pearls of wisdom

pearls_of_wisdom

1st message so i'll try and get to the point i need advice regarding my situation i have lived in current property approx 1 year i show on electoral roll and for previous property,+ landline i have ZERO debt and ZERO credit and have just passed a credit score for bank account i'm now looking to APPLY for a credit card and as example just looked at capital one's details and it looks as though you're more likely to be accepted if you had a dodgy past than no past history.I have read conflicting advice i.e prepaid credit cards but there seems to be doubts as whether this improves you're position so in brief i have a BLANK CANVASS and want to build credit rating over next 9 to 12 months to obtain credit i'm not in need of money now but want to plan long term i.e 1 year many thanks.

CLAPTON

is that an additional bank a/c or your first bank a/c?
if the later then wait until the bank a/c is established and then try your bank otherwise try your bank now
otherwise cap 1, barclays initial, vanquis are suitable for 'beginners'
I'm assuming you are employed

pearls_of_wisdom

it's my 1st account ,self employed how long do you think i should wait before applying ? and where my own bank 1st or elsewhere ? i.e i will be paying nearly £3000 per month's earnings ist one was last month into bank account many thanks.

pearls_of_wisdom

hi,could you comment on my 6.52p.m from mon many thanks

CLAPTON

just to clarify

you have just opened your first bank account
and have paid £3,000 into it

how long do you have self employed records for?
what's your usual monthly income?

pearls_of_wisdom

self employed for 1 year but no records completed yet , usual monthly income £2000 to £2500 will be paying 2nd amount end march i suppose the whole purpose of this as i stated in 1st message i'm aiming to gain approx £15 to 20,000 credit in say 9 to 12 months not bothered if loans or credit cards am i living in cloud cuckoo land and should i still apply for 1st credit card now or wait until as i beleive you hinted at wait until i've operated my account for few months many thanks.

Any

Yes, you live in a cockoo land!
20k credit in a year? Good God, no chance in current climate.
You will need to manage your account well for few months (at least 3-6 mths) before applying for your first credit card with your bank.
Being self-employed will always go slightly against you so your first credit limit will be quite possibly quite low.
Then you will need to manage that account very well, spend on it and pay off on full every month..again for at least another 6 month before applying for another card.

izools

pearls_of_wisdom wrote: »

self employed for 1 year but no records completed yet , usual monthly income £2000 to £2500 will be paying 2nd amount end march i suppose the whole purpose of this as i stated in 1st message i'm aiming to gain approx £15 to 20,000 credit in say 9 to 12 months not bothered if loans or credit cards am i living in cloud cuckoo land and should i still apply for 1st credit card now or wait until as i beleive you hinted at wait until i've operated my account for few months many thanks.

You aren't going to get a line of credit that big. Just not.

I think it's an incredibly bad idea to even contemplate wanting such a line of credit - this suggests to me that you have already planned to take a huge deficit very soon.

Bad move. Your first credit card is likely to carry a sub-£1,000 limit. I would suggest applying for a Capital One Classic (should be fine even with no previous cards) and a Vanquis card.

Set up a Direct Debit with the accounts to clear the FULL balance each month. Don't spend more on them than you can afford to repay in full each month. They carry very high APRs and would cost a lot in interest to borrow on.

Once you've held a Cap One Classic and Vanquis card for 18+ months you will have built a solid credit history - of course if you pay on time every time and keep the balance well within the limit at all times - and should then be a good candidate for any other type of credit you may choose to apply for

Unfortunately expecting to be able to have built a comprehensive enough history to be trusted with a £20,000 loan or credit card limit in 6-9 months is totally unrealistic.

It takes many many years of building a solid, thorough portfolio of running a variety of smaller credit accounts responsibly and flawlessly, and demonstrating stability - i.e. holding accounts for a long time and not applying willy-nilly etc.

You'll be able to build a solid credit file over time, but to rush it is unfortunately to detriment your chances.

Good luck! :beer: