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  • FIRST POST
    • Col81
    • By Col81 14th Jul 17, 2:12 PM
    • 49Posts
    • 2Thanks
    Col81
    Tesco acceptance odd??
    • #1
    • 14th Jul 17, 2:12 PM
    Tesco acceptance odd?? 14th Jul 17 at 2:12 PM
    I have a credit score of 450 and i am in a DMP with stepchange i need cash in a emergency and have been accepted for a Tesco card which i now have with a £2700 limit. I have 3/4 defaults from 3 years ago too. Why would they give me this credit card when nobody else will? hopefully this is a sign that my credit is looking up and maybe my defaults are starting to lose effect. I am fully up to date with my DMP and all other bills.
Page 1
    • zx81
    • By zx81 14th Jul 17, 2:13 PM
    • 12,714 Posts
    • 12,958 Thanks
    zx81
    • #2
    • 14th Jul 17, 2:13 PM
    • #2
    • 14th Jul 17, 2:13 PM
    Because they have their own acceptance criteria and your credit score is no guide to anything.
    • minhp
    • By minhp 14th Jul 17, 2:14 PM
    • 15 Posts
    • 2 Thanks
    minhp
    • #3
    • 14th Jul 17, 2:14 PM
    • #3
    • 14th Jul 17, 2:14 PM
    I think each lender has their own lending criteria so credit score given by rating agency is irrelevant.
    • Col81
    • By Col81 14th Jul 17, 2:17 PM
    • 49 Posts
    • 2 Thanks
    Col81
    • #4
    • 14th Jul 17, 2:17 PM
    • #4
    • 14th Jul 17, 2:17 PM
    Why would i get one then when i have the above issues? i see this as achance to be sensible and re build credit a opening to respect
    • zx81
    • By zx81 14th Jul 17, 2:18 PM
    • 12,714 Posts
    • 12,958 Thanks
    zx81
    • #5
    • 14th Jul 17, 2:18 PM
    • #5
    • 14th Jul 17, 2:18 PM
    Why would i get one then when i have the above issues?
    Originally posted by Col81
    Because they have their own acceptance criteria. Which you have met.
    • Col81
    • By Col81 14th Jul 17, 2:19 PM
    • 49 Posts
    • 2 Thanks
    Col81
    • #6
    • 14th Jul 17, 2:19 PM
    • #6
    • 14th Jul 17, 2:19 PM
    It must be low!
    • StopIt
    • By StopIt 14th Jul 17, 2:20 PM
    • 760 Posts
    • 690 Thanks
    StopIt
    • #7
    • 14th Jul 17, 2:20 PM
    • #7
    • 14th Jul 17, 2:20 PM
    Why are you getting more credit when you're in a DMP?


    Aside from asking why you haven't built an emergency fund, why didn't you contact Stepchange and ask to drop your payments to pay for this emergency?


    If you end up paying interest on this, it'll be the opposite of being "sensible".
    • Col81
    • By Col81 14th Jul 17, 2:23 PM
    • 49 Posts
    • 2 Thanks
    Col81
    • #8
    • 14th Jul 17, 2:23 PM
    • #8
    • 14th Jul 17, 2:23 PM
    Because i need a clutch and flywheel on my car and i travel 22k per annum in my car it will be £1000 i have no choice
    • StopIt
    • By StopIt 14th Jul 17, 2:30 PM
    • 760 Posts
    • 690 Thanks
    StopIt
    • #9
    • 14th Jul 17, 2:30 PM
    • #9
    • 14th Jul 17, 2:30 PM
    Because i need a clutch and flywheel on my car and i travel 22k per annum in my car it will be £1000 i have no choice
    Originally posted by Col81

    1: If you haven't, get a second quote. Clutches are a common failure and prices vary wildly from place to place, shop around and do not accept the first quote. (Disclosure: While not automotive, I have experience with selling them!)


    2: Contact Stepchange and get an emergency fund saved up. No point in being "Up to date" with the DMP if a shock like this puts you back into debt.
    • jellie
    • By jellie 14th Jul 17, 2:39 PM
    • 821 Posts
    • 662 Thanks
    jellie
    Isn't it against the terms of your DMP to borrow more money?
    • DCFC79
    • By DCFC79 14th Jul 17, 2:42 PM
    • 29,745 Posts
    • 18,833 Thanks
    DCFC79
    Isn't it against the terms of your DMP to borrow more money?
    Originally posted by jellie
    As far as I was aware it's one of the conditions of a dmp.

    OP why not check with the debt charity your dmp is with that taking out extra credit is ok, if it isn't ask what your options are.

    OP I'm not sure a credit card is advisable for you, how would you make the repayments ? Surely that extra money has been saved up ?
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Col81
    • By Col81 14th Jul 17, 2:47 PM
    • 49 Posts
    • 2 Thanks
    Col81
    I asked why Tesco would give me the card thats all. I have done a soft search and no other provider will give me one.
    • StopIt
    • By StopIt 14th Jul 17, 2:52 PM
    • 760 Posts
    • 690 Thanks
    StopIt
    I asked why Tesco would give me the card thats all. I have done a soft search and no other provider will give me one.
    Originally posted by Col81
    They don't know you're in a DMP, and you passed their credit checks.


    However, a DMP is an instrument that is meant to pay your creditors in equal (relative to the debts owed), but (generally) lower payments than the contracted amount.


    Taking out new credit while on a DMP breaches this, because if you pay the new Credit Card in preference to the DMP payments, creditors can claim unfair payments and you can get the DMP called off entirely.


    If you don't tell Stepchange and this happens, you'll have to go Self-Managed and the chances of further actions by your creditors increases if they're unhappy with other creditors being preferred over them.
    • Col81
    • By Col81 14th Jul 17, 2:59 PM
    • 49 Posts
    • 2 Thanks
    Col81
    Well i have no choice if debters want to be clever they can call it off i wont pay another penny all they can do is give me a CCJ and i will be £12k better of by not paying it. So good luck to them
    • StopIt
    • By StopIt 14th Jul 17, 3:05 PM
    • 760 Posts
    • 690 Thanks
    StopIt
    Well i have no choice if debters want to be clever they can call it off i wont pay another penny all they can do is give me a CCJ and i will be £12k better of by not paying it. So good luck to them
    Originally posted by Col81

    You just stated you want to improve your credit viability in your OP, which means that you're contradicting yourself.


    How are you going to pay this £1,000 credit card bill off?


    If you have a budget surplus after the DMP, why aren't you saving it into an emergency fund already. if you have no surplus after DMP/living costs, how are you going to pay this off?


    You can't hope for your credit to be "looking up" and threaten to walk away from the whole thing at the same time. This is why taking out more debt in a DMP is never a good idea. Did you even contact Stepchange for advice when you faced this bill to begin with?
    • Col81
    • By Col81 14th Jul 17, 3:10 PM
    • 49 Posts
    • 2 Thanks
    Col81
    These are for me to sort. I came on here to ask about tesco not for a lecture.
    • Samsung_Note2
    • By Samsung_Note2 14th Jul 17, 3:39 PM
    • 44 Posts
    • 16 Thanks
    Samsung_Note2
    Well i have no choice if debters want to be clever they can call it off i wont pay another penny all they can do is give me a CCJ and i will be £12k better of by not paying it. So good luck to them
    Originally posted by Col81
    Damn i wish i had that attitude before i had no choice than go Bankrupt...

    No its good luck to you..they wont suffer for 6 years,they wont be skint and they wont be in the slightest bit bothered about you.
    • Fireflyaway
    • By Fireflyaway 14th Jul 17, 3:53 PM
    • 1,087 Posts
    • 1,101 Thanks
    Fireflyaway
    I think as the others say. Tesco obviously have certain criteria. I'm similar to you. 2 defaults also from 3 years back and similar score to you. Applied to Tesco and only got a limit of £250. Then applied for a 0% from Lloyd's ( my bank) and got it with a £1500 limit. I run my accounts well so they must have used internal info.
    I personally hate credit cards. Only got them as my file said not having one was a negative and I want a mortgage.
    • Col81
    • By Col81 14th Jul 17, 4:06 PM
    • 49 Posts
    • 2 Thanks
    Col81
    I am with Lloyds too i have a £1500 overdraft in place but do not use it, but they declined me for cards. So odd the way it is worked out
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