Refused by Barclaycard - a problem?

dfarry

Hi all...

After Martins recent article I applied for the no BT fee Barclaycard as I have around £15000 stoozed at the moment. I was initally accepted but then received a letter stating that after re-evaluation my application had been refused. Its very much a standard letter stating that because of the other money I have borrowed they thing I will not be able to meet the payments..... obviously they don't know that I have the money pretty much ring fenced in my own bank account and off setting my mortgage.

Just before I applied for the Barclaycard I also applied for and have been accepted by Lloyds TSB and also Royal Bank of Scotland. As yet I do not know what my credit limits will be on these cards but I also have a Egg card with a 15K limit that I am just using for general purchases.

Add to this that my salary has dropped following redundancy in the summer to the extent that I am earning 14K gross less per annum.

So all things considered, I'm not surprised the application has been refused....

My main concern is whether this refusal is likely to have a detrimental effect on my credit history... any thoughts on this please?

YorkshireBoy

dfarry wrote:

My main concern is whether this refusal is likely to have a detrimental effect on my credit history... any thoughts on this please?

I'd say a bigger "detrimental" effect would be the 3 searches in such a short space of time.

Barclaycard could have seen the other 2 searches and thought - "desperate borrower".

Just on the RBS application - make sure you check your T&C's when thay send you the credit agreement, because they've just this week introduced a BT fee (2% max £49) for non-RBS current account holders.

dfarry

YorkshireBoy wrote:

I'd say a bigger "detrimental" effect would be the 3 searches in such a short space of time.

Barclaycard could have seen the other 2 searches and thought - "desperate borrower".

Just on the RBS application - make sure you check your T&C's when thay send you the credit agreement, because they've just this week introduced a BT fee (2% max £49) for non-RBS current account holders.

"desperate borrower" and they'd be right!!

Though not to supplement extravagent spending patterns... I knew the three applications would be risky but the Barclaycard deal seemed to good to refuse...

I have already signed an returned the RBS agreement over a week ago and should be OK there... although I seem to think it did have a BT fee anyway....
I don't mind the BT fee.... I'll easy save the money again over the course of say 9 months.

One problem however is that time is rapidly running out for me to do the BT accross to my NSPCC credit card (£7K)... I haven't received either the RBS or Lloyds card yet... I might call them today to check on progress and see if they can do a BT without the cards being issued as the current NSPCC deal ends on the 29/10/2005

grumbler

dfarry wrote:

...I also have a Egg card with a 15K limit that I am just using for general purchases...

Do you ever use such a limit for 'general purchases'? It counts towards your total available credit and affects your chances with new applications if this total available credit is comparable with your annual income ...

YorkshireBoy

grumbler wrote:

Do you ever use such a limit for 'general purchases'? It counts towards your total available credit and affects your chances with new applications if this total available credit is comparable with your annual income ...

You are correct, of course, but this is £15K guaranteed for the 5 month anniversary stooze.

dfarry

grumbler wrote:

Do you ever use such a limit for 'general purchases'? It counts towards your total available credit and affects your chances with new applications if this total available credit is comparable with your annual income ...

Hi there...

There is currently about £200 on the Egg card... I have only just started using it for general purchases...

These might add up to a few hundred pound each month but would also be paid back at each statement as my Egg introductory deal has now ended... I paid all the £15000 that I stoozed from them straight back as it was so soon after my redundancy.

dfarry

YorkshireBoy wrote:

You are correct, of course, but this is £15K guaranteed for the 5 month anniversary stooze.

Exactly!! :j

(assuming the terms are not changed)

dfarry

I haven't called Barclaycard since getting the refusal letter... but I may try to persuade them to reconsider....

I have however had my Credit limit from Lloyds - £5000 (much lower than my current Virgin and Egg cards). When I asked if they would increase it they said yes but would need to see three months of my bank statements - NO WAY!!! I did a BT of £4900 from Lloyds though...and at least they didn't charge me a fee.

To add incult to injury I then got my credit limit from Bank of Scotland..... a measily £2600... I haven't spoken to them yet but I am going to just cancel that card... whats the point of offering such a long 0% period when you can use it because of the credit limit.... I have had credit cards for many years now, never defaulted on a payment and have a very good credit rating... so my lower salary now and an apparent £17K of CC borrowing is obviously working against me - I think my stoozing days may be coming to an end especially with my Virgin offer ending in just over a month

CTT_2

[
To add incult to injury I then got my credit limit from Bank of Scotland..... a measily £2600... I haven't spoken to them yet but I am going to just cancel that card... whats the point of offering such a long 0% period when you can use it because of the credit limit.... I have had credit cards for many years now, never defaulted on a payment and have a very good credit rating... so my lower salary now and an apparent £17K of CC borrowing is obviously working against me - I think my stoozing days may be coming to an end especially with my Virgin offer ending in just over a month [/QUOTE]

You are only spiting yourself. Look they are giving zero percent and you have already been credit searched. If you cancel the only person to suffer is you and a wasted credit search.

dfarry

Yes I know.. i guess i am just frustrated because I can't move my stooze pots around now... still I'm not complaining as it has been money for nothing really

CTT_2

I have about 50k Stoozed away and recently transferred to Cahoot bonus account.
Pays 5.3 gross and requested interest monthly.
Best of luck