Perfect credit history required
In the current uncertain climate, many card providers have introduced increasingly stringent criteria when assessing applicants, and are now reserving their top deals for those with excellent credit scores - a situation not helped by the fact so many of the best balance transfer deals are drying up.
Take action
If you have been rejected for a balance transfer, you may be at a loss as to what to do next, as you could now face hefty monthly interest repayments. But it's not all bad news, as there are plenty of simple steps you can take to improve your chances of getting a competitive deal on a new card.
Limit credit applications
First off, do not keep on applying for more cards, as multiple applications to several lenders within a short period will show up on your credit profile - and may lead to some lenders refusing you credit.
Check your credit record
Before making any further applications, check your credit record. Read through your report and check that it is both accurate and up-to-date, as errors may prevent you from getting credit. Ask for mistakes to be corrected and for "explanatory notes" to be added to explain previous problems.
Clean up your credit record
If your credit record isn't looking too healthy, here are some top tips on how to improve your rating:
• Register on the electoral roll
• Set up a direct debit to ensure you don't miss
credit card payments
• Cut up any cards you no longer use
• Have at least one active credit agreement in place that you are reliably paying off
• If you've paid a County Court Judgement off in full, make sure this is shown
Prove your creditworthiness
If you are keen to prove to the banks that you are good enough to get their best rates, then taking out a card with a high interest rate and making small transactions whilst ensuring the balance is paid off in full, could improve your credit rating - and make it easier to get better products in the future.
Best buys
While the number of balance transfer cards has dwindled, and many of the longer deals have disappeared, there are still some good deals around. Virgin Money, for example, is currently offering 0% for 16 months on balance transfers with a 2.98% fee. This is the longest deal on the market and has a typical rate of 16.6%.
Don't despair
Remember that just because you are rejected by one provider, that doesn't automatically mean you'll be rejected by the next - different card companies have different lending criteria, though make sure you wait a month or so before trying for a different card.
Also note that if you're really struggling to get a new 0% deal, a good alternative might be a "life of balance" card which charges a low rate of interest until the debt is cleared.
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What to do if Rejected for a Balance Transfer Credit Card at http://www.confused.com/credit-cards
