First credit card

shedhead_2

I have just been declined in two credit card applications, one with Tesco and one with my own bank, Alliance and Leicester (Santander card).

My credit rating is almost perfect and there's nothing untoward on my credit reports. I earn over £30k so I was wondering why I've been rejected? And, more importantly, what can I do to get a credit card now? Am I more likely to be accepted with certain types of card?

Thanks

stephane_2

If it is your first credit card then that is the reason (probably) why you're getting rejected, simply because of lack of credit history in managing credit card accounts. If you have already try your own bank, then I would suggest that you need to go for either Vanquis, Capital One or Barclaycard Initial, those cards are specifically design for those with poor or no credit card history at all. Interest will be very high, but if you spend a little every month then pay the balance in full monthly to avoid any interest the you will start building an history of account management which will be reported to the credit reference agencies, then after 12 to 18 months you should be in a position to apply for a mainstream credit card....

shedhead_2

Thank you, that's really helpful. What are the downsides of going for cards like those you've mentioned? As long as I pay within the month to avoid interest, are they ok?

stephane_2

shedhead wrote: »

Thank you, that's really helpful. What are the downsides of going for cards like those you've mentioned? As long as I pay within the month to avoid interest, are they ok?

Part from the high interest, there's no downside but as long as you pay the balance in full and use the card regularly it will certainly help you build a credit history.