Increasing my loan eligibility - how?

Dandalf

MorningcoffeeIV said:

No - never, ever, follow any advice that a CRA gives you.  Unless that advice is to not follow their advice.

Closing that account will tell lenders that only two other lenders trusted you with low limit cards and now one them has changed mind. After all, no-one in their right mind would leave themselves with a single low limit card out of choice.

Gotcha! Thanks, that does make sense. 

I'm at a bit of a loss then how I can improve my eligibility directly as it all seems out of my hands at this point, aside from paying off the remainder of CC1 but not closing the account.

amanda1024

There's obviously a big risk to securing debt against your home, but have you considered asking your mortgage provider if you can borrow more as an additional mortgage? Although since the mortgage is already quite a high proportion of your take home pay, it might be that it's the ratio of total debt to income that's the problem. Have you also looked at whether you'd be eligible for any 0% spend credit cards (with the idea to put as much of the work as possible on the credit card, and always pay the minimum monthly payments). 

MrFrugalFever

Lenders love stability and you haven't demonstrated that with so many changes in last 12 months.

Someone with a £48k pa salary having to transfer £3,700 to a 0% CC may also be another contributing factor.

Have you tried some soft search eligibility checks on the lenders main website? So for example, Tesco Bank are offering very competitive loan rates, have you tried checking with them directly?

I would absolutely keep your CC open, just spend a small token amount on it every so often to keep it active and pay off in full when statement comes in.

It may be a case that you accept a lower loan amount of find alternative methods of raising the cash.

enthusiasticsaver

It is probably the recent change of address and job.  Lenders like stability.  You might do better approaching your current lender. How much is your mortgage balance? You might be over committed given you have presumably a fairly large mortgage and approaching £4k of credit card debt.