Barclaycard Initial...

OffRoadOnly

After being declined for a 'good' credit card i used the Barclay card pre application form. it said i had a 70-80% chance of a platinum and i 80-90% chance of getting the initial. I decided to go for the initial to build my way up...

My first credit card was the capital one card which started at £500 and went to £1000 after Four statements, but i closed the account after about 2years because there was nothing going on with it 18months at the same limit.

My credit history started at the age 18 when i used black horse finance for a bed (just to build my score up) then my credit card and a black horse car loan for £3500.

I thought my history was excellent and very clean but something is effecting the way lenders see me.

Im now 21 and looking to further build my history so once i recive the new card what's the best way to use it? Purchase something then pay it off in full or pay it off monthly? i payed my capital one off monthly(£150p/m) and getting stung by interest too. But now im a little confused as to which is the best way.

Thanks

izools

TBH I wouldn't say there is anything about your credit history you need to worry about if at the age of 21 you are given a 70-80% chance of approval for a barclaycard platinum.

It matters not if you repay in full each month or leave a running balance on the account as long as you follow these simpls rules:

> Keep your balance under 50%~66% of your limit at all times
> Never pay just the minimum - pay well above the minimum
> Ensure not to accrue too many lines of credit - ensure your total available credit is at all times under 50% of your annual income
> Ensure not to accrue too much debt - ensure you owe little enough to be able to clear it all within a year if you chose to
> Don't apply for credit more than two or three times in any six month period
> Don't chop and change too much - creditors love to see stability, so two cards that you've had for years on end will look much better than taking out a new one every few months and having accounts that haven't been open very long

Sounds like you've been checking all these boxes already, so what can I say? Carry on!

Ralphy101

Buy something... wait for the statement ... pay it before payment due date.

This will give you a nice green 0 on your credit profile.

Do this for 6 months and you will see a marked increase in the way lenders see you.

Stick with small purchases first - and dont be tempted to spend more then you can afford to pay - always keep in the back of your head the reasons why you are doing it ( to build credit ) and not to fund an unaffordable lifestyle.

And all of what izools said!

I dont see why you are going for the initial - when you are being offered a platnium.... As Izools said - its seems you have no need to build a credit score.

OffRoadOnly

izools wrote: »

TBH I wouldn't say there is anything about your credit history you need to worry about if at the age of 21 you are given a 70-80% chance of approval for a barclaycard platinum.

It matters not if you repay in full each month or leave a running balance on the account as long as you follow these simpls rules:

> Keep your balance under 50%~66% of your limit at all times
> Never pay just the minimum - pay well above the minimum
> Ensure not to accrue too many lines of credit - ensure your total available credit is at all times under 50% of your annual income
> Ensure not to accrue too much debt - ensure you owe little enough to be able to clear it all within a year if you chose to
> Don't apply for credit more than two or three times in any six month period
> Don't chop and change too much - creditors love to see stability, so two cards that you've had for years on end will look much better than taking out a new one every few months and having accounts that haven't been open very long

Sounds like you've been checking all these boxes already, so what can I say? Carry on!

:beer:at least now i know i was doing things correct

Ralphy101 wrote: »

Buy something... wait for the statement ... pay it before payment due date.

This will give you a nice green 0 on your credit profile.

Do this for 6 months and you will see a marked increase in the way lenders see you.

Stick with small purchases first - and dont be tempted to spend more then you can afford to pay - always keep in the back of your head the reasons why you are doing it ( to build credit ) and not to fund an unaffordable lifestyle.

And all of what izools said!

I dont see why you are going for the initial - when you are being offered a platnium.... As Izools said - its seems you have no need to build a credit score.

i went for the initial as i was declined for a NatWest or Halifax card (i forget which one) so i thought that if they see me as a risk Barclays will too but, how much of a risk i am will be shown by what limit i get on the initial. Hopefully after 6months of paying my Barclay card of they see me fit for a platinum.

:A

Some nice advice here thanks Guys/(Girls?)

Ralphy101

OffRoadOnly wrote: »

:beer:at least now i know i was doing things correct





i went for the initial as i was declined for a NatWest or Halifax card (i forget which one) so i thought that if they see me as a risk Barclays will too but, how much of a risk i am will be shown by what limit i get on the initial. Hopefully after 6months of paying my Barclay card of they see me fit for a platinum.

:A

Some nice advice here thanks Guys/(Girls?)

yeah i get what you are saying but from the percentage scores - you have just as much chance of getting their top card.

It really does come down to what you are after... If the sole aim of you actions is to build a better credit score - then i would still use the 0% purchase platnium deal. -

Why? Because lets say you did balls it up and spent more then you should - as long as you hit the minimum payments - that debt isnt costing you anything for at least a year - and as long as you hit the minimum payments you have the flexability of card tarting to another 0% Balance transfer card further down the line - still achieving a 0% debt and bulding a credit score by getting green 0's.

Whereas If you "balls'd" it up on the intial - its a pretty heft 29.9% apr you would be paying on your debt.

There my own personal opinions anyway.

forgot to mention - you can ask for a credit limit increase a little while after ( 3 or 6 months cant remember) - as long as you keep the payments tidy.

book12

Paying the card off in full is the best option.

Are you with Barclays? If so, go into branch to see if you have pre-approved for a credit card. If you are, you have a high chance of being accepted. You will also know your credit limit too.

I guess you can go for the Platinum card. If you are rejected, they could offer you an alternative.

Barclaycard also increases your limit from time to time automatically.

OffRoadOnly

Ralphy101 wrote: »

yeah i get what you are saying but from the percentage scores - you have just as much chance of getting their top card.

It really does come down to what you are after... If the sole aim of you actions is to build a better credit score - then i would still use the 0% purchase platnium deal. -

Why? Because lets say you did balls it up and spent more then you should - as long as you hit the minimum payments - that debt isnt costing you anything for at least a year - and as long as you hit the minimum payments you have the flexability of card tarting to another 0% Balance transfer card further down the line - still achieving a 0% debt and bulding a credit score by getting green 0's.

Whereas If you "balls'd" it up on the intial - its a pretty heft 29.9% apr you would be paying on your debt.

There my own personal opinions anyway.

forgot to mention - you can ask for a credit limit increase a little while after ( 3 or 6 months cant remember) - as long as you keep the payments tidy.

hopefully if i use it for purchases and pay it off monthly they take me to the platinum card as i cant be far off if im not at that level already. max limit on initial is £2500? i should be somewhere near that... but if i do mess up then i dont mine paying the interest since i did it with capital one for over a year :eek:

book12 wrote: »

Paying the card off in full is the best option.

Are you with Barclays? If so, go into branch to see if you have pre-approved for a credit card. If you are, you have a high chance of being accepted. You will also know your credit limit too.

I guess you can go for the Platinum card. If you are rejected, they could offer you an alternative.

Barclaycard also increases your limit from time to time automatically.

I bank with HSBC currently and have been with them for 6years, what do you mean by pre approved? is something BarclayCard Current account users get?

book12

OffRoadOnly wrote: »

I bank with HSBC currently and have been with them for 6years, what do you mean by pre approved? is something BarclayCard Current account users get?

Try your current bank first for a credit card, as they know your banking history. You also might be pre-approved too.

Pre-approved means high chance (or even guaranteed) acceptance of a credit product based on your customer profile with the bank.

izools

FYI guys OP has already applied for the Initial as he had 80-90% chance. Gold and Platinum gave OP 70-80% chance.

HSBC are hella strict now; they no longer use internal lending limits and no matter how well you run your current account and how much money you leave in the account / put through the account, they don't pre-approve you for anything.

They give you an account behaviour score and pre-set lending limits but these function differently from how they used to.

In the old days with HSBC (i.e. prior to November) you could borrow up to your lending limits without a credit search, or just a CC search.

Now, they credit search you for everything you apply for within your lending limits - i.e. increased OD, credit card, loan.

And they just flat decline you for any application over your lending limits. They say I have pre-determined lending limits of a £1,500 OD and upto £11,900 loan, but I asked for a small increase to my OD in case I needed it for moving costs (and to test the water) and they said NO - as a result of an Experian search. Strict sods. Fair outcome, though. Don't blame 'em.

Experian_company_representative

Some good advice above. Only thing I would add is to check your credit reports occasionally to make sure everything's in order and to make sure you're shown on the electoral roll at your current address. Many lenders are still being very cautious so while you should always investigate a credit refusal, don't take it personally. Izools' advice about spreading out your credit applications is sound.

James Jones

OffRoadOnly

izools wrote: »

FYI guys OP has already applied for the Initial as he had 80-90% chance. Gold and Platinum gave OP 70-80% chance.

HSBC are hella strict now; they no longer use internal lending limits and no matter how well you run your current account and how much money you leave in the account / put through the account, they don't pre-approve you for anything.

They give you an account behaviour score and pre-set lending limits but these function differently from how they used to.

In the old days with HSBC (i.e. prior to November) you could borrow up to your lending limits without a credit search, or just a CC search.

Now, they credit search you for everything you apply for within your lending limits - i.e. increased OD, credit card, loan.

And they just flat decline you for any application over your lending limits. They say I have pre-determined lending limits of a £1,500 OD and upto £11,900 loan, but I asked for a small increase to my OD in case I needed it for moving costs (and to test the water) and they said NO - as a result of an Experian search. Strict sods. Fair outcome, though. Don't blame 'em.

Yeah HSBC wont give me anything i got declined last year for a credit card.

Experian_company_representative wrote: »

Some good advice above. Only thing I would add is to check your credit reports occasionally to make sure everything's in order and to make sure you're shown on the electoral roll at your current address. Many lenders are still being very cautious so while you should always investigate a credit refusal, don't take it personally. Izools' advice about spreading out your credit applications is sound.

James Jones

Yeah some very good advice on here from day one people have been very helpful.

Anyway thanks people ill let you know what limit they give me and how i get on with it.