A First Credit Card - Please Help

Moggles_2

If this would be your first credit card, you have a limited credit history so, from the lender's perspective, you're something of an unknown quantity. They are likely to see your lack of a payment history as too great a risk. You probably need to be more concerned about actually getting a credit card, rather than looking for the best cards to meet your present circumstances. The bank which holds your main current a/c, may be the best place
to start

Once you have a starter card to pay for shopping, this will free up some funds to pay off your debts.

As above, 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

JC1987

It sounds like the best option may well be to just go into my bank tomorrow at lunchtime during work and explain the situation and what can be done about it.

The problem is that i fear they'll not understand very well that i simply will not have the money to pay them back until June 1st. Are they likely to wait this long or will they just bombard me with phonecalls and letters etc?

Borrowing from my family is unfortunately not an option.

Moggles_2

JC1987 wrote: »

It sounds like the best option may well be to just go into my bank tomorrow at lunchtime during work and explain the situation and what can be done about it. The problem is that I fear they'll not understand very well that I simply will not have the money to pay them back until June 1st. Are they likely to wait this long or will they just bombard me with phonecalls and letters etc?

In your first post, you said you could pay off the £600 debt in "a matter of months". If you could do so on 1 June (ie. 14 days), that's a different proposition.

Very best
M

JC1987

Moggles wrote: »

In your first post, you said you could pay off the £600 debt in "a matter of months". If you could do so on 1 June (ie. 14 days), that's a different proposition.

Very best
M

I probably didn't make myself very clear. I overspent by around £350 over my overdraft yesterday. I totally miscalculated what i had available to me and spent that money online on a variety of things (holiday accomodation/clothes etc). The only reason i wanted a credit card was to pay off this money as i know that the bank will be demanding it immediately when i can't pay it for a fortnight.

Maybe i am being a little over the top and the bank will be ok if i go in and speak to them? I have no real experience of this.

I appreciate all the helpful posts so far, genuinely.

sdooley

It sounds like you have about £2,000 in debt. We don't know what your income is so don't know how manageable that is, but you will not be the first person this has happened to. The bank will look to put all sorts of charges on if you don't speak to them and sort this out so you need to go in as soon as possible and work out an arrangement.

The bank will not be impressed if you ask them for a credit card to pay your debt off. As it says above it's a very expensive way to borrow. A personal loan would be the best approach, if you have the income to support it. That would usually be over 12 months minimum, though you might be able to repay quicker if you have extra cash - though not by going into your overdraft!

Don't go mad with applications - it hurts your credit record - but it might be good to think about going for a personal loan with another bank, as your current bank might ask for a higher 'personalised' rate. On the other hand your bank might be more likely to accept as they need to get the money back from you somehow and they can see your income going in each month.

Also, don't be tempted to borrow more than you need if they offer you more!

JC1987

sdooley wrote: »

It sounds like you have about £2,000 in debt. We don't know what your income is so don't know how manageable that is, but you will not be the first person this has happened to. The bank will look to put all sorts of charges on if you don't speak to them and sort this out so you need to go in as soon as possible and work out an arrangement.

The bank will not be impressed if you ask them for a credit card to pay your debt off. As it says above it's a very expensive way to borrow. A personal loan would be the best approach, if you have the income to support it. That would usually be over 12 months minimum, though you might be able to repay quicker if you have extra cash - though not by going into your overdraft!

Don't go mad with applications - it hurts your credit record - but it might be good to think about going for a personal loan with another bank, as your current bank might ask for a higher 'personalised' rate. On the other hand your bank might be more likely to accept as they need to get the money back from you somehow and they can see your income going in each month.

Also, don't be tempted to borrow more than you need if they offer you more!

I have about £1600 debt. £1250 is an interest free overdraft, £350 is over my overdraft limit. I am extremely nervous about it as it is kind of embarassing but i am just going to go in tomorrow lunchtime, ask to speak to someone, and try and get something sorted out i guess.

I appreciate all the help with regards to the credit card. A few hours ago it seemed like the perfect solution. Now it doesn't. I am sort of hoping that the bank might offer me some sort of repayment option to sort this out. I am really angry at myself for letting it happen.

Also your final point about being tempted to borrow more will be kept completely in mind tomorrow when i go in. On that note, will there likely be someone willing to speak to me without a prearranged appointment?

TheEffect

Dude, just go to the bank and ask them to raise your overdraft by £400 for 1 month. Depending on your income and credit rating, they should do this for you, then once it's paid back, decrease it by £400.

JC1987

TheEffect wrote: »

Dude, just go to the bank and ask them to raise your overdraft by £400 for 1 month. Depending on your income and credit rating, they should do this for you, then once it's paid back, decrease it by £400.

Are they likely to do this although my Overdraft's Maximum Limit is £1250? I am hopeful that they will help until i get this sorted otherwise i am in deep trouble really.

TheEffect

They should help. Explain your circumstances and they'll most likely sort something out for you. They're not just going to let you default or end up on the street because you're making them wait a few weeks for a couple of hundred.

JC1987

TheEffect wrote: »

They should help. Explain your circumstances and they'll most likely sort something out for you. They're not just going to let you default or end up on the street because you're making them wait a few weeks for a couple of hundred.

You are probably right. I just don't have a huge amount of experience with this sort of thing. I will bite the bullet and go in tomorrow and see what they say when i explain all.