Help - Why Can't I Get a Credit Card?

southpolesurfer

Hi

I'd be very grateful for any advice the forum can offer.

I'm originally from NZ, have now lived in the UK for 2 years and banked all that time with one of the top 4.

I'm listed at the Electoral Roll at my current address since the beginning of the year and then was also registered on the roll at my previous address for 9 months before that.

I've had a Vodafone monthly account since October 2008

I have a job in middle management with an excellent salary for the same company since Feb 2009.

I have had utility bills in my name since the beginning of this year.

I've had one hire purchase agreement last year which I paid off in full according to the terms of the 6 month contract.

I have no bad debts on my record and my bills are always paid on time.

In my home country I own property, have a mortgage and several credit cards, and my record is spotless. I appreciate that doesn't count for anything in the UK but I want to transfer my finances over here, and I'm finding it really difficult to do because I can't get credit in this country.

Experian gives me a good credit rating, Equifax gives me a poor one. I've contacted Equifax to ask what the problem is and all they will tell me is that I'm comparatively low ranked to other people in my area.

I live in E14, London, because it is close to where I work. However I believe the postcode is rated as being a "disadvantaged" area.

Since June 2009 I have at different times, being careful to space the occasions 6 months apart, applied for sub prime credit cards to start building a credit history, including Acqa and Capital One. I am always turned down. I have written polite letters to appeal, detail my circumstances and goals, ask for more information... and never get a response.

Can anyone please tell me what I'm missing here? I've looked online exhaustively for information about how to improve my credit rating and I can't see that I'm doing anything wrong, I've already followed all the advice that's given.

Thanks


SPS

telecomengineer

I was in a similar position 18 months ago, couldn't get credit.

Personally from experience, the best card to apply for 1st is the Barclaycard Initial Card...this is for those new to credit or those with little credit history

I was given one with a £400 limit, after using this for 3-6 months paying back in full...i then applied for the Sygma Flybe card...this was accepted with a £2K limit

Building a credit file takes time, minimum searches and only apply to the organisations most likely to take you.

Dont bother with Capital One or Vanquis, try Barclarcard.

southpolesurfer

Telecomengineer,

Thank you so much for your advice. I tried Barclaycard earlier in the year but was rejected at the "non footprint search" stage.

After reading your post I hopped online to try them again, and was delighted to find immediate acceptance with a promise that my card will arrive in 5 working days.

I'm finally on the Uk ladder!!!

Thanks again....you've really helped me out!


SPS

missredhead_2

Most large Credit Card companies look for a 3 year address history, so I guess you will just need to wait a little longer.

telecomengineer

southpolesurfer wrote: »

Telecomengineer,

Thank you so much for your advice. I tried Barclaycard earlier in the year but was rejected at the "non footprint search" stage.

After reading your post I hopped online to try them again, and was delighted to find immediate acceptance with a promise that my card will arrive in 5 working days.

I'm finally on the Uk ladder!!!

Thanks again....you've really helped me out!


SPS

Well Done on getting the card, they usually send an email a day or two after acceptance confirming the credit limit and to say the card is on its way.

Here is some advice, make sure you try and pay in full each month...as this will ensure you are offered a better card and lower interest rate in the future. after your 7th statement call them up and ask to lower the rate and they will. If you cant pay the full balance try and pay as much as you can as they are not keen on minimum payments. it also shows on your credit files that you have only payed the minimum

chexum

southpolesurfer wrote: »

I have a job in middle management with an excellent salary for the same company since Feb 2009.

I have had utility bills in my name since the beginning of this year.

So you just reached 18 months at the same company - 6-12-18 months are obvious steps to measure stability with accounts, addresses, and jobs.

If you moved this year, that also needs some time for lenders to accept as stable, so it looks like you just crossed the boundaries, well done

I found that many lenders seem to match others' credit limits, so every six months, you can ask Barclaycard to increase the limit too, otherwise prime cards will get you similar limits as well. If you start with £260, you need to careful to be below that at all times, and not spend more than that, even if it's difficult, and you can pay it back mid-month. There are signs that they consider the credit limit a monthly limit as well.

Contrary to others, there's not much to hate about sub-prime lenders, except the interest. Capital one is easier to service, and provides free Equifax monitoring, Vanquis OTOH is more generous with the limit increases, so you are less likely to stuck with £500 for years. Mind the APR though, no sense in carrying a balance.

You're in a good position that you have a previous addresses, as most forms only ask a single previous address if you're living somewhere for less than three years - it's more like a rule of thumb for banks, it's far from being a legal restriction. No "typical" APRs though unless from your bank that knows you for the longest time...

Feel free to test the waters every few months, or try a "backdoor" in opening savings accounts with banks so that they let you use the online application (slightly!) easier.

You can try Moneysupermark*ts smart search (cards->credit builder) to have a rough idea about your credit-worthiness too.