Pre Approved Credit Card Application

atkinsons

I signed to the Credit Club and using the eligibility calculator I found out which cards I was likely to be accepted for. I was 100% pre approved for Barclaycard Platinum which happens to be where I'm a current account customer of too.

I've been declined because my affordability is weak. The whole purpose of a balance transfer was to improve my affordability by paying off the less than £1,000 I have on my credit card in monthly payments without paying all the interest that goes with it.

How do I improve my affordability if I can't take steps to improve it by paying my credit card off in above minimum payments without incurring the interest.

Are there other things I can do or perhaps another card I can try apply for. Now I've got a hard search showing on my report because of this.

Can I reduce the lending limit of my credit cards? Would that help?

Willing2Learn

No, do not reduce your limit as it could look as though you are experiencing financial difficulties. One search does not impact your credit file at all.

Is there any negative data recorded on your credit files?
Are you on the Electoral Register at your current address?
Have you moved recently?

[Deleted User]

Ignore the affordability charts and ratings - they’re not a real thing.

How do you know that you failed on “affordability”?

atkinsons

I complained to the bank and asked for a manual review and everything was looked at in detail and this was what they told me. It's my affordability, money in vs money out and the fact I have credit available on credit cards that I don't use but could hence I said should I lower my credit limit as I'm not using it.

atkinsons

Hi wiiling2learn no failed payments or bad debts, electoral register not been at my house 3 yrs but previous address is good too.

[Deleted User]

So on that basis what is your salary, outgoings, current cards and limits etc?

This is vital information missing from the post to help paint a picture

atkinsons

Hi Gary
I understand why they judge me as having weak affordability as I went through this with Barclaycard despite being pre-approved using the MSE eligibility checker.

My questions were how do I improve my affordability, I have money left over each month and infant have cut back on some unnecessary expenses like my personal trainer at £150 per month but because Barclaycard criteria is how much you have available credit (even if you don't use it) plus loans and mortgage they will only lend if your available credit is a certain % of your income

Therefore I asked:-

How do I improve my affordability if cutting down on household expenses does cut it
How do I apply for a balance transfer credit card for under £1,000 so I can pay only the outstanding balance and not the monthly interest as well

onlyfoolsandparking

You just apply, that's it!


Your overthinking the whole thing and whilst 'Eligibility tools' are handy for giving people an indication of which cards they are 'likely' to be accepted for its no guarantee and never has been.


What your asking (card for under £1000) is in no way unreasonable, so you've been declined on one card, so what! it's not necessarily a 100% reflection of your financial affairs, it's just ONE lender.


If it were me (and I've been in your situation albeit 20 years ago and things have changed A LOT!) I would try one more application maybe Virgin, MBNA and see what happens. If you get the desired result happy days, if not well that's unfortunate but not life threatening, try another application BUT leave it at least 6 months.


You will get there in the end, having decent mainstream cards, decent limits and plenty of available 0% offers is all about time elapsed in having cards overall, timing of applications as well as all the obvious factors of income, time at address, electoral roll etc.


In the meantime pay as much as possible on your existing card/s without of course negatively affecting your essential expenditure.

[Deleted User]

You’ve still not answered the previous question about income, outgoings, current limits, balances etc

atkinsons

Hi Gary
I don't need the affordability explaining as I went through the calculations and figures with my bank so understand how they in their example calculate it.
I think the advice from 'onlyfools' is helpful, I've panicked at the first rejection and it isn't like it's a life threatening issue. It will get paid off eventually and it's not a massive debt. I can see a financial future where I can change credit cards.

Ben8282

atkinsons wrote: »

The whole purpose of a balance transfer was to improve my affordability

How unusual. Most people apply for a balance transfer card to reduce interest. Never come across this reason before.

atkinsons wrote: »

I understand why they judge me as having weak affordability as I went through this with Barclaycard despite being pre-approved using the MSE eligibility checker.

atkinsons wrote: »

I don't need the affordability explaining as I went through the calculations and figures with my bank so understand how they in their example calculate it.
.

I find it strange that the bank actually told you that the credit card was declined due to weak affordability and that they went through a whole load of calculations with you, especially as you appear to only have a balance of less than £1000 which you wish to transfer.

atkinsons wrote: »

My questions were how do I improve my affordability, I have money left over each month and infant have cut back on some unnecessary expenses like my personal trainer at £150 per month but because Barclaycard criteria is how much you have available credit (even if you don't use it) plus loans and mortgage they will only lend if your available credit is a certain % of your income

Cutting back on your personal trainer will enable you to repay your debts quicker. It will not affect your ability to get credit as such.
Not quite sure what you mean by the comments about available credit. Are you implying that you have too much or too little?