where has the credit gone?

[winterblues25]

I’ve usually never had a problem being accepted for credit but just tried to increase my credit limit on my card recently and was refused, new balance transfer card and loan applications refused, credit score good, even the balance transfer offers on my credit card which I’ve had for years have been withdrawn??

They’ve even withdrawn the balance transfer offers on the existing available balance, so they don’t mind me going out and spending and paying 24% interest on purchases but they no longer are willing to let me transfer from another card at the 4-5% rate they were previously offering

Ha, we have a lot of broke months, it’s not as if we’re spending money on much that isn’t essential or isn’t a case of trying to avoid a false economy

Op it sounds like you need to go in to your bank and discuss your debt repayments

I would guess with the number of times the OP has been asked the current balance and the radio silence, it must be pretty substantial.

Something is seriously wrong with your budgeting.

A credit card, should not be necessary for everyday essentials. I'd advise watching some Dave Ramsey and using the debt snowball to get all of your debt paid off ASAP.

Feel free to post your income and outgoings and perhaps we can offer some advice.

You'll never get out of debt by relying on credit cards.

Exactly

and if you’re only paying the minimum a month, that is going to snowball

so they don’t mind me going out and spending and paying 24% interest on purchases
What are you buying?

so they don’t mind me going out and spending and paying 24% interest on purchases

Up to the pre agreed credit limit. Which they are not extending.

You're not saying how much your balance is, which says you probably know deep down things have caught up with you. You'll have to do without it for a bit.

Or get a loan to pay it off.

Simple questions OP are:

1. what’s your current balance
2. Do you clear the balance each month. If not….

1. what’s the minimum payment each month
2. what do you pay each month
3. How much do you spend on the card each month

if you are hardly reducing the balance with interest added, they will take this as not managing the debt.

I don’t think it is that normal, maybe it depends where you are. I don’t know many people who have had significant family help, subsidised accommodation or low mortgages, probably because I don’t come from a background where that is normal. No one I know has lots of debt or pays for things on credit cards regularly. We have young children with high childcare costs. I think you need to get out of the mindset that lots of debt is normal, it isn’t and banks have got tighter with lending criteria.

If you’ve “paid off loads of debt in the last few years as well” they probably don’t want you to get into “loads” more.

So our total debt is about equivalent to 2 months of our joint income but unfortunately 95% of our monthly income goes on everyday costs. Personally for us it has been useful to have the credit available to e.g buy things when see them in the sale if know going to need them at a later date, have extra sets of school uniforms so if work is manic and kids ill etc and haven’t had chance to keep on top of washing for a couple or days then not panicking, to buy extra sets of gloves so if the kids lose a set they are not without them until we can get out to the shops etc. I do carefully consider each purchase I make and think would this be something I’ll regret when it comes to paying it off. We do overpay whenever we’ve had a bit spare as keen to keep our debt down and it is lower than it was when we first set up home. I suppose everyone’s circumstances are different, due to non debt related financial circumstances we do have a muchlower disposable income than a family with the same number of children renting who are on UC who don’t have significant commuting costs etc. However our finances have improved over the years which is why we’ve been able to reduce our debt and I’m always looking for ways to cut back that don’t significantly reduce our family’s standard of living.

I’m not looking to get into more debt, just transfer the balance on one or the cards we already have, we’re not in ‘loads of debt’ and we’ve never defaulted, had to ask for a change in payment schedule etc

Do you own or rent?

it wasn’t really people’s opinions on whether anyone should ever be allowed to borrow money that was my main question, just if anyone else had experienced their credit being choked without a change in circumstances/debt level?

It depends on the circs of each individual. So if someone shares this with you, it’s because they are in debt too

In an earlier post re your credit score you said it was rated good but mentioned your ' credit utilisation. This will affect your ability to apply for new cards etc, I know you havent mentioned figures on here but are you above 90% of your total available credit?, if so this could explain the issue.

If you're both higher rate tax payers it's concerning that you can't pay for essentials from your salaries

Do you have a plan in case one of you is unable to work for any reason?

Not my experience, sorry. I just took out a 0% balance transfer for 35 months which I was pre-approved for through Clear Score. Are you signed up to them and places like MSE? My credit score is excellent, but if it’s telling you that your credit utilisation is poor it means you’re probably maxed out on the credit cards you do have, which can make lenders wary that you’re desperate for credit.

I’ve never had a problem before even when my credit utilisation was higher, it says my credit utilisation is 67% at the moment, did have more loans/cards in the past but cancelled them when had paid them off

I work part time (decent hourly rate) and DH a higher rate tax payer but that doesn’t mean much nowadays (we actually have less than when I was a single parent on benefits) then I didn’t have any debt and actually had savings and a newer car etc! DH is good with money, just how it is these days. Yes we have critical illness, life insurance etc

Whether you own or rent will make a difference

Just phone your provider and ask if they can apply any offers. Do you have a credit card with your bank or is it a seperate company? I find we get the best offers from the bank we hold our current accounts with rather than anyone else.

I think the way you think about money is fairly alien to most people. You’ve spun a marvellous narrative about never defaulting on a payment and always making sure you can pay back the minimum payment for the last five years. What you really have is a situation where a family have been in debt for five years making minimal inroads to their repayment of a fairly hefty loan. They continue to spend 95% of their income on the basics (how is this possible with a high earner and a part time earner?) and owe 17% of their annual income.

wake up.

Stop spending to maintain a lifestyle you can’t afford and get on with getting rid of the debt.