Financial Question

Stripes99

Hi, all help appreciated here, i applied for a top up on my loan and was automatically declined, i am now really worried that my bank will revoke my credit card and overdraft? Is this likely to happen? Im not in arrears, my cc is within its limit, but just worried,

Aint Eazy Being Cheezy

They won’t. They just declined you further credit, the agreements you have already still stand.

Stripes99

Aint Eazy Being Cheezy wrote: »

They won’t. They just declined you further credit, the agreements you have already still stand.

Thanks, im thinking that because it was automated decision on a Saturday it may not happen but seriously panicked after Christmas and everything, funds are low so this wouldn't be a good time if they did take it

coylemj

Stripes99 wrote: »

Thanks, im thinking that because it was automated decision on a Saturday it may not happen but seriously panicked after Christmas and everything, funds are low so this wouldn't be a good time if they did take it

You're seriously overthinking this. The bank has extended you certain facilities. Just because they decline your application for more credit doesn't mean that they will suddenly pull the rug out from under you.

You said your credit card is 'within it's limit' but you conspicuously failed to say that you pay the balance off in full every now and then, that's what matters. Are you running a balance from one month to the next i.e. is there always an amount outstanding?

And on your overdraft - are you permenently in the red in your current account?

If the answer is 'yes' to both questions, that's why they declined you more credit.

Stripes99

coylemj wrote: »

You're seriously overthinking this. The bank has extended you certain facilities. Just because they decline your application for more credit doesn't mean that they will suddenly pull the rug out from under you.

You said your credit card is 'within it's limit' but you conspicuously failed to say that you pay the balance off in full every now and then, that's what matters. Are you running a balance from one month to the next i.e. is there always an amount outstanding?

And on your overdraft - are you permenently in the red in your current account?

If the answer is 'yes' to both questions, that's why they declined you more credit.

No i am rarely in my overdraft, if i do go into it it is a day or 2 before payday, with my credit card i pay the minimum and most months pay a chunk off, but i do use it. And it hasn't been zero for at least 9 months,

Boardnashea

Ask the CCR for your credit report and you will see what info the bank were looking at when they made their decision.
Central Credit Register

Stripes99

Stripes99 wrote: »

No i am rarely in my overdraft, if i do go into it it is a day or 2 before payday, with my credit card i pay the minimum and most months pay a chunk off, but i do use it. And it hasn't been zero for at least 9 months,

Dipping into O/D is an indicator you're at your repayment capacity.

However, as above your existing credit will not be revoked.

I suggest you try to transfer your CC debt to An Post for 12 months interest free credit, and close your current credit card account.

coylemj

Stripes99 wrote: »

....... with my credit card i pay the minimum and most months pay a chunk off, but i do use it. And it hasn't been zero for at least 9 months,

The problem as the bank will see is that if they lend you more money, you will probably use it to pay off the outstanding credit card balance. Then you'll go on a spending spree and push the balance back to the level it was at previously. And you'll then be much worse off than before.

You're using the overdraft facilty as they would like you to, I don't see that working against you at all. But you need to discipline yourself to only use the CC for stuff you can pay for when the bill arrives - in full.

Stripes99

coylemj wrote: »

The problem as the bank will see is that if they lend you more money, you will probably use it to pay off the outstanding credit card balance. Then you'll go on a spending spree and push the balance back to the level it was at previously. And you'll then be much worse off than before.

You're using the overdraft facilty as they would like you to, I don't see that working against you at all. But you need to discipline yourself to only use the CC for stuff you can pay for when the bill arrives - in full.

I know and the second i hit "apply" i regretted it, but i just went into a panic and thought they will revoke everything, thanks for your reply,

Stripes99

Boardnashea wrote: »

Ask the CCR for your credit report and you will see what info the bank were looking at when they made their decision.
Central Credit Register

Thanks i will, i thought if it was an in house automated decision then they wouldnt have got my credit report that quick but I will check

coylemj

Stripes99 wrote: »

Thanks i will, i thought if it was an in house automated decision then they wouldnt have got my credit report that quick but I will check

I wouldn't bother. You were rejected by your own bank because you're running a balance on your credit card i.e. it was an inhouse decision. You clicked a button to apply for additional credit and were instantly rejected, that's how I read your posts.

If you think there's some mysterious external force in play e.g. there's a black mark on your CCR credit record that you're blissfully unaware of, you're just chasing shadows.

I would think your bank DID check your credit history, it doesn't need a human to peruse it. Your payment history, credit applications, current credit o/s plus a few other factors add up to a score that's "instantly" calculated and a loan decision Y/N based on that is processed very quickly. A human possibly makes the ultimate decision, but any credit application over €500 does go towards your future credit rating whether successful or not.

coylemj

[Deleted User] wrote: »

I would think your bank DID check your credit history ...

Maybe they did, maybe they did not. I suspect they did not because the OP's current situation with his own bank is such that they were going to refuse him anyway.

My point is that looking up his CCR record will be a waste of time. He can see the reason for the refusal in his last 9 months (or more) CC statements where he carried a balance from one month to the next.

Stripes99

coylemj wrote: »

Maybe they did, maybe they did not. I suspect they did not because the OP's current situation with his own bank is such that they were going to refuse him anyway.

My point is that looking up his CCR record will be a waste of time. He can see the reason for the refusal in his last 9 months (or more) CC statements where he carried a balance from one month to the next.

I really appreciate your response, thank you, yes i am an overthinker, and i have been having huge anxiety over this, i do hope they wont take it off me and i can start getting things back on track.