How do lenders calculate affordability with existing CC debt?

lydriver

Just now I have around 11k on cards....if I pay the minimum each month the total is ~£230, but that could change when deals run out or if I did a balance transfer.
So how would they (lenders) get a total? Can they see the amounts you pay in your credit history? Do they know if you’re on a deal ...0% etc?

Thanks

[Deleted User]

They see your debts, limits, payments and whether a balance is on a promo.

Clairehaz

Some lenders may see the payments you are making now, but I doubt they’ll look very deeply into the details of if it’s on promo and for how long. All it takes is one late payment and you could have your promo rate removed by the other company. I imagine a lot of companies will generalise and take a set proportion of your existing debt just in case circumstances and offers change (Around 5% probably as that should be enough to cover the minimum payments of most lenders)

Alexd52

A minimum payment marker is reported to the credit reference agencies if that is all you are paying. Any organisation searching your files will see this

hobnobgti

I applied for my mortgage about a month before my 0% deal was ending on my card. At the time of doing the initial application because it was on 0% they didn't count it at all towards my affordability figures. I did tell them it was coming to an end (and obviously I didn't want to do a transfer as that would add a new credit application onto my file) but they didn't care and it was never mentioned again.

I always paid over the minimum amount, even if that was rounding up £68 to £70 say

Sharon87

Checking on my credit report it shows me whether I'm paying the minimum and how much I'm paying and whether it's on a promotional rate, so credit card lenders will also see that information.

I tried applying for new 0% credit cards with about 14k worth of debt and kept getting refused, I also had a lot of available credit as well (28-30k limit in total). I just increased my existing limits to get decent 0% rates