Denied from Barclays - other options?

Discussion in 'Buying Tips and Advice' started by jsol92, Apr 20, 2010.

  1. jsol92 macrumors member

    Joined:
    Jan 27, 2010
    #1
    Hey everyone,

    My parents are getting me a MBP 15" i7 as a graduation present - I'm pitching in $500 and they're paying the rest. They aren't going to have the money in time for graduation, so they wanted to charge with Barclays and pay it off a month or two after they make the purchase.

    Their combined incomes is $120K/yr and they spent months getting their credit up before we purchased our new home in October '09...so I'd imagine their credit score is still doing well. We aren't in any debt. I don't know why they were declined :/

    Are there any other options for 0 interest credit towards the MBP?
     
  2. SchneiderMan macrumors G3

    SchneiderMan

    Joined:
    May 25, 2008
    Location:
    Apple state
    #2
    Income has nothing to do with it.. Personally i had very little income when American Express gave me a card but i have close to excellent credit and my credit balances are very low in terms of debt. Some credit companies look at history more then a score and so on.. Anyway try to open up a credit card with 0 interest offers, although right now a declined status affected your history so take that into consideration. Having other credit account with high balances can have a huge impact on getting new credit. Check and see if Bill Me Later has any Apple offers right now.
     
  3. flyfish29 macrumors 68020

    flyfish29

    Joined:
    Feb 4, 2003
    Location:
    New HAMpshire
    #3
    sometimes going into a local bank that offers credit cards will work. It is more personal, but unfortunately easy credit is much more difficult these days.

    I agree with SchneiderMan it all depends on current credit and credit history....you can have a crapload of income, but be a very high credit risk, and some people can have very little income, but their credit risk is very low.

    I would rec. doing a free credit report to find out why....someone may have done something with their credit accounts.

    Unfortunately the fact that you are in no debt (I assume you paid off the house in cash???) means you don't have a recent credit history. If you didn't pay the entire house off in cash, then you are in fact in debt.....any car debts....any student loan debts?
     
  4. jsol92 thread starter macrumors member

    Joined:
    Jan 27, 2010
    #4
    Ah, yes, we do pay have a mortgage of course :p
    That's it though - when we sold our old house we were able to pay off all other debt, so the only debt we're in would be the mortgage.


    Bill me Later does have an offer for Apple right now, BTW :)
    Hopefully we'll have better luck with that.
     
  5. Kingcodez macrumors 6502

    Kingcodez

    Joined:
    May 13, 2009
    Location:
    China
    #5
    Don't overlook the education discounts, printer, and the hopefully upcoming back to school sale.
     
  6. gnasher729 macrumors P6

    gnasher729

    Joined:
    Nov 25, 2005
    #6
    Actually, there are two things the credit card companies dislike: People who never, ever pay any part of their debt pack, and people who always settle their debt in full before they have to pay interest on it.
     
  7. flyfish29 macrumors 68020

    flyfish29

    Joined:
    Feb 4, 2003
    Location:
    New HAMpshire
    #7
    Yes, they may dislike me for paying my bill off every month, but I still continue to get multiple credit card deals each week in the mail so credit card companies really really *want* to like me!:D

    (The reason they dislike me is that I have only run a balance on a credit card two months in the last 20 years...and I charge 90% of my monthly bills to my credit cards which = lots of credit card points!:D In fact, I got 1/2 of my LCD TV and my PS3 FREE from Sony points!)
     
  8. mstrze macrumors 68000

    Joined:
    Nov 6, 2009
    #8
    Unless their mortgage payment is $10,000 a month, it seems like they should have enough to pay for a Mac without using a credit card....assuming they truly do not have any other bills, like you say.

    Maybe they just don't want to buy you this Mac? ;)

    And why are you talking about Barclays and mentioning their income in dollars? Isn't Barclays a UK banking/credit entity?:confused:

    I was able to easily get credit online thorugh the Apple Store for my purchase years ago. And there are many other credit card companies out there, if they truly wish to put this on credit...which is really sounds like they wouldn't have to unless they have other expenses/debts that you are not privvy to.
     
  9. andiwm2003 macrumors 601

    andiwm2003

    Joined:
    Mar 29, 2004
    Location:
    Boston, MA
    #9
    in a situation like this I would go for the low end MBP. 10% less performance for $400 less. that should solve your problem unless there is a specific reason why you need the i7.
     
  10. Kingcodez macrumors 6502

    Kingcodez

    Joined:
    May 13, 2009
    Location:
    China
    #10
    Come on, the kid clearly NEEDS the i7, we all do.
    I can't remember life before the i7.

    +1 for Bill Me Later, they had a good deal on some stuff awhile back it was interesting to do it like that.
     
  11. Linkzi macrumors newbie

    Joined:
    Mar 27, 2010
    #11
    Capital one and Chase has introductory 0% interest for a year. Unfortunately you will have to wait about 2 weeks for the card to arrive in the mail before using it. If you can wait 2 weeks, this will be the best route so you can use your student discount.

    Bill Me Later at the Apple Store is 90 days deferral and 180 days at www.BHPhotovideo.com. No taxes for BH (my favorite camera store) if you are outside NY and a small discount on the stock Macs.
     
  12. old-wiz macrumors G3

    Joined:
    Mar 26, 2008
    Location:
    West Suburban Boston Ma
    #12
    Absolutely the top 2 ways to get the credit card people to hate you. They hate me cause I only have 1 card and always pay in full every month.
     
  13. mstrze macrumors 68000

    Joined:
    Nov 6, 2009
    #13
    Again, how could parents with $120K/yr or $10,000/month gross income with ONLY a mortgage payment (which in the furthest stretch of my imagination has to be less than $2500) not be able to have $1500 available to spend in 2-4 week's time (assuming graduation is sometime in May)?

    :confused:

    The math doesn't add up...and the fact that they somehow can't get $1500 of credit is is raising a bunch of red flags here.

    There is something that your parents aren't telling you.

    Heck, why not just wait an extra 60-90 days until they have the money? You said they would be paying this off by then, ergo, they will have enough money saved within a couple of months to pay this in cash. You will still have your MBP before the end of the summer. :D
     
  14. old-wiz macrumors G3

    Joined:
    Mar 26, 2008
    Location:
    West Suburban Boston Ma
    #14
    Predator lending often will let them have a $4000 mortgage payment on a 10K monthly income.
     
  15. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #15
    :rolleyes:
    It's called predatory lending and it is not predatory lending if the payment on a house is $4k and monthly income is $10k. 40% debt to income ratio is really not bad nor is it predatory. While it doesn't take into account other debt, many banks like to keep it all under 40% debt to income. Sub prime lenders will go to 55% and you qualify for a sub prime mortgage if you have good credit but high debt or bad credit and marginal debt ... or any variation of the two.


    OP: If your parents do have such little debt there's no reason for a high interest rate card. If they were denied the card then perhaps they need to reevaluate their priorities and just say no to their kid who has less than half of the money to pony up himself for the computer.
     
  16. RaceTripper macrumors 68030

    Joined:
    May 29, 2007
    #16
    I don't think that's so cut and dry. I never carry balances on my credit cards (an AmEx, a MC, and a VISA). I put $3-5K a month on them but pay them in full by the due date, yet my credit score hovers around 800, give or take 10 pts. here and there. The only interest I pay is on my mortgage and one car loan. I get new credit for asking. I bought my MBP using Barclaycard's free cash for a year plan, but they aren't making a penny of interest from me; instead, I have the cash balance earning for me in an interest bearing checking account.

    I don't have too much debt, I never approach my credit limits, and I pay all my bills on time religiously. That's what gets you good credit.
     
  17. DesignerOnMac macrumors 6502a

    DesignerOnMac

    Joined:
    Jul 23, 2007
    #17
    Credit scores work ass backwards unfortunately! The more you owe the better your credit score is...go figure!

    You say your parents aren't in any debt, so that may be contributing to a low credit score.

    When I owed a lot on my ccs and mortgage, my credit score was almost 800. I paid everyone off and I have no debt, and my credit score is now 354!
    I can't even get a car loan now.
     
  18. jessep28 macrumors 6502

    jessep28

    Joined:
    Sep 8, 2006
    Location:
    Omaha, NE
    #18
    That methodology sounds pretty cut and dry to me :).
     
  19. SchneiderMan macrumors G3

    SchneiderMan

    Joined:
    May 25, 2008
    Location:
    Apple state
    #19
    If you have an outstanding balance, always pay more then the minimum allowed payment :) Keep your balances low. Lower then 70% of you credit limit will boost you credit higher and much quicker.
    If you use your card a lot make sure to pay you balances in full a few times.
     
  20. bornblind macrumors 6502

    bornblind

    Joined:
    Nov 19, 2008
    Location:
    Alabama
    #20
    Might have better luck going with a Best Buy CC?
     
  21. TiberiusXavier macrumors member

    Joined:
    Apr 18, 2010
    Location:
    Chicago
    #21
    Credit scoring models (each creditor has a unique calculation) does not get access to income or assets. The credit scoring systems usually access only accounts, inquiries, collections, and public records.

    Did they apply jointly or individually? If they have only one joint account (1 joint mortgage about 6 months old) and no other credit accounts (car loans, credit cards, department store accounts, etc.) then they have little information for a credit history. If they have had any collections or adverse public records (bankruptcy, liens, judgements) in the past 8 years, that will lower the rating tremendously.

    If they got rejected and a credit score was pulled, you should be entitled to a copy of the results.

    EDIT: One question, if they have such a high income, why do they need credit to float it a month? And if they have stock investments, they can use a margin account for a month (not zero percent, but it is tax deductible).
     
  22. mstrze macrumors 68000

    Joined:
    Nov 6, 2009
    #22
    That's EXACTLY what I have been asking.:confused:

    Such a high income and a singular expense (mortgage-per the OP) which is probably significantly less than the $4K number I was throwing around. (My friend has somewhere around a $350K mortgage and he pays $2800/month.)

    It doesn't make sense...especially when the OP said they can't get a simple $2000 credit line. Heck, with proof of $120K income, you can get nearly that much credit at the home improment centers like Lowes and Home Depot here in the US. Best Buy will do it for you too...and many times, they have offers where you pay no interest for a year or 18 months on major purchases like this.

    Again...there is something else going on here. I mean...REALLY...a recently purchased home after building up credit with no other debts and a combined 120K income and this family can't get $2K credit????

    You are absolutely correct. They should have this $1500-2000 easily accessible right now based on their income and expenses. Or the OP can wait a couple of months (if they really can't get credit for some reason) until the 'rents can save up the balance of the purchase prices sans the $500 from the OP.
     
  23. monokakata macrumors 68000

    monokakata

    Joined:
    May 8, 2008
    Location:
    Hilo, Hawai'i
    #23
    Barclay's has a big US presence. I have an airlines Mastercard that has the airline's name splashed all over it, but is actually a Barclay's card.
     
  24. mstrze macrumors 68000

    Joined:
    Nov 6, 2009
    #24
    Didn't know that. :) The big ones I usually hear about are Bank of America...(the one that handles most of the specialized (sports, college, etc) cards since they took over for MBNA), Chase, HSBC, Capital One, Discover, and Citi. I recently did some searching for other cards and had no Barclays come up. :confused:
     
  25. RaceTripper macrumors 68030

    Joined:
    May 29, 2007
    #25
    http://store.apple.com/us/instant_credit?mco=MTM3NDc1NjQ
     

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