The Sub Prime Credit Thread - Part IV

leemuddywaters

Hi All

looking a bit of info, I have two defaults dating back to 2006, one is settled and one on going but almost settled, I havent applied for credit since the defaults basically and my credut report shows just these two entries and my bank account which is sitting in a very good position, I do have a mobile contract with three which I got six monyhs ago. Basically what Im asking is what would be a good credit building card for me? Ive just recently moved house so was gonna wait until Im registered on the electorol roll here before applying for one, any suggestions??

Thankyou

cdlmmll

Vanquis and or Capital One are prob your best bets, pay off each month as interest rates can be high. Also Aqua are good for credit building but harder to get.

cdlmmll

Deffo make sure your on the electorol rigister though first.

DizzleUK

pjread wrote: »

stupid question perhaps, but what does the limit on a vanquis card matter? surely any of us with one is just using it to buy a few things and pay off each month to get a few green marks - the green marks aren't any bigger for a bigger credit limit are they?

It's about showing Prime lenders you can manage an increase in credit limit. If you have a good history with a card, along with the odd increase in limit (as they now report this data to the CRAs) it'll look better.

Anyone with half an ounze of self control can manage a £250 limit.

I want a Prime card soon, and it'd be nice to say "hey, I've got a card I want to transfer the balance over, it has a £750 limit, but only £300 to move over."

never-in-doubt

Further to my thread here: First Direct

Right, having spend a good while on the phone to First Direct, using cleverly asked questions I actually managed to obtain their process and formula from them (ooooh yes I did indeedio!)....

Ok, so what they do is they perform the initial credit check (Experian only) when you apply, this is purely to see if you would meet their minimum score for accounts, they will then either accept or decline you at this point. There is no referral process for FD.

So, if it declines you this will generate an instant decline and a "Sorry" letter. However, all other passes are then sent the forms to sign which gives the bank authority to search you in detail and perform additional fraud checks. So, upon you signing and returning the forms the bank then assess your credibility by performing fraud and address checks, i.e. confirming you live where you say you do and checking with employers, if necessary - obviously at this point they also run a N Hunter and CIFAS check.

Depends on what happens at this stage depends if you get accepted or declined (again, there is no referral process as each applicant is assessed manually anyway). However the way the bank operates is they like to offer everything to you from day one, they only do one search if you apply for 10 things at outset - it does not matter. Similarly, if I apply for a credit card and the bank account, the fact I ask for a CC has no bearing on what I will be allowed as the initial credit check that was done when you originally applied, will state the amounts you are eligible to apply for at day one.

Basically, the reason you are pre-approved is because that is what the initial check has allowed - they did say their checks are a lot more stringent because they do not enforce that you hold an account for months etc before applying, they like to think they can offer you "everything" from outset - therefore she did say their scoring was one of the harshest in the industry.

In my case, I was told I have an overdraft of £1000, CC of £7200 and loan available of £16,500 which to me seems about right (circa £25k)...... (I did not apply for and do not need a loan though but it will still be available if I get accepted for the qualifying account - the first bank account - and decided to apply online for a loan of upto whatever my preapproval limit is)

However she did say that if I have a cifas then the accounts will invariably be declined, so I argued my case and explained I was a victim of ID theft and if they felt the urge to decline, would they ring and speak to me and allow me to the chance to argue my case - she has added a note to that effect so let's see eh?

I mentioned my application last year, she located it and told me that I was not declined as a result of anything from the CRA (Experian) but moreso from data held elsewhere - that to me confirms it is CIFAS as last May I had 2 cifas warnings, although this year I only have the one!

She confirmed that I had already passed the credit check and my pre-approved limits were high for a new customer, she said my behaviour score with HSBC would help that. However she did say that although as things stand she feels confident my application will be accepted, she did say she cannot guarantee anything. I even offered her a bribe - well sort of, but she was too professional me thinks - aaaaw

Hope the above helps to clarify any myths/questions that we had outstanding..... It has helped confirm to me that i'm wasting my time LOL - but sod it, the search was already done so no big deal eh?

BugsyBrowne

NID if first direct won't take you as a customer,why don't you just say f*ck them and go to another bank,there are plenty of good bank accounts out there,don't understand why everyone want a first direct account,i would of thought won't it be better for people to wait until their credit files are in good shape,then cant see first direct turning any new customers down to be honest....

never-in-doubt

star-fire wrote: »

NID if first direct won't take you as a customer,why don't you just say f*ck them and go to another bank,there are plenty of good bank accounts out there,don't understand why everyone want a first direct account,i would of thought won't it be better for people to wait until their credit files are in good shape,then cant see first direct turning any new customers down to be honest....

I know they won't accept me mate but it's something I have to do..... a year ago I said I wanted one and had to apply, they will back down eventually - I have got her agreement that it looks fine so far - I doubt it, but unlike last year at least this time they will speak to me if anything flags up as opposed to declining me (you cannot appeal FD as they assess each account at outset which is like an underwriters appeal anyway).

Barclays, Lloyds, RBS, CoOp all said no. Doesn't leave anyone else really - LOL. I may start to use my bank of Cyprus account as my main bank - yea right!

Innocent_Guy

You always want what you cannot get, I am the same lol

fairmorn308

Afternoon NID

Thats interesting reading above. I am home in a few days and got a few questions to ask ya as need some advice but will ask closer to the time

never-in-doubt

Innocent_Guy wrote: »

You always want what you cannot get, I am the same lol

Exactly mate - but they do seem to accept HSBC customers easier, as TheEffect said, HSBC declined him for a loan and when he switched to FD they accepted him - how weird, comes from the same pot of money in essence - just the payscale of the advisor at the end of the day, as to whether you get it or get told to "do one" :rotfl: