How can I get a blooming credit card?

ellie78_2

Right. I know this is probably a recurring theme but - honestly - I have read all the posts/info on this website and I'm still so confused. Would really really appreciate some advice!

Situation is..

There's a black mark - an ''8" against my name on my credit file, going back to 2004. I was in dispute with Mastercard regarding a debt they said I owed them, which (as it got passed to a really incompetent debt recovery company) dragged on for way too long. We settled in 2008.

Since the 2004 problems I've had mobile phones, a Lloyds graduate loan (which I paid off something like £100 a month for 7 years - never once missed a payment), an authorised overdraft. But no credit cards.

I hate credit cards and credit card companies - I won't go into what happened in 2004-8 but it wasn't a nice experience. I wasn't ever going to touch credit cards again but this year I found myself and my partner getting excluded from the best mortgage deals not because of the "8" - we were told - more because I had no significant credit history to speak of.

So - I'm trying to get a credit card, so I can build up my credit history (am also on electoral roll, been at our address for nearly 3 years)...According to Experian (I ordered my credit score) my credit score is described as "Fair" .

I've applied for a couple - Tesco Clubcard credit card (yes - blind optimism probably) and the much more realistic Barclaycard Initial.

I don't know if anyone else has seen Experian's 'Lower My Bills' service, which purports to link you to the deals you're most likely to be accepted for - but they recommended the Tesco Clubcard and various other brilliant deals of the 0% purchase variety...but - seeing as I was rejected for a Barclaycard Initial - I can't imagine that I'm going to get very far with the good ones.

I've got rejected for both. Do I carry on with applications - and if so do I try Vanquis automatically......After how many applications does it start looking bad on your credit history?

Would really appreciate some advice as it is so so disheartening to be turned down for these things - particularly when you don't really want one in the first place!

stephane_2

Have you tried with your own bank? otherwise there is also capital one card you could try but be aware that too many applications within a short period of time could damaged your ability to get credit. It is not because you've been declined with one provider that you'll be declined with all the others, they all have their own lending criteria. But if you have been with your bank for a while and have managed your account well...i would try that first

[Deleted User]

Hi Ellie.

There's no hard and fast rule to how many searches will tip you "over the edge", but 3 in a month or more and you start getting problems.

Given your credit rating's pretty poor, I'd try Vanquis. Failing that, try the Cashplus Creditbuilder thing.

I wouldn't even bother with the Barclaycard Initial to be honest. Like Capital One, they've become quite stringent.

I'd also recommend asking your bank if they can do anything for you.

Remember, the things that match you with various credit card deals aren't there to help you get a card - they link you to the ones they make the most commission from when they sign people up. If 10% or so of they people they recommend it to get declined, they don't care, because they're making loads of £££ off the people who do get accepted.

stephane_2

Sorry but the cashplus credit builder will not make any difference at all to improving your credit file.

ellie78_2

Thanks for the advice! Really appreciated - though slightly scared I've scuppered my credit score for a bit - as I've made 3 applications for credit cards in the past month. (But surely, your credit score should only really be at risk if you're actually getting these cards!) These 'unknowns' are both confusing and stressful.

Yes- I forgot - had also applied for Capital One - I'm still waiting on their decision - they said they'll let me know in 7 days - so I should hear at some point this week.

What I guess I'll do is see what happens with the Capital One and then leave it for a while and apply again in the New Year.

I'm opening a student account (postgraduate) in October, haven't decided with who yet, but maybe I'll be able to get a credit card with that. We're hopefully tying up our mortgage at the end of this week as well. Perhaps being a homeowner will make a difference!

Thanks again.

nzseries1

stephane wrote: »

Sorry but the cashplus credit builder will not make any difference at all to improving your credit file.

I disagree.

According to this page:
http://www.moneysavingexpert.com/loans/credit-rating-credit-score (search on the page for "cashplus")
it does have a positive effect on your credit file.

LeeSouthEast

The most important thing is don't apply for any more cards or credit in general for at least the next 31 days. If you want to be sure, leave it a bit longer. Then approach your own bank and see if they'll offer you one. You're much more likely to get accepted via this route.

Your mobile contract will also help build up your credit history. Every on-time payment is a good tick.

PNPSUKNET

I wouldnt apply for a mortgage this week if I was you unless your own bank. If you cant get a credit card Im afraid mortgage is out of the question , have you also saved a deposit up?

digitalphase

Why don't you give Capital One a ring on 0800 9524951, and find out whether you have been accepted?
I had the same 7 day thing and phoned them up about an hour or so after I applied. They told me over the phone I'd been accepted and my credit limit/APR.

I certainly wouldn't apply for a mortgage this week, as with 3 other recent searches on your file you may be rejected purely for this reason, which again knocks your credit file. Vicious circle unfortunately I think you should wait at least 3 months before making any further applications for credit - that includes graduate bank accounts.

CannyJock

PNPSUKNET wrote: »

I wouldnt apply for a mortgage this week if I was you unless your own bank. If you cant get a credit card Im afraid mortgage is out of the question , have you also saved a deposit up?

Secured debts and unsecured debts are completely different beasts. Having high balances on credit cards can affect mortgage applications, but 3 searches won't affect it.

lisyloo

But surely, your credit score should only really be at risk if you're actually getting these cards!

No, if a lender suspect you're being turned down then they get worried.
If other banks are turning you down then they think there's clearly something they need to be wary off.

It's similar to insurance companies asking if you've been redused insurance or had it cancelled. They want to know if there's some reason to be wary.

They can't actually see the result of your credit search, but lots of credit searches in a short period is generally assumed to be a bad hing.