Credit Card And General Advice Requested

PhenoM · 1 May 2011 at 5:50PM

Hello folks

Been lurking around for a couple of days and have picked up a lot of useful pointers. Thanks

My query:

I have been in the UK for 8 months now. And my first account which I opened was a Lloyds Silver back in September, 2010 paying a monthly fee of GBP 8.

Since then, I've asked my bank to provide me with a credit card to help build my credit history. But they've been refusing. I even asked for a secure credit card but they said there's no such concept.

In these months, I never applied for a credit card online, since I did not want to get rejected, negatively affecting my credit profile. I just kept asking Lloyds and they kept refusing. Nor did I apply for any form of credit or EMI anywhere.

Checked my credit report and credit score with Experian a few days back, and my score is 845 with no missed payments. I am also on the electoral roll.

My credit accounts as of right now are with:

a. Lloyds
b. Vodafone
c. British Gas

Seeing this report, I again contacted Lloyds, and they said they still couldn't do anything. I also asked for my risk score and I was told it's a 2. I read around and found it's a very good score. Am I correct ?

Fed up of Lloyds now, I applied to Capital One yesterday, my first credit card application in the UK. I was accepted as soon and I put in all the details and made to sign an electronic agreement, being told it was much faster than the traditional method of sending the agreement across and signing and sending it back. I did not choose the Payment Protection Insurance though, seeing on TV what a big racket it's making these days.

So my question is:

1. Where do I go from now ?
2. Am I eligible for a mainstream card ?
3. I want to dump Lloyds and go in for something like First Direct etc. Just one bank that handles all my finances like current, savings, credit card etc. Not really looking for an OD, but if it helps build up my credit score, I don't mind. Can and should I ?
4. I know too many applications for credit in a short term is bad. So how long should I wait before applying for a mainstream card, if I can ? Or a good, solid bank account which gives me all the services I seek.

I've never really had a problem with Lloyds, infact they have always been polite and courteous. But now, I just want more and they won't help me.

I hope I've covered all the points. Please let me know if you require any more info and I'll provide the same. Looking forward to all your input

spikescot2005 · 1 May 2011 at 6:31PM

What card did you get with capital one.

taxsaver · 1 May 2011 at 6:51PM

Be careful switching bank account so soon as that will lower your credit score as it shows a degree of instability again.

You could consider opening an account with First Direct, but not closing the Lloyds one, that way 'time with bank' can still be truthfully answered based upon Lloyds. When you are more established and have what you need from FD then you can close Lloyds.

PhenoM · 1 May 2011 at 7:10PM

spikescot2005 wrote: »

What card did you get with capital one.

I applied for the Classic card. It said it's helpful in establishing a credit history or for people new to credit.

taxsaver wrote: »

Be careful switching bank account so soon as that will lower your credit score as it shows a degree of instability again.

You could consider opening an account with First Direct, but not closing the Lloyds one, that way 'time with bank' can still be truthfully answered based upon Lloyds. When you are more established and have what you need from FD then you can close Lloyds.

Sound advice. But would you suggest applying for the account so soon after applying for the credit card or should I wait for a couple of months ? Will it reflect positively in my credit report that I've been accepted for a credit card from Capital One. I basically want to get out of the sub-prime market and enter the mainstream market asap.

Should I apply for just a bank account with First Direct or Bank account with CC and OD ? Or should I go with some other bank ?

Sorry for so many questions. But I am kinda OCD about having a perfect credit history and a couple of good credit cards which I can keep repaying in full.