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Original poster

Can anyone suggest why I might be refused a credit card, please?

57 replies

Flllightattendant · 03/01/2008 16:10

I have been trying to get one and applied online for two different ones, but been refused and it is worrying me!

I have a great credit record to my own knowledge - I owe around 2k on my overdraft (authorised, paying off steadily with the same bank I've been with for 15 years. I also have a loan with £4k remaining to pay, also with this bank.

I have never defaulted on anything, I missed one monthly minimum payment (which I always tend to pay off straight away usually) with La Redoute at the time I had my baby last summer, which was only about £50, so can't imagine that would count against me?

I've never had a credit card but was looking to use it for everyday shopping whilst paying off overdraft, to minimise interest.

Am now feeling very paranoid...Is this possibly the credit crunch I've heard about, or need I be worried?

Or is it because I'm a single unemployed mum?

Thanks for any thoughts.

OP posts:
Original poster
Flllightattendant · 03/01/2008 16:10

...the minimum payment was £5, total which I paid as soon as I knew, was 50 iyswim.

OP posts:
fingerwoman · 03/01/2008 16:12

if you're unemployed and already owe £6k then I would imagine that's why.

I am sure that someone will let you have one though, but beware, the more you apply for the worse it looks to them. so it's worth ringing places and asking if they'd accept you before actually applying

oxocube · 03/01/2008 16:12

My guess is its because you aren't working and/or have no working partner. Its only a guess though. Your credit history is WAY better than mine btw.

mosschops30 · 03/01/2008 16:13

FA if you have a large loan and a 2k OD should you really be thinking about getting a credit card for 'shopping'.

Not being patronising because ive been there many years ago with lots of cards etc and was a nightmare. I'm much more careful now and have one card but still stress about that one

If you are single and unemployed with these financial committments already how are you going to manage a card as well?

Islamum · 03/01/2008 16:14

Are you on the electoral roll? we got refused a mortgage because we weren't on it. You havve a right to see your credit record, ask the ccard company who they use, will prob cost you £5 to see your record.

WingsofanAngel · 03/01/2008 16:14

You should get a copy of your credit report.

If you make to many applications in a short period of time this counts against you too.

curlywurlycremeegg · 03/01/2008 16:18

I would say your employment status at the moment would be the deciding factor.

Original poster
Flllightattendant · 03/01/2008 16:18

Thanks for the quick answers

I know, I have been really silly with money over the last couple of years. But that is why I am trying to do this. It was suggested to me on here, actually! Someone said, if you get a 0% CC and use it carefully just for food/essentials etc. while your incomings are going into the bank and paying off the O/d quicker, it will save you money as long as you pay off the CC before the 0% period is up.

I am not quite sure how it works but I am paying such a high rate on my O/d that I really want to get it down. I have been paying off a lot and now look at my bank statements after a long time not looking...it's Ok, the last thing on my mind is to start spending on the CC for things we don;t need!!

Am going to keep paying off o/d but just trying hard to minimise interest.

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Lizzylou · 03/01/2008 16:18

Can you do without a credit card? Do you really need one? It sounds like you'll be using it to rack up more debt whilst paying off your overdraft, which doesn't seem to make sense.

I know it's hard, but if you do without a credit card, I really would.

If you already have debt and are unemployed then I'd imagine that that would count against you. If you really have to have a credit card, would your bank give you a card? Stop applying though as that counts against you.

Original poster
Flllightattendant · 03/01/2008 16:19

Ps by selling stuff on ebay and also not spending except on essentials, over the last 3 months I have managed to get the o/d down from about 4.5k, so it is all good

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FioFio · 03/01/2008 16:20

This reply has been deleted

Message withdrawn

Lizzylou · 03/01/2008 16:20

Sorry, cross posts.

It does make sense, I see that, if it's a 0% card, but personally I can't limit myself to "essentials" tend to see £1000 credit limit as £1000 to spend spend spend IYKWIM!

Original poster
Flllightattendant · 03/01/2008 16:22

No I'm not sure how to explain, at the moment I am using the ban account to pay for everything, and the interest on the O/d is huge, it is compound, and that means part of my efforts are being wasted in interest iyswim. I thought a 0% card for say 12 months would give the bank a chance to recover a bit quicker, if food shopping etc went on the CC instead of from the bank. Does that not make sense?

I really would not consider a credit card if I was thinking of borrowing MORE!

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noddyholder · 03/01/2008 16:22

Credit is going to be a lot harder to get this year.The news today says that of the 1.5 million people who try to re finance debt this year only 700000 will get the loans etc they need.It is the credit crunch so only the most credit worthy will qualify.

Original poster
Flllightattendant · 03/01/2008 16:22

X posts too!! Sorry

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Niecie · 03/01/2008 16:23

I haven't read all the posts so may have already been suggested but this happened to me just before Christmas. Turns out, when I phoned the CC Co. that they were checking that I was making payments as they noted more internet purchases than ususal. Since it was 10 days before Christmas and was for about £10 I was a bit miffed! There weren't even that many more transactions going through on my card anyway. One phone call and it was all sorted and the block came off.

Weird though.

mosschops30 · 03/01/2008 16:24

Sorry FA it doesnt really make sense. Can you ask your bank to freeze the interest on your OD if you are having trouble repaying it, which would help you

Niecie · 03/01/2008 16:25

By the way, I am not working so I have no income of my own(although I have a DH who is working) and I have been a couple of days late paying the last few bills although nobody even mentioned that.

WingsofanAngel · 03/01/2008 16:27

Wow that is some overdraft.

I would have said a low interest rate loan would be better if you wanted to pay it off. This may prove difficult with your current employment status.

I wouldn't recommend taking on more debt to pay off an old debt.

Would you have enough self control to just use a card for shopping.

Original poster
Flllightattendant · 03/01/2008 16:30

Oh Ok. I was sure someone on here suggested it. I have already cut outgoings and am making a huge effort which is why I've paid off about 2k since October. It's really encouraged me, I'm enjoying paying it off, it isn't a problem but I thought this might be a way to minimise the interest.
I don't think they would freeze the interest. All they would do is consolidate into a loan, which would cost me more in the long run as I can prob pay off the o/d within a year, if I've got sums right.

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Lizzylou · 03/01/2008 16:31

Keep doing what you're doing (you have paid so much off in only a few months!), I think that is the safest bet.

TheIceQueen · 03/01/2008 16:33

Also - don't forget that if you apply for more than one CC/Loan/etc in a short space of time that also starts to count against you.

Original poster
Flllightattendant · 03/01/2008 16:33

Sorry wings, x posted again (baby on lap!)

Yes, self control is my forte at present, I used never to go into my overdraft until a couple of years ago, when suddenly something went wrong and I was spending it like it was actually mine. Ridiculous.

It wasn't the person I used to be, and I used to lie awake worrying about it, but have now faced it and am sorting it out. I am amazed how fast it is improving, and glad to have found my old frugal self again.

I don't need anything and am selling lots of stuff as well. Tis a great feeling. I hope it lasts, I am going to get my o/d limited to enough for the rent once I have paid it off.

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LadyMuck · 03/01/2008 16:33

It might be worth talking to your bank to see if they can help. I wouldn't do any more online applications though because each one will show upon your credit history making it even harder to get credit in the future. But regardless fo the purpose for which you're going to use the CC I doubt you would get one without an income and with that level of outstanding debt.

WingsofanAngel · 03/01/2008 16:33

I would stick to what your doing now if you say you'll have it paid off within a year.