Barclaycard: credit card opening process and other queries

book12

After shopping around for credit cards, I would like to apply for a Barclaycard, specifically 'Barclaycard Initial'. The reason for wanting that particular credit card is that I have limited credit history, want to build my credit history/score, and earn less than £20,000 (that particular card minimum income is £10,000, and I earn between that amount and £20,000 pa). Also, my circumstances mentioned just now don't qualify for other types of Barclaycard.

I am an existing customer with the bank too.

The only experience with credit is my £100 overdraft on my graduate account, which I paid off immediately when my wage has been credited to my account.

I would like to know the following:

• would an internal score be used to decide if I will be eligible for the credit card, along with their external score from the credit reference agencies
• do I get to chose the credit limit, or does the staff/computer system decides? I want their minimum limit, which is £250 according to their website. I don't mind the limit though if they generate it for me (if it's more). I would spend what is necessary, and won't blow the credit limit all at once.
• I will be using it once or twice a month, usually before pay day to buy things.
• I don't spend a lot, as I don't pay any bills and stuff like that. Do you think I would still be eligible?
• I am doing temp work at the moment, would I be declined, as the job is not permanent?

stephane_2

book12 wrote: »

After shopping around for credit cards, I would like to apply for a Barclaycard, specifically 'Barclaycard Initial'. The reason for wanting that particular credit card is that I have limited credit history, want to build my credit history/score, and earn less than £20,000 (that particular card minimum income is £10,000, and I earn between that amount and £20,000 pa). Also, my circumstances mentioned just now don't qualify for other types of Barclaycard.

I am an existing customer with the bank too.

The only experience with credit is my £100 overdraft on my graduate account, which I paid off immediately when my wage has been credited to my account.

I would like to know the following:

• would an internal score be used to decide if I will be eligible for the credit card, along with their external score from the credit reference agencies
• do I get to chose the credit limit, or does the staff/computer system decides? I want their minimum limit, which is £250 according to their website. I don't mind the limit though if they generate it for me (if it's more). I would spend what is necessary, and won't blow the credit limit all at once.
• I will be using it once or twice a month, usually before pay day to buy things.
• I don't spend a lot, as I don't pay any bills and stuff like that. Do you think I would still be eligible?
• I am doing temp work at the moment, would I be declined, as the job is not permanent?

You won't know if accepted until you try to apply for one...have you tried barclaycard website pre-application check to see what you're likely to be accepted for? It is likely that they'll do a credit search, because Barclays Bank uses experian & Barclaycard uses Equifax but they will certainly look at how your bank account has been managed. You cannot decide of your credit limit, interest is high on this card at 27% so best to use it on monthly basis on small purchases but pay up in full when statement issued to avoid paying interest, that will help build a credit history. DO you have a monthly mobile phone contract? catalogue account would also help build some history

book12

I just want a £250 credit limit, which is the minimum according to the website. How come I can't choose? It's not like I want a big credit limit.

I don't have a catelogue account and mobile phone contract. I don't need them. I'm happy with my 'pay as you go' phone, as don't use it that much. Also, does my £100 overdraft that has been paid back is not enough to build a credit history? :

wontfallforit

book12 wrote: »

would an internal score be used to decide if I will be eligible for the credit card, along with their external score from the credit reference agencies

Not sure how Barclays do things, but the bank I work for uses 2 methods. New CC applicants who haven't already been routinely credit-checked by the bank will be subject to a full credit check...existing customers who have already be pre-screened will be accepted - or declined! - straight away. Depending on your credit history in general, and your history/length of time with Barclays, you may already be pre-approved for the card. If not, it doesn't necessarily mean you can't have it, you'll just have to wait a short while for a decision and a firm credit limit, whilst Barclaycard work on your application. Banks routinely credit-check their customers for marketing purposes, as well as in the interest of appearing to be responsible lenders. These credit checks have no detriment on your overall credit file, as they don't show up.

do I get to chose the credit limit, or does the staff/computer system decides? I want their minimum limit, which is £250 according to their website. I don't mind the limit though if they generate it for me (if it's more). I would spend what is necessary, and won't blow the credit limit all at once.

I believe that you don't actually get to choose your limit. Whilst you may be able to request a specific amount, the lender has the ultimate decision. I have a Barclaycard initial, but to be honest it's been so long since I got it, I can barely remember the application process. I was given £250 initially, which increased up to £2500 within 2 years. You're likely to be offered a lower amount if your current credit history is poor and/or unsubstantial. It's very easy to obtain limit increases, and they're often applied automatically. If you'd like to decline any increases, just call Barclaycard and they'll amend your limit straight away.

I don't spend a lot, as I don't pay any bills and stuff like that. Do you think I would still be eligible?

It depends what information they have to base their decision upon, which of course takes your overall credit score and history into account. You have an existing credit product with Barclays (that overdraft), and provided you've managed it well, obtaining a CC shouldn't be too difficult. Any mobile phone contracts? Any other current accouts/overdrafts with other banks?

I am doing temp work at the moment, would I be declined, as the job is not permanent?

It is possible for your application to be declined on this basis, but it certainly wouldn't rule you out. A £250 CC limit is not a major risk for a lender. Minimum payments on the full balance would be less than £10 per month.

From a personal perspective though, it'd be better sticking to your guns and remaining well within your means when you use your CC. If/when your credit limit is increased, minimum payments (assuming you have a full balance outstanding) can soon spiral beyond affordability for temporary workers / unemployed persons.

book12

wontfallforit wrote: »

Not sure how Barclays do things, but the bank I work for uses 2 methods. New CC applicants who haven't already been routinely credit-checked by the bank will be subject to a full credit check...existing customers who have already be pre-screened will be accepted - or declined! - straight away. Depending on your credit history in general, and your history/length of time with Barclays, you may already be pre-approved for the card. If not, it doesn't necessarily mean you can't have it, you'll just have to wait a short while for a decision and a firm credit limit, whilst Barclaycard work on your application. Banks routinely credit-check their customers for marketing purposes, as well as in the interest of appearing to be responsible lenders. These credit checks have no detriment on your overall credit file, as they don't show up.

I haven't got any pre-approved offers yet from Barclays. Only been with the bank for 5-6 months, so not that long.

Not sure if my graduate account (including overdraft) shows up on the credit reports, as the staff who opened it needs to ask permission from the bank manager to open it, and not a system genereated decision....

I believe that you don't actually get to choose your limit. Whilst you may be able to request a specific amount, the lender has the ultimate decision. I have a Barclaycard initial, but to be honest it's been so long since I got it, I can barely remember the application process. I was given £250 initially, which increased up to £2500 within 2 years. You're likely to be offered a lower amount if your current credit history is poor and/or unsubstantial. It's very easy to obtain limit increases, and they're often applied automatically. If you'd like to decline any increases, just call Barclaycard and they'll amend your limit straight away.

What I mean is to request a specific amount, not choose.

I am hoping that they give me £250. I don't mind if they give me another amount to start with, or an increase in the future.

Alos, does the APR decrease from 27% to something like 20%? Or is 'upgrading' to another type of Barclaycard is better?

It depends what information they have to base their decision upon, which of course takes your overall credit score and history into account. You have an existing credit product with Barclays (that overdraft), and provided you've managed it well, obtaining a CC shouldn't be too difficult. Any mobile phone contracts? Any other current accouts/overdrafts with other banks?

As well as a bank account with them (2 of them), I have some savings accounts with them too.

The overdraft is paid straight away, as a temp, I get paid weekly.

I have no mobile phone contracts and no other current accounts/overdrafts with other banks.

By the way, at the bank you work with, what information is based for an existing customer applying for a credit card? That way, I could get an idea.

It is possible for your application to be declined on this basis, but it certainly wouldn't rule you out. A £250 CC limit is not a major risk for a lender. Minimum payments on the full balance would be less than £10 per month.

Would they even now if I'm doing a temp job without me mentioning it, and not a permanent one?

Hope I get a permanent one soon.

From a personal perspective though, it'd be better sticking to your guns and remaining well within your means when you use your CC. If/when your credit limit is increased, minimum payments (assuming you have a full balance outstanding) can soon spiral beyond affordability for temporary workers / unemployed persons.

I will be using it for small purchases (rarely big purchases) and in an emergency.

izools

book12 wrote: »

I haven't got any pre-approved offers yet from Barclays. Only been with the bank for 5-6 months, so not that long.

Not sure if my graduate account (including overdraft) shows up on the credit reports, as the staff who opened it needs to ask permission from the bank manager to open it, and not a system genereated decision....
It has a credit facility so it should


What I mean is to request a specific amount, not choose.
They will decide, but if you feel it is too much you can ask for it to be reduced

I am hoping that they give me £250. I don't mind if they give me another amount to start with, or an increase in the future.
They will decide how much you can afford based on your income and level of debt already coupled with previous repayment history. You'll likely get a low limit to start with but this can increase after six months if you ask

Alos, does the APR decrease from 27% to something like 20%? Or is 'upgrading' to another type of Barclaycard is better?
You can call them after six months and if you have used the account well they will reduce it. They will upgrade you to Gold after a year of having the account depending on how it is run


As well as a bank account with them (2 of them), I have some savings accounts with them too.

The overdraft is paid straight away, as a temp, I get paid weekly.

I have no mobile phone contracts and no other current accounts/overdrafts with other banks. Maybe take out a Three Sim Zero - no line rental, just PAYG style charging structure, but pay by DD and build history whilst your at it

By the way, at the bank you work with, what information is based for an existing customer applying for a credit card? That way, I could get an idea.
They will take the fact you are an existing customer into consideration and this will bode well for the application - if for no other reason, they can use right of offset if you stop paying


Would they even now if I'm doing a temp job without me mentioning it, and not a permanent one?No

Hope I get a permanent one soon.



I will be using it for small purchases (rarely big purchases) and in an emergency.

I'd say go for it, you've got nothing to loose and you've got a good chance with the bank you are with. If not, take out a Cappy 1 Classic and go back to barclaycard in six months

wontfallforit

book12 wrote: »

I am hoping that they give me £250. I don't mind if they give me another amount to start with, or an increase in the future.

I'm not really involved in lending, but from what you write, it seems highly likely that you'd get the £250, if successful in your application. It could be a good tool to build upon for future credit.

Alos, does the APR decrease from 27% to something like 20%? Or is 'upgrading' to another type of Barclaycard is better?

You're unlikely to see your APR decrease. Increases are much more common - though the BCI is already pretty high, so not something you'd have to worry about really. Upgrading to another card can be tricky. AFAIK, from trying to change my own BCI, it's nigh on impossible. Mine is all paid off and settled now, but they are not keen to allow you to switch your card. Once you're up and running with a good credit history in a couple of years' time, you might want to jump ship from Barclaycard, as another lender might be in a better position to offer you a better rate. Your existing BC could well stay open, if you choose. Only after you've taken your balance elsewhere will BC be keen to tempt you back with offers That's pretty typical of all lenders. Credit cards are a calculated game.

By the way, at the bank you work with, what information is based for an existing customer applying for a credit card? That way, I could get an idea.

As said, I'm not really involved in lending. I do personally sell credit cards - either pro-actively, or upon request...but I don't make the decision on who gets one and who doesn't. All I know is that the majority of customers who have managed their accounts well during their time with the bank are either already pre-approved for our CC's, or are highly likely to be accepted...provided their credit file doesn't show up any nasty surprises externally from our bank. Pre-approved customers are rarely credit-checked on the spot. Account entries, salary, account management, etc. has already prompted routine checks in the past, which remain valid for several months at a time.

Would they even now if I'm doing a temp job without me mentioning it, and not a permanent one?

No, they wouldn't know. They will ask, but it's your responsibility to tell the truth. But bear in mind that you may well be offered a credit limit that's most appropriate for permanent employees. As said, if your credit limit begins to spiral and you're still temping, it might be best to voluntarily cut-back on it.

Why not just go to barclaycard.co.uk and apply for one? If you're certain you could manage the account responsibly, what's stopping you? You may well get an instant decision. But if you don't, it doesn't necessarily mean you've been refused.

wontfallforit

izools wrote: »

You can call them after six months and if you have used the account well they will reduce it.

I had no luck doing this. I never over-spent, and always paid back much more than the min. payment. Also, this was a little while before the recession.

izools

wontfallforit wrote: »

I had no luck doing this. I never over-spent, and always paid back much more than the min. payment. Also, this was a little while before the recession.

I've been a Barclaycard Initial customer twice. First account I opened five years ago when I was 18 - was given a £2,000 limit @ 25.9% (That was the APR then), decreased to 19.9% after nine months and down to 9.9% once the account has been open 18 months.

Closed the account because they cut my limit to £750.

I then re-applied for an Initial in November, got a £1,150 limit, and was given a reduction to 24.9% already and have been told I can get another to 19.9% in May.

You need to threaten to close the account to get it, not just "ask"

wontfallforit

izools wrote: »

You need to threaten to close the account to get it, not just "ask"

Oh, I did, that's how the account ended up being closed

My problem was that I was in heaps of debt at the time. I have never defaulted on any of my credit payments, but I have maxed out and juggled 6 or 7 cards at once :-/

Debt free now, after a dreadful period between the ages of 18-24!

izools

wontfallforit wrote: »

Oh, I did, that's how the account ended up being closed

My problem was that I was in heaps of debt at the time. I have never defaulted on any of my credit payments, but I have maxed out and juggled 6 or 7 cards at once :-/

Debt free now, after a dreadful period between the ages of 18-24!

Lol tell me about it, I've come out the other end thankfully! I guess with all credit card companies they look at more than just keeping to your account T&C. Barclaycard get an Insight feed from Equifax so they can keep an eye on the "live" state of your credit file - they can decide whether you are suffering debt stress and change your APR / Credit limit accordingly based on not only accout conduct with them but all other creditors, too