credit cards for newbie stoozer

JenHen

As a newbie to MSE and the bright idea of stoozing, I've been swotting up on the subject for the last few weeks and am intending to apply for my first card shortly. However, I need some advice first. I've never owned a credit card in my life and am wondering if I may be turned down when I first apply and thus affect my credit history. I don't see any reason why I should be turned down, but I know that credit card companies will be looking for some kind of proof that I can manage debt.

My circumstances are good: regular mortgage payments, good job with monthly salary, no outstanding debts, no payment arrears, several savings accounts, never been turned down for anything involving a credit check etc.

I'm trying to gauge, if I can, what the likelihood of being turned down will be, what credit card companies are more likely to accept me and whether my 'virgin' status is likely to reduce the credit limit they may offer me.

I've sometimes had direct mail application forms through the post for the Lloyds TSB platinum card (I have a current account with them) and have recently been invited to apply for the Alliance and Leicester credit card (I applied for their current account/regular savings account deal). Do I stand more of a chance with these companies because I hold accounts with them or is there no guarantee that they'll accept an application from me just because I'm on their marketing lists?

Can anyone offer any advice from their experience of how credit card companies work?

PokerPortal

My experience: Credit card companies all work differently, but, lenders do like it if you have lived at the same address for some time (3+ years). For this you have to be on the Electoral Roll. What they also like is a long credit history. Having a credit card, preferably with a low credit limit, for some time with no arrears in payment will help with this. Having the same job for a while is good. Basically, they are looking for stability i suppose. But lenders can refuse anyone if they think that they are not going to make any money from you.

One more thing: before you apply for a credit card, request your free credit report from Experian and check it for mistakes and boost your confidence if it looks good.

Hope this helps. I am sure others will add their thoughts on this.

Clariman

Hi JenHen

Lenders like to see evidence of debt being managed, so having little-or-no credit history can be an inhibitor to getting future credit, because the lender has nothing to go on. You say that you have never had a credit card before but have a mortgage. Have you had any loans in the past ? If so, that will all help.

You say that you have savings. Unfortunately the lenders don't get sight of your savings - they just get to see what debts you have (or have had) as reported by the credit reference agencies.

As a LTSB customer, it is highly likely that they would give you a credit card (IMHO) and - provided you have some evidence of credit management, then I think you should be OK for other cards too. However - one other important factor is whether you are on the electoral roll at your current address.

You can check what is on your credit file by contacting the CRAs. It costs £2 for a statutory report which they will send you within the week.

Don't forget that you need to find a way to get the money into your bank account, so you need a card with SBT capability. LTSB cards don't have that but others do.

Clariman

YorkshireBoy

JenHen wrote:

As a newbie to MSE and the bright idea of stoozing, I've been swotting up on the subject for the last few weeks and am intending to apply for my first card shortly. However, I need some advice first. I've never owned a credit card in my life and am wondering if I may be turned down when I first apply and thus affect my credit history. I don't see any reason why I should be turned down, but I know that credit card companies will be looking for some kind of proof that I can manage debt.

Until she started stoozing earlier this year, Mrs YB had never had a credit card in her own name. She had, though, managed various other forms of credit satisfactorily as verified by her credit report. We also have a joint mortgage, and lots of stability with employment, bank, and home address etc. With 3 successful applications, she was very quickly up to 115% of salary stoozed.

You really need to get your SBT card organised prior to taking up an LTSB card (so you get the benefit of the full 9 months 0%). You might want to look at A&L (in fact any MBNA), Egg, or Mint, but make sure you read all the articles on here, and on the other stoozing website, so you're aware of all the issues.

Be careful not to apply for cards from the same provider. You can check out who owns who at https://www.stoozing.com/cards.htm

JenHen

Thanks guys, that gives me some ideas to work with.

I am on the electoral roll but have only been a homeowner and at my current address for just under 12 months. I hope that won't be a problem, however, as I've always been on the electoral roll wherever I've lived in the past.

I've never really had any other form of credit than my mortgage.

I think my first port of call will be A&L but I'll look into it first.

JenHen

asandwhen

Get a egg card first (for the mule) then take lloyds up on there offer - as you have a current account with them the limit is likely to be big - plus no balance transfer fee!!

smarmo

Yorkshire boy - interesting list of who owns what.

I have 2 egg cards, 2 HSBC , 2 HFC ,3 RBS, 2 HBOS, 5 MBNA and 2 Co-op.

...when did MBNA acquire Morgan Stanley....???

I'd say it doesn't make a lot of difference.

S

Clariman

smarmo wrote:

Yorkshire boy - interesting list of who owns what.

I have 2 egg cards, 2 HSBC , 2 HFC ,3 RBS, 2 HBOS, 5 MBNA and 2 Co-op.

...when did MBNA acquire Morgan Stanley....???

I'd say it doesn't make a lot of difference.

S

Hi smarmo

Thanks for pointing out the Morgan Stanley mistake. They certainly have not been taken over by MBNA !! I'll get the table corrected. You can't get the staff these days .

I would be interested to know which sub-brands you have and how long you have had them. While it is not impossible to get more than one card from the same organisation is is not so easy these days. MBNA used to routinely let people have 3 or 4 cards but not anymore. Anyone who had am existing MBNA card was refused for the Virgin card this year. HBOS also reject people applying for more than one card in may circumstances.

Clariman

smarmo

Clariman:

I've been at this since 1997 so really can't give you dates...but among my many cards are:

HSBC - First Direct & M&S.
HFC - Marbles & John Lewis
RBS - Tesco & Mint (oops, only 2 and not 3)
HBOS - Halifax, NSPCC and 2 Sainsbury visa (second a mistake on their part I think - I took out a genuine 10K loan to buy a car and they chucked in a 0% 10K credit card as well....amazing!)
MBNA - MBNA Plat, Virgin, Yorkshire (card now called something else), ryanair, homebase
Co-op - Smile (only the 1 as Yorkshire is MBNA).
Egg - 1 visa, 1 mastercard

Hope this helps.

Along the way I have been turned down by Nat West, Lloyds & Diners (who changed their minds and gave me a card in the end). Nectar keen to give me a card...no idea who runs that.

It's been a wonderful run. Do you remember the days when credit card cheques were deemed to be purchases? You just wrote a cheque and paid the balance by the due date and paid no interest. Thanks to Scottish Widows and MBNA for that one.

Happy days but coming to an end. Egg has been a nightmare recently, they have been charging me double interest during my anniversary offer (all sorted now). All I have left is 5,900 on MBNA & 9K on Morgan Stanley. A far cry from my £50K hey day but sooner or later it had to come to an end.

Regards.

S