Newly self employed- Chance of a obtaining a decent personal credit card.

RNW2

Hi,

About 8 months ago I left the luxury of employment and set up my own business. I've always had a good credit rating (I say that based on the fact that I've never been turned down for anything) but I am wary of applying for a new personal credit card in case I get refused because of my new self employed status. I currently have two credt cards that I want to transfer the balances from to a 0% balance transfer card.

I know anyones answers will just be opinion but I'd like to hear none the less. So what do you think? What are my chances of success?

Thanks

lynxptc

I've been self employed since 16 and never had any problems. I think they look mainly at your credit rating and not your employment status.

Bismarck

would think that putting your income on a form would be a bit more tricky. Be careful not to overstate though as you'd be stuffed if they wanted to check, given that your business is so new....

badboybill

Remember the world eight months ago was a different place.

Credit card companies want to make money at low risk - like all businesses. If you've had no problems financially whilst being self-employed then you have nothing to worry about.

Although CCC's are very picky now who they want as their customers so don't be put-off by rejection. READ the t&c's before you submit any application and be mindful they want to make money from you.

Maybe phoning your application is better these days. That way they get a better feel as to how much money they are going to make from you.

RNW2

Hi all,

Thanks for your views.

My worry was that they'd look at the fact that I'd only just started up and see that as a massive risk. Since setup I've had no problems with regard to my mortgage, cc payments etc. I'd also struggle to give an accurate monthly income and worried that they'd delve into my bank accoutn history. Can they do that??

Moggles_2

Lenders like stability, so best practice is to apply for credit facilities, where possible, before you move/change jobs/change banks and make as few changes beforehand as practicable. Being with the same employer, bank and current address for a while all help when applying for market-leading BT cards.

That said, none of us knows in advance whether we'll be accepted. The only way to find out is to apply.

I'd also struggle to give an accurate monthly income and worried that they'd delve into my bank account history.

Have you checked your credit reports? This is the information UK lenders see, when you apply for new credit facilities. This data's available by post for just £2 per paper copy. For links, see page 1 of the *How to obtain credit reports* sticky

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

RNW2

Hi Moggles,

Thanks for that. I was told by a financial advisor when I first applied for my mortgage (about 2 1/2 years ago) that doing a credit check on yourself can have an adverse effect on your credit rating. Do you know if that's true? I'd hate to get it done and mess up my current status.

Thanks

RNW2

Moggles_2

RNW2 wrote: »

I was told by a financial adviser when I first applied for my mortgage (about 2 1/2 years ago) that doing a credit check on yourself can have an adverse effect on your credit rating. Do you know if that's true?

Not so.

Strictly speaking, lenders carry out credit checks when you apply for credit facilities. The credit reference agencies (CRAs) provide you with credit reports. These are the files UK lenders search when they do a credit check.

You can look at your credit reports as often as you like. This has no effect whatever on your credit status.

RNW2

Thanks,

I'll check this out.

RNW2