help with credit card query

lucylou

I wonder if anyone could help.I requested a tesco credit card but they wrote back saying that I can't have one .I don't understand why as I have never had any debts.I am now changing banks but surely that shouldn't be a problem.The only thing that I can think about is I moved to Britain about two years ago and before that I lived in Italy where I never had any problems.What do you think I ahould do.I have a good job and I really need a credit card for work as I need to travel on business but I need to pay in advance and then I get reimbursed.any help will be really appreciated.Tesco says if I can come up with anything else to write to them.......

Reaper

Read Martin's article to learn about credit scoring and if you still don't think you should have been declined ask for your details from the Credit Reference Agencies to check there are no errors.

jonesMUFCforever

Are you a UK national or foreign?
If not UK this is why you have been refused IMO (unless there is adverse information on your credit file)
Eric

Galstonian

Credit history does not travel internationally, the only exception to that which I am aware of is Amex. Because its ultimately the same company in different countries they can transfer their own internal history files.

If you need a credit card for business purposes then why not ask the business? Larger companies tend to have corporate arrangements with various card issuers (though Amex does seem to have most of it). If not then ask if under the circumstances they could arrange a cash advance before you trip, you can then use a debit card. I did this when I first moved to the US; if there is a business need for the travel then the expense has already been justified, its just a matter of when it is paid that is open for discussion.

Another point to note is that the electoral register plays a fairly large part in credit files, if you are not on it at your current address it counts against you.

grumbler

lucylou wrote:

...I have never had any debts....

This is the main reason: no debts - no credit history. The article that Reaper advises hardly covers this. It is usually advised in such a situation to start with bank that you already have relations with. However, it depends. I was in the same situation. After moving to UK I applied for my first credit card in 2 years (just did not need it before). I had 2 current accounts that time: with Barclays for 2 years and with Nationwide for 1 year. My first application for credit card was rejected by Nationwide. However, I had no problems with Barclaycard and then with Egg a few months later.
Advice:

1. You need your first credit card here mainly just to start you credit history. Do not look for some ‘good’ card. Any card will suit this. I heard that Capital One promise to accept application for Classic Visa Card from almost any UK resident (resident does not mean citizen). Natwest offered credit cards along with debit (Switch) cards to two my friends PhD students that just came to UK.

2. Avoid many applications – every credit search impairs your credit file and your chances. Try to discuss your chances with bank adviser informally in advance - before formal application that results in credit search. If being refused a few times stop applying! Start you credit history with small overdrafts (you should not only have overdraft, but use it, i.e. stay in red and then repay debt), then apply again in half a year.

There were many articles on this subject, but I cannot find them now. Possibly this will be helpful.

P.S. Galstonian is right about electoral register, however it is important only for first applications. I am not on electoral roll yet, but have a few cards now and switched dozen without problems. Be aware that frequent changing of your address also reduce your chances.

Galstonian

No debts, no history is also not the whole story I'm afraid.

A current account or mobile phone will show up in your credit file. The more information on well run accounts the better. Getting a first card can be difficult. As advised try approaching your own bank. Buy something from a mail order catalogue and pay for it weekly, you'll effectively get more payment history this way, it may not make a difference but it could be worth a shot.

If you intend to stay resident here then first steps I think should be get your CRA files and approach your own bank. If you are not intending staying then go to your employer.

lucylou

thanks everyone for your help.Sorry I didn't specify.I have been living in Scotland for two years in October.I have dual nationality british italian.I got my driving licence here in Scotland .Have worked here two years .I have an account with Tsb but just changed to Abbey.the only thing is I have applied for a tesco credit card putting my tsb account not my new one .Second thing is I have just recently started a new job.Do you think taht counts?I will be gaining a higher salary so mabe it's a bonus.Do you think I should contact t Equifax?I don't want any credit card I would like to have the tesco one for the points.I am on the electoral roll but I will be voting from this year so I didn't vote last year.I had an account previously with tsb many years ago but used it up to about 10 years ago and never closed it.However when I came back to live here I had to open another one as they couldn't open the last one.Any other suggestions to have more credit for the tesco one?I've always had a debit card.Please help.Thanks

jonnyb

There are a few things you can try to improve the application. Assuming you have no credit at all, including a mortgage, then your credit file may be too "thin" to score well. If you are not single and living alone, you might be able to get Tesco to take account of the credit history of your partner or husband or parents, if any of them have a longer Uk credit history.

Legislation governing 3rd party data means that lenders are only supposed to consider info on you during an application, and any declared financial associates (joint accounts, etc). For people who have no associates and no history, there is the option to ask for other "household data" to be included in an attempt to boost the credit score. One example would be an 18 year old with no history asking for parent's data to be included.
Ask Tesco and see what they say. Good luck.

One last thing; you say you want a tesco card for the points. Read Martin's articles on credit card use. If you get a 0% card from another lender (MBNA are usually quite easy), the money you could save is likely to far exceed the value of the points you will get.

grumbler

lucylou wrote:

...I have just recently started a new job.Do you think taht counts?I will be gaining a higher salary so mabe it's a bonus.Do you think I should contact t Equifax?...

I think, new job is not a 'plus'. When you are with the same employer for a long time, this sounds better.
Salary: the higher, the better - of course.
Requesting your credit file is always useful. As far as I remember it costs just about £2.

I agree with Jonnyb that there is no sense to get stuck with the Tesco card. Some other credit cards pay 0.8% - 1% cashback without minimum spending limit (see Martin’s article ). They can be used in Tesco along with (in addition to) the Tesco Clubcard.

lucylou

I am single and noone else is living with me.I always pay everything in full.So do you think I should try a cashback then?Thanks to everyone who helped me