No idea why I cant get a credit card

twinklepippa

Hi,

I was wondering if someone could help me. I have applied for a couple of credit cards over the last 2 years and always refused. I tried with my bank HSBC and got turned down due to suspect account activty and Tesco just said no. I have carried out a credit check and I am in the green with nothing showing which looks strange. I have a £250 overdraft which i have never used. I work part time and have an OK salary.

I am 33, one child, have my own property with a small mortgage which i got last year no problem - i own over 3/4 of my house myself. I have no debt apart from my mortgage. I have one store account which is always paid off. I have savings, 2 current accounts both have never been overdrawn. I have never had anything which I can think would give me a problem. Everything is paid on time if not before.

I would like to get a credit card so i am protected for shopping on line and when I am abroad. I really would appreciate some help with this as I am really stuck.

Many thanks

izools

Have you ever had a credit card, or one in the last few years?

If not, you need to start off with a sub prime card.

I recommend the Capital One Progress - you should get this as you have prior credit history, just not credit history with a credit card.

Once you've run the Capital One Progress account well for a year or two you will have built up a solid history of having handled a credit card responsibly.

Then mainstream lenders like HSBC and Tesco will be more willing to lend to you. As it is, you're an unknown. You've got no credit card history, so they can't tell whether you'd use the facility responsibly.

twinklepippa

Thank you for this, I have had a credit card in the past 10 years but only as an additional card holder.

I have followed your instructions and it was excepted so thank you. Im I best to use it monthly and pay it off in full to help my rating?

Thank you once again

CLAPTON

use it regularly for things you anyway buy (maybe petrol, groceries) and pay in full each month (maybe set up a DD for the full amount

this will show on your credit reports and cost you no interest

Venusflytrap

izools wrote: »

Then mainstream lenders like HSBC and Tesco will be more willing to lend to you. As it is, you're an unknown. You've got no credit card history, so they can't tell whether you'd use the facility responsibly.

I wonder though... the OP has a mortgage, a store card and overdraft - all credit, and has been responsible managing repayments over time. Isn't this a solid enough credit history to put them in good stead for a prime CC?

Don't see why a CC company would want to see a +ve track record of managing a CC in particular when a mortgage lender lends to first time buyers who don't have a proven track record of managing a mortgage.

Shouldn't any sort of credit do?

CLAPTON

Venusflytrap wrote: »

I wonder though... the OP has a mortgage, a store card and overdraft - all credit, and has been responsible managing repayments over time. Isn't this a solid enough credit history to put them in good stead for a prime CC?

Don't see why a CC company would want to see a +ve track record of managing a CC in particular when a mortgage lender lends to first time buyers who don't have a proven track record of managing a mortgage.

Shouldn't any sort of credit do?

mortgages are secured debt and they use different criteria to unsecured lenders (size of deposit, salary to mortgage ratios)

the OP doesn't have an overdraft, merely an unused OD facility so it is unlikely to be recorded on their credit reports

izools

Venusflytrap wrote: »

I wonder though... the OP has a mortgage, a store card and overdraft - all credit, and has been responsible managing repayments over time. Isn't this a solid enough credit history to put them in good stead for a prime CC?

Don't see why a CC company would want to see a +ve track record of managing a CC in particular when a mortgage lender lends to first time buyers who don't have a proven track record of managing a mortgage.

Shouldn't any sort of credit do?

Well evidently not, otherwise OP would have been approved for HSBC and Tesco

Prime credit card companies like to see how an applicant has handled the type of facility they're applying for in the past. Whilst OP can pay a mortgage - that doesn't prove they are going to be responsible with a credit card.

Loans & Mortgages have fixed repayments - you don't decide how much to pay each month, the bank does. Credit cards are a wholly different kettle of fish as you are in almost total control over how much you owe month on month and how much you repay month on month.

Prime lenders will want to see evidence of your spending / repayment pattern being responsible on past credit card accounts, and loans / mortgages / overdrafts don't show this.

YorkshireBoy

CLAPTON wrote: »

the OP doesn't have an overdraft, merely an unused OD facility so it is unlikely to be recorded on their credit reports

Why is it unlikely CLAPTON?

Reason I ask is all my current accounts are listed on my reports, whether they have O/D facilities or not...

LTSB x 3
Halifax x 4
YB
Nationwide
NatWest
HSBC
A&L

The only one that never appeared was an old YB account that was opened 30 years ago.

They're all shown with both limit and balance, so in the OP's case it'll show:

Limit: £250
Balance: £0

And that's good isn't it? I mean, it shows they're managing their day-to-day finances well.

Venusflytrap

izools wrote: »

Loans & Mortgages have fixed repayments - you don't decide how much to pay each month, the bank does. Credit cards are a wholly different kettle of fish as you are in almost total control over how much you owe month on month and how much you repay month on month.

Makes sense - secured vs unsecured debt; the former being more manageable by the lender than the latter.

lisyloo

Why is it unlikely CLAPTON?

Reason I ask is all my current accounts are listed on my reports, whether they have O/D facilities or not...

Well I'd say because a current account without an overdraft is not a credit account.

YorkshireBoy

lisyloo wrote: »

Well I'd say because a current account without an overdraft is not a credit account.

You mean without an overdraft facility?

Even so, if you have a chequebook and/or debit card (full feature, not Electron for example) then it is indeed possible to overdraw the account because both these are/may be guaranteed* forms of payment...therefore the bank has to honour any such payments made with them.

Even with no overdraft facility in place, it's entirely possible that the presentation of an automated payment (DD/SO) may create an overdraft situation whether the item is paid or unpaid.


* In the case of cheques, only for the next couple of months or so.