Credit Card Application Process
Thebantamboy
Posts: 19 Forumite
in Credit cards
I recently applied (successfully) for a Credit Card but feel a bit disappointed in the way the process was handled which has ultimately left me unable to consolidate my debts as originally planned. Just wondered what are the views of the MSE community.
I have an existing card with approx £8k balance. I used MSE eligibility calculator for best balance transfer card and chose one with the company I have had a mortgage with for many years.
During the application process, I was asked if I wanted to transfer a balance and I filled in my current card details and transfer amount. I was informed this would be carried out automatically if I was accepted for the card.
Over the next few days, my application was accepted, I was sent details to register for online banking, received my PIN etc, and finally, my card arrived.
When I received the card, I noticed the credit limit was set at £6.5k (less than the transfer amount I had requested). I then received an email saying my balance transfer hadn't gone through automatically as it was higher than my credit limit.
I understand credit card companies have rules dictating credit limits but, had I known the credit limit wouldn't allow my to carry out the full balance transfer, then I probably wouldn't of proceeded with that particular application.
I am now in a position where I need to apply to another card provider if I want all my debt on 0% but I am worried what effect that will have on my credit score.
Any thoughts?
I have an existing card with approx £8k balance. I used MSE eligibility calculator for best balance transfer card and chose one with the company I have had a mortgage with for many years.
During the application process, I was asked if I wanted to transfer a balance and I filled in my current card details and transfer amount. I was informed this would be carried out automatically if I was accepted for the card.
Over the next few days, my application was accepted, I was sent details to register for online banking, received my PIN etc, and finally, my card arrived.
When I received the card, I noticed the credit limit was set at £6.5k (less than the transfer amount I had requested). I then received an email saying my balance transfer hadn't gone through automatically as it was higher than my credit limit.
I understand credit card companies have rules dictating credit limits but, had I known the credit limit wouldn't allow my to carry out the full balance transfer, then I probably wouldn't of proceeded with that particular application.
I am now in a position where I need to apply to another card provider if I want all my debt on 0% but I am worried what effect that will have on my credit score.
Any thoughts?
0
Comments
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You don't have a credit score, so no need to worry about that.
Your credit files will show the new account. The total debt won't be changing, so that should cause any concern. The main change lenders will see is the additional available credit.
You could look at closing the previous card down, but I would make an additional BT app before you do so.
Make sure you BT as much as you can to the new card - don't decline it.0 -
ZX81: Thanks for responding. For my benefit: what do you mean by 'You don't have a credit score'? Are you saying it is only the amount of debt you have, not how it is distributed?0
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The credit score a CRA gives you is a made up number, generated by a shake of a magic 8 ball. It means nothing.
Lenders make decisions based on the contents of your credit file, plus information such as occupation, income, etc.0 -
Whilst I can (and will) apply for another card to transfer my remaining debt to 0%, does anyone think that the process is flawed if they do not give you an opportunity to stop the application for a product which is not suitable based on the info you provide at the application process?
The 'unsuitability' of this product wasn't identified until the process was complete i.e. the card was in my hand. When I spoke to the card issuer, the lady seemed sympathetic and agreed to raise it through their 'improvement scheme' but just wondered if anyone had come up against this before??0 -
The only CC provider that I know of that will give you an indication of credit limit before actually committing to apply is Nationwide.
It is common practice across the board to set your credit limit and apr once you have actually applied and a credit search has been performed.
This works the same across most of the different financial products and is based upon a lot of different factors.
Put it this way, if you had put say, 50,000 as a balance transfer figure.... would you expect that to be honored?
Don't tale it personally, it's just the way this works. 6.5k is a good starting credit limit. Some providers are more generous than others but it's based on what they perceive as risk.
As previously mentioned, if you want to get the entire balance at 0% then just get another card. You may find that card will come with a higher credit limit so you can put it all on one card but then again, it could be lower.... you wont know until approval.
Good luck!0
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