Confused about why I'm being refused credit

LisaMac

Maybe I'm being a dumbass but can anyone shed any light on why I'm getting refused credit? The old story; got myself into a bit of a merrygoaround with the credit cards I've had for years which are now charging at top interest so although I have direct debits set up for these cards I can only pay the minimum cos most of the payments are interest! I'm also at my credit limit for these cards. I haven't used the cards for a good while because of this. When I try to apply for a low rate loan or card to transfer these balances (£6,000 in total) I get knocked back. I have just done an experian and equifax credit reports and get a fair/poor rating but I can't see anything on the credit reports that could affect my rating to this extent. Has anybody else had this problem in the past? I'm at my wits end as I can't seem to get on top and I don't think that £6,000 is a lot of money to pay back! I feel like I have nowhere to turn.

Burlesque_Babe

Your problem could well be you are at the top of your available credit.

When you apply for a card, the lender will look at your salary and how much debt you currently have. They could well feel you are too risky to lend to when you already have x number of cards. More than 2 or 3 applications in 6 months will also add to a rejection as you would be seen as desparate.

£6,000 is a sizeable sum for most people and if you are struggling, then it is a lot of money to pay back. Why not pop up a Statement of Affairs - all your income and all your outgoings and we'll see if we can help you pay it back without another loan/credit card.

misspixierocktastic

Hi there i'm not certain
I do know that i cannot get any credit but debt mounts to about 19k
Someone who knows more should be along soon to help
Good luck

tigerfeet2006

Is £6000 a substantial chunk of your income? With the credit crunch lenders are getting nervy about lending money aspecially as you are maxed out, have several cards, making minimum payments and have fair/poor rating. If you have had a lot of serches as well it can spook companies. I would wait a while and try again.

While you are waiting try and find ways to increase your income. Have a look at the Up Your Income board.

LisaMac

Thanks guys for your instant replies. So nice to know there's folks out there that are willing to give their advice. Keren 29; I've done all the income stuff can't make any more cuts that I have. What I'm annoyed about is that I'm meeting my monthly payments presently so it's not like I couldn't make a one off monthly payment that covers all 3 cards. It irks me that I can't get over this paying off the interest part. I do have an alternative means of a 2nd income (Massage Therapist) but I can't get this off the ground as my therapit insurance is due end of december and I cannot treat anybody once my insurance runs out so I'm gonna have to find another £100 by the end of the month! I can't even get my overdraft increased just to cover this month as they credit score you for that! Unbeliveable! Any magic solutions?

poppy10_2

LisaMac wrote: »

can anyone shed any light on why I'm getting refused credit?

How about this?

LisaMac wrote: »

I can only pay the minimum ... I'm also at my credit limit

I wouldn't want to lend you any of my money

Theoretically if you take out a new card and transfer your £6000 balance onto it, you could spend another £6000 on your now paid-off cards, thus doubling your debt with no way to pay it off. I'm sure you wouldn't do that, but the credit card company doesn't know that.

LisaMac

It just seems silly that I'm paying off interest each month withoyut being able to pay off the balances of my cards but I see why I'm seen as a risk. I guess the only thing I have going for me in that respect is my earning potential and the equity in my house which I don't want to touch.

poppy10_2

LisaMac wrote: »

I guess the only thing I have going for me in that respect is my earning potential and the equity in my house which I don't want to touch.

This is one of the few instance when it would be wise to withdraw the equity from your house. You could pay off the cards and stop paying the extortionate interest on them.

As long as you then cut up the credit cards so that you are not tempted to spend on them again, you should be much better off in the long run.