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New Card, Old Credit

Just Getting Started

New Card, Old Credit

Hi All,


First posting here, it's possible this may have been answered somewhere back in time, but I'm not up for dredging back through ancient history so be kind, pretty please?


So, here's the situation:


1.  I have a World Mastercard with unused credit of over £4,000 on it (balance of x, credit limit x+4,000)

2.  I would like to use that unused credit to get a new Balance Transfer card so I can BT from another bank and save myself interest at 28% or so.

3.  Phoning the Customer Services people I'm told I must apply for the BT card first, then apply for the unused credit limit to be transferred.

4.  Applying online I get refused because the system treats my application as looking for more credit, looks to Experian etc and sees a high credit usage so gives it the big no-no, therefore no BT card, therefore no recycling of my existing credit!


Is there any way round this?  I'm not looking for more credit than I already have, just a reallocation of the existing stuff in order to reduce my overall indebtedness quicker by killing the interest on another card, meaning my payments go to knocking down the balance and not adding to the other banks profits!


An old school bank manager would look at this, see what I was doing and realise it made a lot of sense, is there someone in the Tesco Bank hierarchy with the discretion to make this happen, or am I condemned to chipping away with most of my payments going to interest?


As an aside - the online application states as one of the criteria that you cannot have applied for a card in the last month, the refusal notice says an application will not be accepted for 6 months, which is right?


...... and breathe ......



Star Contributor

Re: New Card, Old Credit

Good morning @Kirriepete,


Sometimes Tesco Bank offer promotions on Balance and Money Transfers.


I appreciate it means calling up again but if you speak to one of the advisors it might be worth seeing if there's anything for you at the moment?


You may well get a letter in the post in terms of being declined for a new credit card with Tesco Bank; something worth considering is appealing the decision?


There, by rights, should be an address to write to; I'd include any supporting documents to prove you're able to meet the repayments on your balance transfer etc.


As for the final paragraph in your post you'd be unable to apply for a Tesco Bank credit card again; I'd assume if you attempted a further online application in that time the system would 'remember' you leading to another refusual.




Re: New Card, Old Credit

Hello @Kirriepete, I'm afraid we don't have any way around this. I can only suggest re-applying in a month or so once your balance has decreased. I'm sorry I can't be of anymore help with this! 

Thanks for your input here too, @chaddman30 Cat Happy

Just Getting Started

Re: New Card, Old Credit

.... and there we have the classic Catch-22 situation.  To get a BT card I need to reduce my balance (even though it's currently £4,000 below my credit limit), but to reduce my balance significantly in a few months I need a 0% BT card so the payments made against interest elsewhere can be diverted to Tesco.


So, although I have a long history with this bank, never missing a payment, never going over my credit limit (a limit which has been raised by the bank from not a lot to quite a sizeable amount over the years) and I now have managed to get a large-ish gap between borrowing and limit, I am not allowed to redistribute that available credit across to another card, bringing more business to Tesco from another bank, saving myself interest, making it possible to reduce my balance quicker.  All because "the computer says no".


Applying in a month or two won't make a blind bit of difference as (a) the refusal notice says 6 months and (b) because of the interest elsewhere I won't be able to make much headway into my balance, here or there.


And my wife wonders why I get a bit ranty at the world from time to time.


Thanks for the replies guys, looks like I'll be working on the payments for a few more years yet.

Star Contributor

Re: New Card, Old Credit

Good evening.


Fully appreciate your frustration when you're trying to transfer a balance so you can reduce interest and make sizeable repayments towards settling your debt.


Understand it'd be easier for you to open another account with Tesco Bank so you could redistribute your credit limit but have you used the soft search facility on Money Saving Expert:


Granted it'd be subject to further checks but it might give you an idea if you'd be eligible for a credit card elsewhere.


Sorry I can't be of more help.