0% deals dried up… is it because I went over 50% usage?

Capri84

So… I’ve got 3 credit cards, had them for years. Used them to flip the balance around and get 0% deals. 

Also have a couple of loans. Never missed payments, credit scores excellent

Now I keep seeing that credit scores don’t matter, and lenders use their own criteria etc etc… BUT - in recent times I no longer receive 0% deals. A note on one of the credit agencies notes that I am using more than 50% of one of the accounts - and this is indeed true. The balance is about 9k of a 16k limit. 

One of the credit agencies has a ‘simulation’ tool where you can re-run your score after adjusting different accounts. If I drop this account under 50%, the credit score does jump up. 

Does anyone have an experience of this? Could really do with a new 0% deal popping up

Altior

Two personal loans and multiple credit cards is a lot of unsecured debt. 

The score is made up, but it's based on your report. That's say that the variables they use to make up the score will still be reflective of your credit report. 

That amount of borrowing will likely limit your options for new cards. Ordinarily, you'd still get offers from time to time on the existing cards. As long as you have scope in the credit limits to use them of course. 

eskbanker

Are you stoozing and maintaining a balance at 0% while earning interest elsewhere, i.e. choosing to use 0% deals, or do you have no realistic means of paying it off and are effectively relying on 0% BT deals?

If you're in the latter situation and this is visible to lenders then they may be reluctant to lend more to someone not seen to be making adequate progress on debt repayment....

Hoenir

Capri84 said:

 Used them to flip the balance around and get 0% deals. 

Lenders can see this activity. If you are merely flipping and never repaying. Then it's possibly viewed as persistant debt. Lenders are under increasing scrutiny to ensure their lending policies are responsible. 

DullGreyGuy

no, have had over 50% utilisation and been offered other 0% deals. Each lender has their own rules and they change them as economic situations change. There have been plenty of times when people have been living on cheap credit and then things change and they can't get another deal. 

Hopefully that isnt you and you've the money in savings to pay it off