New to credit cards?

jowie

Hi there - I apologise if this has been discussed elsewhere - if that is the case please point me in that direction!

I have had credit cards for many years and have what would be considered to be a fairly decent credit history. I have a fairly good success rate at applying for a new card.

However my partner who is also self-employed, manages his money on a weekly (and sometimes daily) basis... He has virtually no credit history (from the past six years) and no mortgage. When he applies for a credit card he always gets turned away.

If I put him as a named card holder on one of my cards, apparently it is approved without any credit checks on him. Would I be able to use this as a way of getting him on the credit ladder? Would I eventually be able to shift the entire card over to his name?

The only place he hasn't gone to try and get a credit card is his own bank. I have suggested that if his latest application is denied, he should go and talk to someone face-to-face at his bank (Barclays) who he has been with for years, as I would assume that would be the most likely place for him to be able to get credit. Or am I wrong? I guess he'll get a low limit and a naff APR to start with, but I guess everyone has to start somewhere.

Does anybody have any advice on this? He has no debts or CCJs, he just has no credit history... What's the best thing for him to do?

Many thanks :beer:

:-jowie

YorkshireBoy

jowie wrote:

What's the best thing for him to do?

In order...

1. Stop applying for lots of credit cards - he'll damage his credit rating still further (in the short term).
2. Wait 3 months and approach his own bank for a card.
2A. If accepted, run it for a while and build up some history - then try for a better card elsewhere.
2B If declined, try Barclaycard Initial, Capital One credit builder, Aqua, or even Vanquis (search the forum for posts on these cards). If accepted for one of these, go to back to 2A.

To answer your other question, a secondary card holder will not build up any kind of history at all, as the primary card holder is fully responsible for any debt on the card.

jowie

okay that's a good plan, thanks.

When I say he has applied for cards, he's only applied a couple of times in the past 12 months. However he is currently waiting back on one application. If that is declined I will suggest he waits a few months before talking to his bank.

Would it hurt his chances if he tries his bank before the 3 months is up? Considering it's his own branch, won't that give him some 'kudos'?

$17mma

Also try things like store card account or catalogue account. If you buy something pay it off straight away.

inmypocketnottheirs

Also mobile phone contracts reflect on credit files also.

YorkshireBoy

jowie wrote:

Considering it's his own branch, won't that give him some 'kudos'?

Possibly, but they'll still credit search him first.

jowie

that's a good point about the mobile phone contract. I am going to help him do Equifax and Experian searches online to see if there are any problems that need sorting out.

Thanks for all your input!

:-Joe