First time CC

TheEffect

I'm 18 and decided to get a CC to help my credit rating. I applied for a Lloyds TSB AirMiles card as I've banked with Lloyds for a few years now so thought it's best to go to my own bank first as they know me, however they declined my application.

I have 3 credit searches on my report and no previous credit history. My rating is 520 - Very Poor with CreditExpert (Experian).

I decided to apply for the CapitalOne Classic as it's probably my best shot at getting a CC.

I applied online and they said they'd write to me in the next few days etc...

Do I have a good chance of being accepted with them, even if it is a low limit with very high APR?

Also, how do I set up a direct debit to pay off the card each month and will this definitely pay the CC before it's due date (Don't want to incur charges)

Should I put small purchases such as iTunes purchases and the occasional purchase in shops onto the CC, or should I put things like my contract mobile bill onto it (Phones not in my name BTW)

Just trying to get a little more knowledge of Credit Cards. Hopefully I'll get accepted by Capital One.

davethorp

If capital one knock you back, you may want to look at barclaycard initial as it's meant for people with little or no previous credit history. However be careful about applying to too many as your searches will knock your credit rating.

Best bet is to put a few small purchases on it and pay balance off each month. Eventually you'll get a limit increase and/or other providers will start accepting you

TheEffect

davethorp wrote: »

If capital one knock you back, you may want to look at barclaycard initial as it's meant for people with little or no previous credit history. However be careful about applying to too many as your searches will knock your credit rating.

Best bet is to put a few small purchases on it and pay balance off each month. Eventually you'll get a limit increase and/or other providers will start accepting you

Thanks. If they knock me back this time, I will not apply for any more credit for the next 6 months. Including the credit search that CapitalOne are going to do, I'm going to have 4 credit searches within 1 month on my credit report, which is terrible (my own fault). I believe after 6 months, these searches don't make much difference as my credit rating should have improved over that time.

NickX

I would advise making sure that you are on the Electoral Role, this is pretty crucial to getting a decent line of credit, especially as you have very litle history for them to judge you on. Good Luck.

TheEffect

NickX wrote: »

I would advise making sure that you are on the Electoral Role, this is pretty crucial to getting a decent line of credit, especially as you have very litle history for them to judge you on. Good Luck.

Am on the electoral role, according to Experian.

davethorp

If you do get knocked back, you could try getting a contract mobile phone in your name (providing you can afford to run two). The extra search shouldn't matter too much and the contract phone will put some green markers on your file.

Alternatively try for a catalogue with the littlewoods or JD williams groups as again these will get the green markers going

Nichelette

If you aren't accepted the best thing to try would probably be the Barclaycard initial card as already mentioned. I've got one, it was my first and only credit card, and I still have it now (I'm almost 23). The only reason I haven't changed is because I always pay it off in full, it's fine as long as you do this (othewise the rate is very high). Good luck .

YorkshireBoy

TheEffect wrote: »

however they declined my application.

Did you ask them why?

Also, how do I set up a direct debit to pay off the card each month and will this definitely pay the CC before it's due date (Don't want to incur charges)

It's as easy as asking them (during the activation call), and it'll pay off your balance ON the due date...not "before".

should I put things like my contract mobile bill onto it (Phones not in my name BTW)

Absolutely not! Avoid continuous payment authorities (CPA's) at all costs.

Just for your information, it doesn't matter how much you spend on the card, the 'payment on time' marker will be the same. Indeed, a great many card providers send a 'green 0' (ie payments up to date) even if you don't use your card in a particular statement period.

TheEffect

YorkshireBoy wrote: »

Did you ask them why?It's as easy as asking them (during the activation call), and it'll pay off your balance ON the due date...not "before".Absolutely not! Avoid continuous payment authorities (CPA's) at all costs.

Just for your information, it doesn't matter how much you spend on the card, the 'payment on time' marker will be the same. Indeed, a great many card providers send a 'green 0' (ie payments up to date) even if you don't use your card in a particular statement period.

Yes, Lloyds refused me as my Credit Report scored to low for them to offer me credit. Thanks for your information.

Also, with this card, am I protected such as items not being delivered etc, like other standard credit cards?

YorkshireBoy

TheEffect wrote: »

Also, with this card, am I protected such as items not being delivered etc, like other standard credit cards?

All credit cards offer section 75 protection.

chris_wales

i couldnt get a card when i was with lloyds, so moved my bank account to natwest (voted with my feet as they say), applied with capital one and they said same to me and wrote asking for id. sent me a card with a stupid £200 limit, but make a purchase and pay off in full before 4th statement and they up limit. Give it a few months and apply for mainstream cards. I now have a natwest card & natwest gold, and a barclaycard gold. all in just over 12 months.