Desperate need for some credit.

capstain411

Hi moneysavers,

I am going to qualify in october and have landed up with a 32k job from 1st week of nov. I am at the moment in a trainee position and have a pay of 18k.

But in order to get confirmation I will have to mobilize my self ( i will have to purchase a car). I am having around 3000 pounds student loan debt with HSBC. I have been very prompt at my repayments. I paid more than 3800 pounds this year alone to bring down my debts.

I had two credit cards with combined limit of 3250 pounds. I have cancelled one card and at the moment have credit limit of 2000 pounds.

Last night i applied for mint card. I got instant decision but limit of only 400 pounds. I learnt from other threads that by sending 3 months bank statment i can apply for higher limit. Now until Nov being in trainee position i have a low income, so doubt would get a limit hike with those bank figures.

I need to buy a car before nov so i am not sure what should i do to increase my credit limit. Please give your suggestion and bail me out of this catch 22 situation.

jonesMUFCforever

£18k a year is NOT low income !!!!
Apply for a loan with your main bank (Graduate loan?)

capstain411

thanks for responding. The point for applying a credit card with 2k limit is because i need funds only for 2-3 months. After my job starts i would hardly be using my card and plan to repay all the debts in 4 months.

Credit card is the only option which will lend me money interest free. Graduate loan will cost me 5.8% APR do not really want to go for that.

virgin_moneysaver

I wish my husbands income was that 'low'!! - he just applied & got accepted for the GE transformation card which is 0% for 12 months on purchases & Martin says they are strict scorers - otherwise sainsbury Visa is 0% for 10 months on purchases

gazza975526570

£400 seems a low credit limit on £18k.

Are you sure your credit rating is good? Have you recently moved/on electrol register?

id get a copy of your report.

can you borrow the money from parets, interest free?

Careful_ly

I think you will find that most car sales wont accept a credit card payment for a car, and if they do they will charge you a fee. I would advise you to check this with whoever you are purchasing from.
If you take out a loan, just make sure there is no penalty for repaying it early.

capstain411

I am sorry if i offended anybody by saying 18k as low. I am of the firm belief that anything earned by hard work is never small whether it is 3.80 p/h which i earned by working in sandwich factory or 21.50 p/h as professional.

Well i never realised that credit card payments are not accepted while purchasing cars. Well, while going through auto trader most dealers advertised "all credit cards accepted" so i presume they will accept mine .. or...?

I am planning to buy a property in the near future so do not want to borrow money from parents until then.

Yes i was surprised by decision of 400 pounds against 18k salary.But thats a fact. I did get a credit report from experian.No flag ups in the report. So any suggestions.

I have not yet signed the mint credit aggrement. So if i want to try with some other company when should i try. I was of the understanding that applying for credit in quick succession screws up credit rating.

jonesMUFCforever

My advice is to try your own bank.
You may not get the lowest rate but they should be able to advise you of the limit to be offered first (if you ask in person at a branch), then its up to you whether its worth another footprint on your credit history.
Car dealer may accept a credit card but expect you to pay their cost of the transaction (2-3%).

virgin_moneysaver

"I am planning to buy a property in the near future so do not want to borrow money from parents until then."

love it!!

Chumana

I think the mistake you made was in applying to Mint! I earn in excess of £18k and was given a paltry £400 credit limit too a couple of months ago. I requested an increase and was refused and told they would review it in 6mths time. I just don't think they like people having large 0% loans out of them :rolleyes:

Chumana

capstain411 wrote:

I have not yet signed the mint credit aggrement. So if i want to try with some other company when should i try. I was of the understanding that applying for credit in quick succession screws up credit rating.

The search will already be done and entered on your credit files so you may as well take the card and use the £400, paying it back when 0% runs out next year.