AIB - Credit card application denied...

Xcellor · 26-11-2009, 12:52

I have two credit cards both of which have gone up in interest rates Perm TSB and Halifax. They used to be below 10% now they are 14%+ (like 50% jump...) I saw that AIB offer 8.5%.

I have a mortgage which I make regular monthly overpayments to, I have never missed a payment. One of my credit cards has 0 on it, the other has 3k but again I am making overpayments to that and have never missed a payment.

I have perm job (as perm as one can be these days) and make average money 30k+. I have no loans or any significant outgoings apart from mortgage, which I split with my wife, so I pay 400-500 a month.

So I applied and was rejected. Is it worth trying to find out why? Bit P*ssed off tbh. I'm trying to save money and shop around.
X

Jet Black · 26-11-2009, 13:39

It could be based on your borrowing ability.

The way its seen is you already have 2 credit cards. Say each card has a 5k limit giving you 10k. If they were to give you another one you would have 15k limit. You are not under any obligation to close the card. So they see it as outside your affordability.

Same for loan applications. The bank may be willing to let you have 10k but based on your current outgoings you could not afford 15k.
Loans and credit cards are pretty much the same.

Its worth appealing. Go into the bank and explain your intention is once you are approved for the new credit card to close another. You were looking to avail of a lower interest rate.

homer911 · 26-11-2009, 16:53

I would close the account with zero on it, get a letter from your current lender re paying Gov tax (which you will be charged on closure and you wont want to pay twice in one year) and then wait a month or two to reapply to ensure ICB has been update with your new status

26-11-2009, 12:52	#1
Xcellor Registered User Join Date: Feb 2004 Posts: 928 Adverts \| Friends	AIB - Credit card application denied... I have two credit cards both of which have gone up in interest rates Perm TSB and Halifax. They used to be below 10% now they are 14%+ (like 50% jump...) I saw that AIB offer 8.5%. I have a mortgage which I make regular monthly overpayments to, I have never missed a payment. One of my credit cards has 0 on it, the other has 3k but again I am making overpayments to that and have never missed a payment. I have perm job (as perm as one can be these days) and make average money 30k+. I have no loans or any significant outgoings apart from mortgage, which I split with my wife, so I pay 400-500 a month. So I applied and was rejected. Is it worth trying to find out why? Bit P*ssed off tbh. I'm trying to save money and shop around. X

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26-11-2009, 13:39	#2
Jet Black Space Cowboy. Join Date: Dec 2007 Location: Ganymede Posts: 1,161 Adverts \| Friends	It could be based on your borrowing ability. The way its seen is you already have 2 credit cards. Say each card has a 5k limit giving you 10k. If they were to give you another one you would have 15k limit. You are not under any obligation to close the card. So they see it as outside your affordability. Same for loan applications. The bank may be willing to let you have 10k but based on your current outgoings you could not afford 15k. Loans and credit cards are pretty much the same. Its worth appealing. Go into the bank and explain your intention is once you are approved for the new credit card to close another. You were looking to avail of a lower interest rate.

26-11-2009, 16:53	#3
homer911 Registered User Join Date: Sep 2007 Location: South Co. Dublin Posts: 972 Adverts \| Friends	I would close the account with zero on it, get a letter from your current lender re paying Gov tax (which you will be charged on closure and you wont want to pay twice in one year) and then wait a month or two to reapply to ensure ICB has been update with your new status