Credit Card newbie-worried about getting turned down

sparkay

Hi there, I'm going to give as much detail as possible to try and make it easier for people to respond but this is a bit of a long one!

My husband and I are planning to get a credit card-it will be the first time for us although we do have store cards. I'll detail that below.

Basically, I want us to choose the right card obviously, but I am also worried about getting turned down. Reason being, last year June,we asked our bank, barclays, for an increase on our overdraft limit on our joint account (which is only £50!!) as we had booked a holiday, company went bust, and we needed to pay for the flights again. We only wanted £300 but didnt have cash to hand. (part of the reason we're thinking we should have a credit card incase this sort of thing happens again!)
The bank turned us down! We were shocked because I was sure our credit ratings should be good. So we signed up to Experian and checked our credit reports which showed us both to be in the very good/good range! Mine was slightly lower than his which I was surprised at because he as more debt than me!!! (see below).

Since then I have opened my own account and they happily gave me £100 overdraft limit.

So now we want a credit card so that if we want to make a bigger purchase like an electrical appliance or book a holiday etc, we can pay in installments, and also incase something happens like the holiday situation above and we dont have enough cash to deal with the situation! So not sure which would be the best credit card to get. One with a 0% for the first 12 months, or one with a long term low APR....or both?
And in whose name should we apply for the card for, mine or his?
Also, how do you work out how much you will have to make as a minimum payment each month?

So here are some of our financial details:

I have 2 store cards I use regularly, 1 has about £20 to pay off, the other I've reached the limit on -£150. I have standing orders set up to pay off the minimum payment each month as I missed a few. I have 2 other cards that I've never used. (should probably get them cancelled I know).
He has one store card he's used recently but the balance is paid off.

We have a joint account with £50 overdraft limit which we regularly go into (only really because he is self-employed so pays money in a bit at a time). and sometimes go over because we haven't checked it and a payment has gone out before he has paid money in. This was originally my own account which I had for 13 years with Barclays.

My own account (barclays) is the account I have my wages paid into (almost £1000 per month-part time employment). I have an overdraft of £100 which I use each month due to helping out a relative who is unemployed at present. I don't go over the overdraft.

He has 3 of his own accounts: 1-Barclays with £1300 limit which is at the limit. He pays his wages into this account after it goes through his business account (abbey), also has a lloyds account he's had for years, £300 overdraft which is at the limit. Doesn't use the account.
He has also applied for ANOTHER current account, by mistake, he meant to apply for a savings! (not sure if that affects credit scoring etc?)
His monthly wages are £1000 approx, sometimes a bit more, sometimes a little less.

Also have mobile contracts, both paid by DD in full each month.

I've lived at our address almost 3 years, he 5 years. Both on electoral roll.

.....thinks thats all!

Any suggestions!! Sorry it's so long!

BugsyBrowne

I dont think you will have that much of problem getting a credit card..
Try your bank first which you say is barclays,now they search equifax have you checked your credit report with them..Does not matter which one of you apply you are both financially linked with your joint account so they will credit search both of you..
If all else fails you might have to start off with a sub-prime card like cap 1 or vanquis,but you don't really want to go there,unless you have to which will then give you a bit of credit history after a few months..

sparkay

Thanks for your reply. Haven't checked with equifax, would the report say anything different to experian? If so, why? Why does it make a difference who you apply to if they all check your credit history?...sorry if thats a stupid question!

stephane_2

• If you've never had any credit card before then it will be very difficult to get one with a good rate.
• You say you've missed some payments on a store card, if it is within the last 12 months then unlikely that you will be approved.
• You say that you're using regularly your overdraft, again that will not help you as lenders like to see when people can manage their finance without going into it. Once/twice a year might be ok, more than that is a big NO NO.
• Best chance for you would be to start first with your own bank & see what they say. If they say no, then unlikely other mainstream lenders will approve you. If your bank says no then you could try sub-prime like Capital One, Barclaycard Initial, Vanquis or even Sygma (Flybe).

sparkay

I understand what you are saying about using overdraft regularly. However wouldn't this affect credit score? When we checked our credit scores with Experian my husbands score was higher than mine and his combined overdrafts are £1600 which have never been cleared for...say 5 years! Yet when he applied for a store card he got a higher credit limit than I did with the same card!

Also, I thought that lenders like to see you manage your finances, but not too perfectly otherwise they dont make money?...

I've been using all my overdraft for a few months due to helping my relative. Our overdraft on our joint we go in and out of during the month. Not sure if that makes a difference.

Thanks for the advice, just trying to get my head around how they take into consideration all the different factors!

BugsyBrowne

If you done them credit scores you have wasted your money,they don't mean anything,banks use a completely different system when credit scoring..
You have excellent on one of credit experts scoring,but on the banks credit scoring you could have average..

stephane_2

Your credit score with Experian or Equifax does not mean anything at all. stop wasting your money. Each lender will have many different criteria to assess your application. As I said, using your overdraft regularly does not look good for a lender as it shows that you are unable to manage your own finance without going into it.

sparkay

Oh!..can you get your credit score from your bank then? So if I were to apply for a credit card with a company I'm not banking with, how do they credit score?...do they see my banks score of me or the credit agencies like Experian?..

BugsyBrowne

They will not know what score experian gave you as banks have there own criteria for scoring..no you will never find out ever what score a bank has gave you..

BugsyBrowne

Sparkay apply for this card.http://www.flybe.com/card/
It aint going to hurt with one application just so you know where you stand..

sparkay

..so if I apply for a credit card with a bank I am not banking with, what will they look at to score me for themselves?...where do they get information about me from?