Cannot get credit and credit card interest is so much per month

[gingaling]

I have Barclaycard. Which I got years ago to build my credit rating, as struggled even 10 years back. I have no idea why I have a poor credit rating, but it seems I do. I've never not paid, but I have paid a few things like loans off early. I've had periods of running up debt and then paying it off as I'm self employed. I know my parents had a lot of debt and I did live with them for a while, but not in last 10 years. I'm on the electoral role, own a property with my partner.

So if I've never defaulted or not paid then is it just that I'm self employed on a low income. I have a joint overdraft that I'm in every months so would that be a factor? My overdraft I don't use every month. But I have the one Barclaycard.

So I wanted to get a loan or new credit card at 0% as the interest on credit card is £100 a month at the moment. I have about 7K on there 😖 but I was turned down 6 months ago, been earning more and turned down again. My wages are PAYE limited company, but the company is mine & Partners, so I have been putting self employed. Is this wrong ? I just feel I can't win. My partner seems to be able to get credit no problem, but he earns more also same limited company.

So is it just low income. In the past I've done an expedian check and it's been fine but when I apply I get rejected.

Maybe I should separate my personal bank from my joint account holding bank as both at the same one. Would that help or can they see everything when you apply.

I applied for credit card with my bank a while back, a loan with M&S about a year ago ( pre credit card debt) and to virgin last week.

Are any of the utility bills in your name, or are they all in your partners? Do you have a mobile contract?

We don't under stand credit card limits either. DH earning ££££ got turned down for a limit increase. Me, as an unemployed SAHM, got the increase we asked for. Same company.

If it’s a limited company on PAYE you are employed not self employed, try that instead ☺️

You are employed if you pay PAYE not self employed so make sure you put that, and how long you have worked at the company using the company name.
How close are you to your credit limit as they don't like you to have utilised more than 70% of the credit you have available.

It might be worthwhile giving Barclaycard a ring and ask if they have any interest free offers available that you might be able to use or certainly apply a lower interest rate, which would help in the short term.
Hopefully others will come along with more helpful information for you.

If you've a history of only paying a minimum payment off a much bigger balance you'll be considered a risk tbh.

Have a look at credit karma or clearscore. They suggest ways you can improve your credit rating and they’ll also suggest cards which you can apply for with a high chance you’ll get accepted.

Look at U-Switch online article "Credit cards for Self-employed". Applying for lots of credit cards will put lenders off. Consider joining a credit union. They give loans at low interest rates. Are you getting all the benefits you are entitled to? If you are self employed on low income you might get some Universal Credit. There are online calculators you can use to check this.

I think my barclaylimit is 9k so maybe I'm too close to it. I have made standard amount payments, and min payments then in the past cleared balances. It just depends on work. I'm always working though. I just registered for the basics experience again and said my score is 981 out of 999 ?

I do not have have my own mobile phone contract as on my partners, but only in the last 2 years. I couldn't get a new contract myself.

Most bills are in joint names as we aren't married. Gas and electricity is just in my name as I do the life admin and switches.

Would my parents situation mean a mark on my account ? I mean I got a mortgage 6 years ago, but anything else seems impossible.

@iwannascream thanks I will do that. It's a bit of a grey area being employed by your own company.

From what you say you have applied for quite a few things. This counts against you. Only apply for 1 thing in a year period at the most, so if applied for phone contract don't apply for anything else for 12 months whether you got phone contract or not.

If you have persistent debt then it’s generally viewed negatively, and carrying a balance on your card and using your overdraft would fit that description.

You can’t borrow you way out if debt, and if no-one’s offering you good rates then you may for now be at the end of the road for borrowing, so you need a plan instead to start laying the debt down.

Do you have any savings that you can put towards it, or have you used it to buy anything that you could sell?

Persistent debt and using close to your maximum credit will cause problems. They wont want to give you £7k on an interest free card, as the concern is you will then start using the card you just cleared. If you want to have a larger amount of credit available to you, you need to have applied for it when you didn't actually need it unfortunately.

Credit karma is free, it gives lots of info and advice and also shows how many things you ve applied for.

Download the debt repayment planner app (white bird carrying money icon) its free version is good, you put in the debts you have and the interest rates and it tells you the best way to pay them off. You can put in any payments made and it shows you in a visual way how long to get out of debt.

Few red flags there in the eyes of creditors.

Legally and financially you are employed not self employed so always state this on applications.

Never use your overdraft, they see this as negative and the interest rate is even higher than credit cards.

Don't just pay the minimum, add on £1 if you can't afford to pay more, it removes the minimum payment marker from your credit file.

If you've made a few applications, stop for a while, lenders don't like this.

But your parents financial issues will not affect you, only your partner as you have joint accounts.

I think Barclaycard do low interest offers for existing customers so the best thing to do is probably sign up for one of these and then stop using the card and pay it off as fast as possible.

If you can't pay it all off, you might qualify for a better deal elsewhere when the offer ends.

The other thing to look at is also your overall household budget and whether you are sharing expenses fairly with your partner?

If he earns more, does he contribute more to the joint household pot, because he should do.

Have a look at moneysaving expert for the budgeting.

www.moneysavingexpert.com/family/money-help/

from a credit perspective, overdraft is for banking logistics like a delay in a deposit or a check clearing early. It’s not a budgeting tool. It should only trigger once in a blue moon for something completely unexpected. It’s there in case someone else screws up so you don’t get hit with a ton of charges or have things denied.

carrying a large balance and making minimum or small payments is going to count against you. If you are carrying a balance close to your limit, that definitely is going to make you look like a credit risk.

Companies are not supposed to be allowed to evaluate you on anything but your own history so in theory, your family history, or your neighborhood should not have an impact, but it’s hard to guarantee that companies are not discriminating. I doubt that is the problem though, you describe enough in your posts to explain the denials.

You won't get a credit card because you're not paying off the one you've got and have a history of debt.
You're a risk to a credit company.

Stop relying on credit cards and start paying off what you already owe.