need be I would rather remortgage than do that.

Thanks in advance for your help.

[Deleted User]

The hard search will pick up your existing debts.

The problem you have is that you look fairly high risk with low credit limits that are maxed out.

However, your mortgage is small which will help and it depends on how the rest of your history looks.

britchic4

Deleted_User wrote: »

The hard search will pick up your existing debts.

The problem you have is that you look fairly high risk with low credit limits that are maxed out.

However, your mortgage is small which will help and it depends on how the rest of your history looks.

Thanks for the reply. The rest of my history will be fine, but yes I understand we look a bit financially weird, since our credit card debt (even though it's interest free) is almost as much as our mortgage debt.

maxximus75

Your accounts will have rate markers so potential lenders will know your balance on the cards are at a promotional rate.


The upshot of it is that you won't really know unless you apply.



There are a couple of credit card providers that will give you an indication of possible credit limit and chance of acceptance using their eligibility checkers so that may help with your decision?


Halifax, MBNA (when the website is back online) and Nationwide all do this but you would have to go directly to their respective websites and enter your information.

britchic4

maxximus75 wrote: »

Your accounts will have rate markers so potential lenders will know your balance on the cards are at a promotional rate.


The upshot of it is that you won't really know unless you apply.



There are a couple of credit card providers that will give you an indication of possible credit limit and chance of acceptance using their eligibility checkers so that may help with your decision?


Halifax, MBNA (when the website is back online) and Nationwide all do this but you would have to go directly to their respective websites and enter your information.

Thank you, it seems as if it might be best to go and have a look at those.

Camelia19

Don,t trust the MSE eligibility calculator - it said I was pre approved 100% certain being accepted for the Vigin Money card. I applied and was turned down so now I am worried that this will have jeopardized my chances of being accepted for another card.

[Deleted User]

100% pre-approved or 100% acceptance chance?

Alexd52

Camelia19 wrote: »

Don,t trust the MSE eligibility calculator - it said I was pre approved 100% certain being accepted for the Vigin Money card. I applied and was turned down so now I am worried that this will have jeopardized my chances of being accepted for another card.

One more application should be ok, but if declined again, you would be best waiting a few months before any further applications.