Barclaycard CC eligibility

MrFrugalFever

Hi all,

5 years ago I entered in to an IVA (reluctantly) - Barclaycard was one of my creditors.

I am now slowly rebuilding my reports after discharging myself in October last year.

I regularly review MSE Credit Club, Clearscore and Credit Karma to ensure my details are fully accurate and up to date.

Today I have done a CC eligibility for a 0% spend / 0% balance transfer as I wish to continue to build a strong report of spending/paying back in full up until December next year when I will then process a mortgage application (IVA fully drops off in October 2023).

However, I have had the below come up - which baffles me as I would have thought any creditors I was involved with at point of insolvency would not want anything to do with me?!
 




Just to be clear, I have been provisionally approved by Barclaycard's own eligibility check, 


How likely is it that I would actually get this? Surely Barclaycard would entertain the application and then underwriters decline upon further investigation?

I am also worried that a Mortgage Lender will look at my Vanquis Credit Card account and think - he's only got that because he was in financial difficulty and had a poor report/history? Barclaycard is more mainstream and perhaps less obvious?

Thoughts?

RBYHS

Hi,
Barclaycard are pretty forgiving when it comes to past issues. 

If you’re interested, I’d personally apply and take it from there. 

No one cares what kind of credit cards you have as long as they are in good conduct. 

martinbainbridge1975

its not who the card is with it's how the account is managed.

had a couple of barclaycards over the years had no issues, as above they are forgiving, gave me a 27 month 0% a few years ago which I thought wouldn't be granted and got me out of debt

MalMonroe

If I were you I would not apply for that credit card because it says "you have been provisionally approved" and also that they can't give you the card you wanted. 

The only way you will find out for sure whether you will be accepted is if you apply - then they will do a hard search, which will show on your credit report.   

Barclaycard was one of my creditors and I really wouldn't have the nerve to apply for one of their cards. But that's just me.

I've had a DRO and after the discharge I applied for and was given an Ocean CC - it was owned by Capital One and issued for those of us who have been in serious financial difficulty. Since then I've moved onwards and upwards and hey presto!  I now have two credit cards - Virgin and Tesco. I got the Tesco one and then when Virgin offered 0% balance transfers I applied for a card and (to my surprise) was accepted by them. Both are now free and clear and the Tesco one is frozen for the time being. Both limits have been raised to £3.5k from £1.5k. Clearing balances every month shows lenders that you are responsible.

As RBYHS says above, no-one cares what kind of credit cards you have as long as they are in good conduct. 

Any mortgage lender is going to see your Vanquis card anyway and draw their own conclusions but if you have spent and paid on the card wisely, it's a sign that you are recovering and are back on track with your finances. If you apply for another card they may think you can't manage, are 'credit hungry' and a poor prospect. 

You also have, if your signature is correct, debt of £3,960 which would concern most lenders. And it appears that you also have savings, which you could use to pay off debt before you start saving again. The fact that you still have debt while applying for credit cards is a red flag to lenders. 

I'm also building myself up to apply for a mortgage after recovering from the DRO and I've learned from the wise money people on here that it may be a good idea to consult a mortgage broker in the first instance so that's what I plan to do. It's not a free service but from what I gather, it's a worthwhile expense.

Good luck with whatever you decide to do - but I'd really try to tackle that debt issue first. 

MrFrugalFever

Hi all, thanks for the responses.

@MalMonroe - you make some great points there. The debt I have is a personal loan that will come to an end (with some overpayments) by August this year, there is no other debt, my current CC is spent on then paid back in full each month (food mainly).

My alternative offer on BCCC was 12 months 0% as opposed to 24 months with a 2.9% fee to transfer if wanted and 12 months 0% purchase. It was the purchase I was particularly interested in.

I have a video call booked for 1 hour with NatWest on Wednesday to discuss the best way forward with my accounts, to be as attractive to a mortgage lender as possible. Like you I will be investing in a mortgage broker to hopefully get maximum benefit.

There is a moral thing here too, as you suggest, however, they’ve had thousands off me over the years in interest and as part of my IVA I actually paid back over 70% owing so a much better return than others I’m sure.

i had no choice but to put £4,000 in to my LISA just before April or I would have lost out on £1,000 bonus and then have my purchase pushed back a further year which I just don’t want to do because of timescales.

When you got approved with Virgin / Tesco was your DRO defaults still showing on CRA’s or had you waited the 6 years for them to drop off?

born_again

Who you have a card with makes not difference. To getting a mortgage etc. 

It will be the IVA that may cause issues, as it will still show on your credit history.

MrFrugalFever

born_again said:

Who you have a card with makes not difference. To getting a mortgage etc. 

It will be the IVA that may cause issues, as it will still show on your credit history.

Not after October next year.

Alex9384

MrFrugalFever said:

I am also worried that a Mortgage Lender will look at my Vanquis Credit Card account and think - he's only got that because he was in financial difficulty and had a poor report/history? Barclaycard is more mainstream and perhaps less obvious?

Thoughts?

As far as I know, lenders don't see what CC do you have. They see a credit card account, the date of account opening, credit limit, balances, payments, promotional rates, etc., but they don't see APR or whether it's Vanquis or Barclaycard.

[Deleted User]

I had a Barclaycard debt which never got paid back, dropped off my report about 8 year ago or so and I was approved for a Barclaycard Forward card last year with £1200 limit.

williewonder

I had a DRO in 2010. Managed my accounts very poorly until 2016 and started making progress by paying everything off. First Nationwide offered me a small overdraft and 6 months later was offered  a Vanquis card. Now have the Barclaycard Forward card with £1200 limit plus a capital One card with £1250 limit. Thinking about getting rid off the Post Office account and Vanquis card as they are still low limits