Pre Approved Credit Card Application

Verityspinelli

atkinsons wrote: »

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?

I’m clutching at straws here but I’m going to give it a go. The fact your current account is with Barclays and you got refused by Barclaycard could be because Barclaycard can see how you handle your current account. I wouldn’t worry about 1 hard search could you maybe try another lender? And did the Barclays branch advise you it could be your affordability? They usually know the reason, or have a good idea.

atkinsons

Thank you Ben for your response in picking my post apart I clearly didn't explain myself clearly. By affordability I just mean with 0% on a balance transfer it would enable me to pay the debt off quicker rather than the repayments covering the interest as well making my affordability improve in the future because I have cleared the credit card.

As I have not disclosed my financial situation on here you are not aware of my personal circumstances, my earnings, incoming and other outgoings so you do not know if I'm actually trying to get a credit card I can't afford to pay. You only know that the current balance on a credit card is less than £1,000

My cut backs means I have more disposable income each month and therefore means I have the ability to pay a credit card or loan repayment

I have too much available credit on my credit card so for example £4,000 credit limit, used £1,000 so have £3,000 that I haven't spent but Barclays still count it as could use £4,000 so yes I guess the bank are saying I already have too much.

As my post is proving difficult for you to understand Ben and your focus is more about pulling it apart rather than being helpful I'm happy for others to assist me
Thanks

atkinsons

Thanks verity
How the guy explained it was when they calculated my salary, my mortgage and other financial commitments that told them how much spare cash I had each month. They also asked how much credit I have available on cards along with loans / credit card balances owed, then calculated it as a % of my annual salary and said they couldn't approve another credit card. I explained I'm not using my credit card limit and wanted to transfer the small balance to % balance transfer to pay the debt off quicker. It's to do with responsible lending, I potentially have £4,000 I could spend then if they give me a credit card and I spend that balance too I might be in real big debt and not afford to make payments.

Sorry Verity, I hope this helps explain a little better.

I think you are right a couple of others on here responded to my post with helpful comments and advice... that it's only 1 lender and don't worry about the hard search. If applying again I should leave it 6 months and just carry on paying it bit by bit in the meantime.

[Deleted User]

People can’t help you unless you provide the information you’re point blank refusing to provide.

If you have plenty of disposable income why not just pay off the £1000 - it’s a meagre amount compared to others that post on here.

You’re being too cryptic in your responses with no good reason

A4445

It is really annoying when they say your pre approved and then declined. I try not to pay much attention to eligibility searches.

Your better off going straight to the lenders site. Mbna will give you a good idea if you will be approved and the estimated credit limit. Then if you want to go ahead you can. Nationwide have the same but you need to be a member so you may need to open a savings account first.

I appreciate you don’t want to put your finances on here and that ok. To increase your affordablity you need to either earn more or spend less on on main bills like mortgages and loans as you said they work you affordablity from this.

Also ignore Gary he is constantly on his high horse. I pay no attention to him like most do on here.

Ben8282

atkinsons wrote: »

I explained I'm not using my credit card limit and wanted to transfer the small balance to % balance transfer to pay the debt off quicker. It's to do with responsible lending, I potentially have £4,000 I could spend then if they give me a credit card and I spend that balance too I might be in real big debt and not afford to make payments.
.

£4000 total available credit on credit cards is NOTHING. You must have a VERY LOW income if lenders are thinking that you have too much available credit and might end up in real big debt. Most people with an established credit history have thousands and thousands of unused available credit. The optimum utilisation amount is 10% of available credit.

phillw

Ben8282 wrote: »

£4000 total available credit on credit cards is NOTHING. You must have a VERY LOW income if lenders are thinking that you have too much available credit and might end up in real big debt.

He said they asked him about other loans and credit cards, so it might not be low income but high repayments to other debts.

This is one of the ironies of 0% balance transfer credit cards, because they are additional borrowing then you have to have enough borrowing potential to be able to transfer a balance onto a cheaper deal.

I guess the argument would be that you got yourself into the situation, so you probably weren't keeping your eye on the ball financially & they have no idea if you've changed or not.

SnowTiger

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...

I think the fact you're faffing around for a £1,000 loan suggests you have affordability issues.

How much are you saving after all your cut backs? £200 a month? Throw that at your credit card debt and it'll be cleared by September.

Here's a payment scheduled for you from http://www.whatsthecost.com/loan.aspx, assuming an APR of 20%:



£50 interest. A third of what you paid your personal trainer every month.

Verityspinelli

Ben8282 wrote: »

£4000 total available credit on credit cards is NOTHING. You must have a VERY LOW income if lenders are thinking that you have too much available credit and might end up in real big debt. Most people with an established credit history have thousands and thousands of unused available credit. The optimum utilisation amount is 10% of available credit.

I quite agree Ben people with an established credit history will think £4000 is a low amount but for others £4000 is a lot, you will agree that a lot of the established borrowers also have a lot more debt then £4000 and tell themselves £4000 is not a great amount of money in the grand scheme of things but actually it is, it’s just that big borrowers with even bigger credit limits have become desensitised to such ‘trivial amounts’.

Not saying your answer was not helpful Ben I think you have been honest and tried to help but I think OP doesn’t want to hear how much available credit (potential debt) some people have been given by their lenders, it’s not relevant to him and all those those people that you speak of are always just one step away from being in a very different situation then they are today as are we all.

I like to think that there’s a saying that says «!having more available credit then your neighbour does not maketh the man!»

I think OP is stating that he is trying to build a more established credit history and to be fair some people don’t want to shout out their complete financial history from the rooftops.Talking about money for some is a very personal subject for them for whatever reason.

[Deleted User]

A4445 wrote: »

Also ignore Gary he is constantly on his high horse. I pay no attention to him like most do on here.

Nothing to do with being on a high horse.

It’s called being realistic and not dressing everything in unicorns and fluffy candy floss clouds.

People need to hear the hard truth.