Dont Understand

jack_tyler

Hi people. Hoping someone can explain this for me. 
I currently have 3 credit cards, one with Lloyds, one with MBNA and one with Barclaycard. My credit limit on all 3 cards is good and I am no where near the limits. The Lloyds has an outstanding balance of £3.500, MBNA £1875 and Barclaycard £2,800. 
I would like to transfer the balance of the Lloyds and Barclaycard, to a 0% interest card. However when I do an eligibility calculator, of the cards it shows as having the longest 0% interest or lowest fee, it says I am not eligible. 
I have checked my credit file on Clear Score, and everything is fine there, my credit score is 893. So I have no idea why I am not eligible for any cards  I have never missed a payment, and always paid on time. So is there anyone who could possible explain why I am being refused. 
Thank you 

born_again

They are looking at affordability.
Your total current credit you have compared to your income.

Credit Score is never seen by lenders it is a made up figure by the CRA's.

molerat

A new card is taking on more credit and as you are probably only paying minimums on that relatively small outstanding balance with more available to you so it seems you are at the limit of affordability.  That is most likely the reason for no one wanting to give you more credit.

jack_tyler

born_again said:

They are looking at affordability.
Your total current credit you have compared to your income.

Credit Score is never seen by lenders it is a made up figure by the CRA's.

Thanks for that. I have a decent job and my income (after deductions) is £42,500 PA. If your credit score is never seen by lenders, then what is the point of it? and how do you prove that you have affordability? 
Its all very confusing 

jack_tyler

molerat said:

A new card is taking on more credit and as you are probably only paying minimums on that relatively small outstanding balance with more available to you so it seems you are at the limit of affordability.  That is most likely the reason for no one wanting to give you more credit.

Thank you 
How do they work out affordability? I earn £42,500 PA after deductions, and I over pay on all my cards, sometimes double. I understand what you mean by taking on a new card is more credit, but I would be closing the other 2 credit card accounts, once ive transferred the balances, so I would actually only have 2 cards. 

Ayr_Rage

jack_tyler said:

molerat said:

A new card is taking on more credit and as you are probably only paying minimums on that relatively small outstanding balance with more available to you so it seems you are at the limit of affordability.  That is most likely the reason for no one wanting to give you more credit.

Thank you 
How do they work out affordability? I earn £42,500 PA after deductions, and I over pay on all my cards, sometimes double. I understand what you mean by taking on a new card is more credit, but I would be closing the other 2 credit card accounts, once ive transferred the balances, so I would actually only have 2 cards. 

They don't know your intentions!

You will never know exactly why you have been declined, different banks will have differing criteria.

However living on credit and never paying off in full doesn't look good.

flaneurs_lobster

jack_tyler said:

born_again said:

They are looking at affordability.
Your total current credit you have compared to your income.

Credit Score is never seen by lenders it is a made up figure by the CRA's.

 If your credit score is never seen by lenders, then what is the point of it? and how do you prove that you have affordability? 

The point of a credit score is as a marketing tool by the credit reference agencies. They have convinced people that having a "high" score is good, getting a higher score is better. They suggest that a good way to "improve" your score is to take out more credit using one of the links to products that they have helpfully provided on their site.

They are, of course, paid commission by the product providers if you take the products.

born_again

jack_tyler said:

born_again said:

They are looking at affordability.
Your total current credit you have compared to your income.

Credit Score is never seen by lenders it is a made up figure by the CRA's.

Thanks for that. I have a decent job and my income (after deductions) is £42,500 PA. If your credit score is never seen by lenders, then what is the point of it? and how do you prove that you have affordability? 
Its all very confusing 

OK. You mentioned that " I am no where near the limits" what are these limits?
As that is the amount lenders are looking at.

daveyjp

Decent job and healthy income, but £10k of high interest debt at the moment, with, from the info about not being near limits, headroom to increase that figure.

If outgoings are higher than income lenders get nervous.  I'd be concentrating on paying down the debt asap.  Better to save than be a slave to credit card company debt.

grumpy_codger

jack_tyler said:

..... 
I currently have 3 credit cards, one with Lloyds, one with MBNA and one with Barclaycard. My credit limit on all 3 cards is good and I am no where near the limits. The Lloyds has an outstanding balance of £3.500, MBNA £1875 and Barclaycard £2,800. 
I would like to transfer the balance of the Lloyds and Barclaycard, to a 0% interest card. However when I do an eligibility calculator, of the cards it shows as having the longest 0% interest or lowest fee, it says I am not eligible. 
...

Have you checked that your existing cards don't offer you 0% BT? 
I have many and almost all have such offers.

retiredbanker1

£40k+ in income but nowhere do you state how much your outgoings are - do you have any savings?

It might be an idea to do a statement of affairs and head to the debt free forum on here.