How to increase the chances of getting any credit card?

Alex9384

Please, only reply to this if you have an answer relevant to my question. I'm not interested in "just pay in full and you're fine". I'm asking WHY...

So, I like to take advantage of new credit card (and current account) offers. But I'm still not eligible for some of them.

People on this forum often say "just pay your CC balance in full each month".  That's what I always do.

But some also say "the lender thought they can't make any money off you, that's why you was declined".

Now, if I pay off my balances in full every single month, I'm not a profitable customer. Then why lenders would want to lend to me. I understand that paying off in full makes me look a low risk, but it also makes me look like non-profitable customer, or at best, they can make a little money off the transactions. Is that really enough for them?

I'm still not eligible for some cards, despite meeting their criteria (minimum income, etc.) and I have a perfect credit history with no late or missed payment ever in my life. Not near limits, never overdrawn, paying off cards in full (except those on 0% offers). The only thing I can think of is frequent moving (5 times in 6 years), but I've read somewhere on Experian that this doesn't matter as long as all my accounts are on the same address and I'm on the electoral roll.

jpsartre

The main point in paying off your balance in full every month is to avoid paying interest.

ceremony

How long have you held the accounts that you currently hold, and how many cards do you have right now?
Is it possible that your currently available credit is too high, and that's putting some lenders off?

Thrugelmir

Alex9384 said:

Now, if I pay off my balances in full every single month, I'm not a profitable customer. Then why lenders would want to lend to me.

Lenders make money on the spend you make. Retailers and service providers will be charged a % transaction fee of the value. 

Alex9384

Thrugelmir said:

Lenders make money on the spend you make. Retailers and service providers will be charged a % transaction fee of the value. 

I know but is this actually charged by Visa/MasterCard or by the bank itself? Or do both charge take some percentage?

Alex9384

ceremony said:

How long have you held the accounts that you currently hold, and how many cards do you have right now?
Is it possible that your currently available credit is too high, and that's putting some lenders off?

The oldest is a current account from 2014 when I first arrived to the UK. Most other accounts are from 2018. Barclaycard from 2019. Halifax CC May 2020 (without a hard search) since I already had Halifax current account from 2018 when applied for the card.
Currently 5 credit cards, using each of them every month. Two cards are on 0% purchase offer, so I don't need to care about spending on them, I have set up direct debits which will gradually reduce both balances to zero justt before their 0% periods end.
The credit limit of all my cards combined is now the same as my gross annual income. Actually it's 1000 more than my income, but I'll be closing one card with the lowest credit limit (1800) as they don't want to increase it even after my income increased and my other cards limits are around 6k.

MattMattMattUK

Alex9384 said:

The credit limit of all my cards combined is now the same as my gross annual income. Actually it's 1000 more than my income, but I'll be closing one card with the lowest credit limit (1800) as they don't want to increase it even after my income increased and my other cards limits are around 6k.

This is likely the main reason.

Nebulous2

Lenders vary - with different target markets. It’s very hard to qualify for them all.

They also like stability. Length of time at an address, length of time in same employment, length of time with some accounts.

They have a tendency towards home owners over renting and employed over self-employed. 

I have had over my salary in credit limits for at least 20 years, and at times I’ve had twice my limit. It doesn’t appear to affect me being accepted for cards. 

[Deleted User]

Alex9384 said:

Thrugelmir said:

Lenders make money on the spend you make. Retailers and service providers will be charged a % transaction fee of the value. 

I know but is this actually charged by Visa/MasterCard or by the bank itself? Or do both charge take some percentage?

Both. Issuer charges the retailer around 1.75% (called the interchange rate). Credit card network charge around 0.12%
People say pay card off in full to ensure lenders see you as a safe bet to lend to. If you already have 5 cards and have more credit than your salary, what exactly do you want? More cards for what reason? Stay in one place for a while and maybe close cards you don't need. Or just be happy with what you have and use the cards for the best way for you

Alex9384

MattMattMattUK said:

Alex9384 said:

The credit limit of all my cards combined is now the same as my gross annual income. Actually it's 1000 more than my income, but I'll be closing one card with the lowest credit limit (1800) as they don't want to increase it even after my income increased and my other cards limits are around 6k.

This is likely the main reason.

Thanks. Although Lloyds still offer me a card with £6.700 limit (at least they did a couple weeks ago).

Alex9384

Deleted_User said:

If you already have 5 cards and have more credit than your salary, what exactly do you want? More cards for what reason? Stay in one place for a while and maybe close cards you don't need. Or just be happy with what you have and use the cards for the best way for you

I want to close 2-3 of the 5 cards, just not yet... Just keeping the oldest 2 for the history (although one is also a travel card) and for having more direct debits. The other 2 are still on 0% period but when I pay them off I want to keep them for the same reason, at least one more year. And the fifth one is Amex, the newest one, almost all spending is going on it now, paying off in full.

I don't really want a new card right now, but I would like to know that if I want one, my banks trust me enough to approve it.
For example, NatWest is offering me a mortgage, an overdraft over £4.000 (currently have £500) and savings, but still not their credit card, the only product I'm actually interested in, for 1% cashback on all supermarket spend. Since I hold their Reward account, the annual fee would be waived for that card.

Also, I will be looking for a newer car in coming months. Some car dealers accept credit cards. I can afford to pay for the car, but would be better to have it on 0% CC and pay over 17 months or so.