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Over recent years i've taken advantage of 0% interest deals from various credit cards and have been able to bounce my debt around, no problem....... Until now.

Interest free period was up and was going to a 31% APR !!! So I contacted the card provider to see if they were doing any deals like 5% for life of the balance which i've seen offered in the past and would've been very happy with, but there was nothing on offer and I explained I would therefore be moving my debt elsewhere but they had nothing else to offer.

So I thought the easiest thing would be to get a loan. Checked out the cheapest deal online and applied and found yesterday that I was rejected.

Some other company phoned up to say that my details had been passed to them and that they would offer me a loan at 18% APR.

WTF ?

I own my home outright (mortgage paid off a few years ago), I have recently finished paying off 2 loans for my car and some home improvements so I would've thought my credit would've been good and credit card debt is the only debt I have left.

The only thing I can think of is that in the last year because of distractions like having a child or being on holiday there have been 2 occassions where (on a different card) i've been 1-2 days late paying.

Surely this wouldn't be enough to screw up my credit rating?

Obviously I will be getting hold of my credit report to see what's going on, but i'm rather suprised.

Anyone else being offered loans with credit card levels of interest?

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I seem to get post from MBNA offering me 0% on balance transfers (+3% fee, of course) on a weekly basis. But I haven't got a balance to transfer, so maybe that's why they are offering it? Seen to be doing it rather than actually doing it?

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you are not a good customer. records of many credit applications, but no defaults. banks unlikely to make money out of you - especially on zero percent deals!

no cheapo credit for you sonny jim until you get into debt....

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I used to get mails monthly from barclays offering me a £20k loan at 'competetive*' interest rates - stopped when i went into branch and complain, told them the only way i'd consider taking that out was if i was going to be leaving the country shortly afterwards.

*competitive meaning about 20x the interest they're paying on my current account..

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The only thing I can think of is that in the last year because of distractions like having a child or being on holiday there have been 2 occassions where (on a different card) i've been 1-2 days late paying.

Surely this wouldn't be enough to screw up my credit rating?

Obviously I will be getting hold of my credit report to see what's going on, but i'm rather suprised.

Anyone else being offered loans with credit card levels of interest?

Isn't it obvious? It's because you're a sh!t customer.

Why would they lend to you at zero % if you're just going to move the balance elsewhere at the end of the free period to avoid interest? What's in it for them? You aren't ENTITLED to cheap credit. These are businesses, and you've been effectively abusing their good will and special offers for your own benefit.

Setting up and running a credit card account for you for a year probably costs them about £30+, between paperwork, card issuing, statements, credit checks etc. Why would they want to throw away £30 on a customer who will never pay them any interest?

Stop whining.

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Over recent years i've taken advantage of 0% interest deals from various credit cards and have been able to bounce my debt around, no problem....... Until now.

Interest free period was up and was going to a 31% APR !!! So I contacted the card provider to see if they were doing any deals like 5% for life of the balance which i've seen offered in the past and would've been very happy with, but there was nothing on offer and I explained I would therefore be moving my debt elsewhere but they had nothing else to offer.

So I thought the easiest thing would be to get a loan. Checked out the cheapest deal online and applied and found yesterday that I was rejected.

Some other company phoned up to say that my details had been passed to them and that they would offer me a loan at 18% APR.

WTF ?

I own my home outright (mortgage paid off a few years ago), I have recently finished paying off 2 loans for my car and some home improvements so I would've thought my credit would've been good and credit card debt is the only debt I have left.

The only thing I can think of is that in the last year because of distractions like having a child or being on holiday there have been 2 occassions where (on a different card) i've been 1-2 days late paying.

Surely this wouldn't be enough to screw up my credit rating?

Obviously I will be getting hold of my credit report to see what's going on, but i'm rather suprised.

Anyone else being offered loans with credit card levels of interest?

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The only thing I can think of is that in the last year because of distractions like having a child or being on holiday there have been 2 occassions where (on a different card) i've been 1-2 days late paying.

Surely this wouldn't be enough to screw up my credit rating?

Obviously I will be getting hold of my credit report to see what's going on, but i'm rather suprised.

Anyone else being offered loans with credit card levels of interest?

Those late payments will be on your credit record. I suspect that is the problem.

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Over recent years i've taken advantage of 0% interest deals from various credit cards and have been able to bounce my debt around, no problem....... Until now.

Interest free period was up and was going to a 31% APR !!! So I contacted the card provider to see if they were doing any deals like 5% for life of the balance which i've seen offered in the past and would've been very happy with, but there was nothing on offer and I explained I would therefore be moving my debt elsewhere but they had nothing else to offer.

So I thought the easiest thing would be to get a loan. Checked out the cheapest deal online and applied and found yesterday that I was rejected.

Some other company phoned up to say that my details had been passed to them and that they would offer me a loan at 18% APR.

WTF ?

I own my home outright (mortgage paid off a few years ago), I have recently finished paying off 2 loans for my car and some home improvements so I would've thought my credit would've been good and credit card debt is the only debt I have left.

The only thing I can think of is that in the last year because of distractions like having a child or being on holiday there have been 2 occassions where (on a different card) i've been 1-2 days late paying.

Surely this wouldn't be enough to screw up my credit rating?

Obviously I will be getting hold of my credit report to see what's going on, but i'm rather suprised.

Anyone else being offered loans with credit card levels of interest?

Your situation is almost certainly due to those late payments last year. You will definitely not be able to get those 0% deals or anything near again, in the near future.

If you take the loan for 18% then at least it is better than 31% and then look around for a better deal...... as long as charges for paying that one off early aren't too high.

Perhaps 18 % is the true risk value to your debt now you have late payments on your credit report............. and we have to accept the days of cheap credit are coming to an end........ for some....

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Great first post DavE1. I'll be looking out for your contributions in the future! :)

Ha ha thanks..... hope you mean the second post and not the blank first one! B)

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Your situation is almost certainly due to those late payments last year. You will definitely not be able to get those 0% deals or anything near again, in the near future.

If you take the loan for 18% then at least it is better than 31% and then look around for a better deal...... as long as charges for paying that one off early aren't too high.

Perhaps 18 % is the true risk value to your debt now you have late payments on your credit report............. and we have to accept the days of cheap credit are coming to an end........ for some....

With Banksters luring Millions of their customers into repos in USA by making dodgy loans it must be making the credit scoring systems virtually redundant due to majority being forced to buy stuff by some card or another leading to no business being done if applying the criteria.

Or have they gone back to using notes?

How long before EXperian becomes useless as so many in the UK fail their criteria

(even the banks would be rejected - if forced to apply their own rules as punishment)

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Isn't it obvious? It's because you're a sh!t customer.

Why would they lend to you at zero % if you're just going to move the balance elsewhere at the end of the free period to avoid interest? What's in it for them? You aren't ENTITLED to cheap credit. These are businesses, and you've been effectively abusing their good will and special offers for your own benefit.

Setting up and running a credit card account for you for a year probably costs them about £30+, between paperwork, card issuing, statements, credit checks etc. Why would they want to throw away £30 on a customer who will never pay them any interest?

Stop whining.

I'm not actually complaining the 0% deals are no longer available, I fully expected the day would come, i'm just suprised my "get out" of replacing it with a cheap loan has disappeared.

And FYI - 0% deals are not free because they generally charge a fee of 2% of the balance to move it which should more than cover their admin.

"These are businesses, and you've been effectively abusing their good will and special offers for your own benefit."

Ah, I understand now. You must be a banker. :)

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I'm not actually complaining the 0% deals are no longer available, I fully expected the day would come, i'm just suprised my "get out" of replacing it with a cheap loan has disappeared.

Is it really a surprise?

So will MSE be full of people pleading with Martin to tell them where to move their freebie debt to next?

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With Banksters luring Millions of their customers into repos in USA by making dodgy loans it must be making the credit scoring systems virtually redundant due to majority being forced to buy stuff by some card or another leading to no business being done if applying the criteria.

Or have they gone back to using notes?

How long before EXperian becomes useless as so many in the UK fail their criteria

(even the banks would be rejected - if forced to apply their own rules as punishment)

I think that credit scoring will always be useful and used, as long as the underwriter using the system is any good and as long as the information on their systems is accurate.

I don't think we will reach the point where Experian will be useless for quite a while. There will usually always be a lender for every type of circumstance/applicant and Experian etc seem to be very good at matching the two up.

I have to say that despite what anyone says, in this country most people are credit worthy in one way or another but find it very hard to accept the rates they are offered sometimes even if it reflects the true risk a lender is taking.

I dont think we can compare what happens in the American credit markets to here from the point of view that they can walk away from their debts in a way which we cannot in this country.(Correct me if I am wrong on this point)

I am sure credit scoring is the same as it always was.... just with higher rates of interest to punish late payers who may have slipped through the net before and achieved better rates.

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Over recent years i've taken advantage of 0% interest deals from various credit cards and have been able to bounce my debt around, no problem....... Until now.

Interest free period was up and was going to a 31% APR !!! So I contacted the card provider to see if they were doing any deals like 5% for life of the balance which i've seen offered in the past and would've been very happy with, but there was nothing on offer and I explained I would therefore be moving my debt elsewhere but they had nothing else to offer.

So I thought the easiest thing would be to get a loan. Checked out the cheapest deal online and applied and found yesterday that I was rejected.

Some other company phoned up to say that my details had been passed to them and that they would offer me a loan at 18% APR.

WTF ?

I own my home outright (mortgage paid off a few years ago), I have recently finished paying off 2 loans for my car and some home improvements so I would've thought my credit would've been good and credit card debt is the only debt I have left.

The only thing I can think of is that in the last year because of distractions like having a child or being on holiday there have been 2 occassions where (on a different card) i've been 1-2 days late paying.

Surely this wouldn't be enough to screw up my credit rating?

Obviously I will be getting hold of my credit report to see what's going on, but i'm rather suprised.

Anyone else being offered loans with credit card levels of interest?

Why not write to Mervyn 0.5% king to see if he can lend you some at 0.5% ?

Seriously, I suppose you can just MEW to cover the credit card debts but please don't borrow on credit card again in the future.

[

Edited by easybetman

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I'm not actually complaining the 0% deals are no longer available, I fully expected the day would come, i'm just suprised my "get out" of replacing it with a cheap loan has disappeared.

And FYI - 0% deals are not free because they generally charge a fee of 2% of the balance to move it which should more than cover their admin.

Depends on how much you transfer. Also you need to include the cost to them of borrowing the money to lend to you in the first place. (Awaits the arrival of the MCLs....)
"These are businesses, and you've been effectively abusing their good will and special offers for your own benefit."

Ah, I understand now. You must be a banker. :)

Nope, I'm just telling you it as it would be from their viewpoint, as this will explain to you why you've been turned down.

Banks need recapitalise and that means optimising the profit they make from any capital they have. People with good credit ratings are competing for credit against people (often with lower ratings) who will pay more interest.

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Is it really a surprise?

So will MSE be full of people pleading with Martin to tell them where to move their freebie debt to next?

TBH - I expected the base rate to go up a while ago and was anticipating to have to pay more for my credit but while the base rate has remained at 0.5% I was still expecting/hoping i'd get a cheap loan.

I'm not going to eat 18% though. Damn, I may have to sell some of my gold :(

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TBH - I expected the base rate to go up a while ago and was anticipating to have to pay more for my credit but while the base rate has remained at 0.5% I was still expecting/hoping i'd get a cheap loan.

I'm not going to eat 18% though. Damn, I may have to sell some of my gold :(

If you have gold to sell,then why not do it and pay off your debt now. Surely it will be better than paying interest on your cc :unsure:

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Why not write to Mervyn 0.5% king to see if he can lend you some at 0.5% ?

Seriously, I suppose you can just MEW to cover the credit card debts but please don't borrow on credit card again in the future.

[

Oh man, lesson well and truly learned. Once this is paid off the banks are never getting any of my money again.

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If you have gold to sell,then why not do it and pay off your debt now. Surely it will be better than paying interest on your cc :unsure:

Absolutely. If I could've got a cheap deal I would've been happy to pay a small bit of interest rather than selling the gold but at these rates yes it looks like the gold will have to go.

And watch gold go to $2,500 a few weeks after I sell it.....

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I agree with the, "they've clocked you as a rate tart," people. A couple of 'lates' aren't going to stop people lending to you. The more penalty charges they can slap on the better as far as banks are concerned. Nope, they've twigged you have zero value to them, is all. ;)

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Absolutely. If I could've got a cheap deal I would've been happy to pay a small bit of interest rather than selling the gold but at these rates yes it looks like the gold will have to go.

And watch gold go to $2,500 a few weeks after I sell it.....

Paying off a debt is always the best option obviously. Then with all your extra money each month you could re-invest and hopefully make even more £ in the future.

At least the price of gold is high now, so a good time to sell..... but I completely understand you think it may go higher.... but who knows.... at least you would be debt free.

:)

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I agree with the, "they've clocked you as a rate tart," people. A couple of 'lates' aren't going to stop people lending to you. The more penalty charges they can slap on the better as far as banks are concerned. Nope, they've twigged you have zero value to them, is all. ;)

I just got 0% balance transfer for 17 months with Nationwide loads of offers still out there

Haven't paid interest on any debt for years now , they make the money on the balance transfer fee

and people forgetting to transfer balance at the end of the interest free period.

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And to avoid missing payments just set up DD for min payment and pay off what you can

at the end of the month

My investments are tied up and earning more interest than my minimal debt is costing me.

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I agree with the, "they've clocked you as a rate tart," people. A couple of 'lates' aren't going to stop people lending to you. The more penalty charges they can slap on the better as far as banks are concerned. Nope, they've twigged you have zero value to them, is all. ;)

I thought that CC companies make money every time you use the card through transaction fees applied at point of sale so even if you pay the cc off every month they still make money. I am pretty sure that the figure for people paying their cc off monthly is around 50% so this would point to the cc company making £ from such transaction fees, as technically these people pay no interest.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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