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refused, credit score good, even the balance transfer offers on my credit card which I’ve had for years have been withdrawn??

6.5% set by employer, the rate is set by my employer and dependant on actual annual salary, I only work part time but if worked full time on my pay scale, I think it would be around 10%

I have a very different view to most on here, I'd imagine the majority would be horrified at the amount of CC debt I currently have (over £50k).
I work in finance and learnt long ago the benefit of money management. If I can get £20k CC 0% for 20 months with a 2.75% fee, I can absolutely use that money to make more £ than the fee has cost, some of it is in low risk, but still worth it, some is in highrisk so 'could' end up not working out. But its managed and considered.
I always find it odd how people are horrified at a few £k of CC debt but dont blink at a mortgage....

OP- as I said, I work in finance. As a general rule, it is easier to get credit than 2yrs ago, but fees (transfer or interest) have generally gone up. But, there's obviously many factors at play.
Once you get one 'NO' then it gets harder to get, so be mindful on the number of applications.
From what you have said, I would suggest your spending patterns would be a flag for your card providers, persistent debt can lead to a review and they dont like to see things like mortgage, council tax, electricity or water bills. They dont appear concerned enough to drop your limit or anything like that, but may feel you are more of a risk vs other customers.
They will be managing their risk profile as well, they want a mix of low risk and high risk customers as well to balance their books.

but just tried to increase my credit limit on my card recently and was refused,

Why were you applying for more credit (which got refused), when you “still got several thousand available in credit”? @winterblues25

the balance transfer and loan offers that were showing on my app a few days ago have disappeared

because you applied for them, and the bank refused you. Hence them not showing on your app anymore!!

new balance transfer card and loan applications refused,

My circle includes family, friends and colleagues across different income ranges, some are on 150k plus a year and some don’t work at all due to disability or caring responsibilities. My life would be significantly less rich without the people I know who earn less than 60k a year, they certainly have no fewer qualities than those I know who earn over that level, in fact one thing I’ve noticed among those in the higher income brackets is the expectation to for their children to achieve and the surrounding parental anxiety and micromanagement can be very intense, almost stifling, their children also seem much more prone to certain psychological issues. Those I know in the lower to mid range income brackets do seem significantly more relaxed and happier.
Just a quick google, apparently 26 % of 18 year olds from the lowest quintile (pre tax household income of below £9800 a year) now attend university, up significantly from even 10 years ago. I wasn’t able to get the exact figures for quintile 3 which is considered the average (around 37k HH income but it is a higher percentage than for quintile 1 ) and they still only have a minimal reduction in their maintenance loan

I didn’t apply for the balance transfer offer as I wasn’t planning to move the balance just yet, it’s not an application process for an existing card, it just tells you what the current offer rate is on your card and asks if you would like to transfer any balances. Loan offers are not showing but the facility to apply for a loan is still on there. I’m still receiving plenty of letters from my other bank asking if I’d like to apply for a loan and typical offers but have not put in any application with them yet as I don’t want to tarnish my credit record with applications if a possibility they won’t be accepted. Although when I look at my credit score with my bank it states I have a high chance of being accepted, the fact that I put in one application and it wasn’t granted makes me reluctant to put in any others, although it wasn’t a full application and possibly if I changed the payment length, amount etc it may be accepted. This is really why I wanted to know if people are finding they are getting less credit as then had decided probably not worth borrowing until credit availability had eased.

Thank you so much for the insight of this reply!! All our bills and our mortgage are paid via direct debit so there are not any utility bills on there but I’ll be more mindful of e.g having the asda shop on there then. It’s maybe us worth just making sure the big ticket items are put on there rather than paying for the bigger/non daily items with cash in the months we have cash spare, then keeping a float of cash in our current account to buy the food shop etc.
I can see someone reviewing our statement may get the wrong impression seeing I’ve paid for a 0.81 carton of milk from the coop with the credit card. Will definitely not put in any credit applications until I see more positive signs either. Considering DH consolidating the credit card balance into a loan too if he can get more favourable terms with being the higher earner

Thank you, No just on my own, think will be worth DH applying instead

She earns enough too for them to have the maximum reduction

Generally older people who have finished raising their children tend to be in a much better financial position than parents still raising young children, that is just life as it is, not down to financial management skills.
Come back to us in 5 years time and aside from severe misfortune I would be surprised if we had any debt at all, especially with the DSC finishing uni.
You consider yourself better off in many respects? Having grown up children is great but the time of raising young children is also quite precious, for us to be able to have a 3rd together has also been a huge blessing

It’s not smugness, your pearl clutching has been ridiculous, we have made a very conscious decision to have a relatively small amount of debt to enable us to use our income to invest in other assets. Many people hold debts for assets we have paid off e.g our cars, do you call anyone you know with a car loan smug for not walking around in the blind panic you think they should about ‘their situation’

Yes better off financially! Now I f I could just get my rare endocrine disease cured I’d be flying😢.

Why were you applying for more credit when you have “several thousands pounds left in credit”?

So in the above latest post you say you didn’t apply for a balance transfer

but in your first post you say you have applied and been rejected new balance transfer card and loan applications refused

Surely you can see why people are a little 🤔

And as for I”m still receiving plenty of letters from my other bank asking if I’d like to apply for a loan and typical offers but have not put in any application with them yet as I don’t want to tarnish my credit record with application”

Firstly, you are correct not to apply as you will very likely be rejected on the same ground your main bank has rejected you. Secondly you will continue to receive letters from all and sundry asking you to apply. Indeed the bank who rejected you was advertising offers on your app, which you applied for, was rejected, and now the offer has been removed.

@winterblues25
I will answer your question and not add to the pile on. My credit score is excellent. I have two credit cards which are both paid in full every month. One is used for personal spending and one for everyday family spending. Both currently have balance transfer offers. One 2.9% fee and 0% Apr. One 0% fee and 5.9% Apr. Could use up to about 95% of my credit limit for these offers (minus current balance).

My credit score goes down the more of my available Credit I use but I can see the reason for the change on the credit section of my banking app.

Well I do genuinely wish you the best for your health x

Thank you for your reply, it is insightful to know there are still 0% and low interest deals out there, Yes my credit score has always been good to excellent and has gone up recently, is via my bank, everything is ticked green except for the credit utilisation which is on amber and it states that’s the only thing that is preventing my score being higher. It’s been quite a while since I’ve wanted to apply for any credit as the balance transfer offer I originally took out was for 3 years. Although I had more debt when successful with last applying for credit, I’ve since closed down credit cards and accounts that I’d cleared the balance on so I suppose that makes my credit utilisation look worse, although having too much available credit apparently doesn’t look great either

No just a balance transfer on an existing card. The one ‘loan application’ was one of those, have a look and see what you could potentially borrow, not a full application. That’s why I wanted to research the credit landscape before putting in an official application which could affect my credit score. I remember when I applied for a loan to consolidate years ago when I played around with the amounts and repayment timeframes I was then accepted for what I needed at a favourable rate, indeed the rate went down significantly when I increased the amount I was asking to borrow! I hadn’t done that yet, I wanted to do this research first. I have since been back on the app and had more of a play around with the amount/repayment timeframe and it offered me a 12% loan but as the credit card we pay off every month has a 13% interest then thought may aswell leave that balance on there and use the cash we would of paid that for this month to pay the other balance which is switching from 5 to 24.9% soon. Then hopefully by the time the next balance offer balance ends on that card (different balances transferred at different times) then will have another look at credit score/loan applications.
DH might apply on the mean time as he has the higher income

Your husband has five children and not the income to support it, I think that’s a big challenge for your family.

you’re not going to get much sympathy here but maybe if you could speak to some debt counsellors then you would get some help in balancing and planning.

I am confused why you were applying for extra credit when you say you still have several thousand pounds of credit available to you @winterblues25 ?

they have refused you additional credit

And also your husband?

To transfer a balance coming to the end of its special rate balance transfer offer

No