Climbing the credit ladder

vinny_vimto

I started a new job 8 months ago and have approx £1400 paid in to my account every month. When I first opened my Natwest account my credit rating was terrible and was only given a step account. In those 8 months a CCJ and 2 defaulted accounts dropped off my report, I have a default from 2 years ago paid off last week. In the effort to rebuild my credit rating i applied for Cap 1 CC (£200 limit) which I have had for 6 months and a Vanquis (£500) for 4 months all paid in full at the end of every month.

From my wages my out goings are £250 rent (live at home) £35 mobile phone contract - had for 3 months and £100 savings. The rest I spend on stuff I generally dont need such as clothes and nights out etc mostly paid on credit card.

Now even though I pay in full, I would love to drop the Vanquis card for something with a lower APR and more mainstream. I was thinking of applying for a Natwest yourpoints mastercard since the bank know my financial situation, how strict are their criterea?

Any other cards I should try first? Can you have a Cap 1 classic and progress together or maybe a sygma card of some sort? I am on electoral roll my report says my report has been searches 0 times in last 3 months and no late or missed payments in 12 months.

Will I have to run my existing accounts longer before I have a good chance of going mainstream?

Any advice appreciated

chanz4

If you still have the step account, answer is no. They will refuse anyone with this acc for credit, apply for the current account then close the step acc it will cause issues with them

vinny_vimto

chanz4 wrote: »

If you still have the step account, answer is no. They will refuse anyone with this acc for credit, apply for the current account then close the step acc it will cause issues with them

I upgraded online for the silver account about 4 weeks ago for the mobile insurance, free experian, love films and the HMV downloads. Would i still be automatically turned down?

skintdad

so long as it's a full current account you should be ok to not get an automatic decline. if you get a decline part way through the application it's normally because of their internal account data. I recently got a barclaycard gold with £1k limit at 19.9% and I still have a ccj showing on my CRF (expires in 10 months) but you need income above £17.5k pa. you can also soft search your credit file to give indication of acceptance before doing full application. mine said 70-80% for gold, 80-90% for initial 29.9% apr

skintdad

when you upgraded account did they offer you any additional products after you got confirmed acceptance? eg overdraft? did you do it online or in branch?

kadiea

You need to go into the bank and ask if you are pre approved for any of their credit cards. You probably wouldn't be but it's worth asking.

If you have only just recently moved to a current account from a step it might still effect your internal score with NatWest.

If you haven't pre qualified for a card at NatWest it may still be worth applying but I'd do it after six months of applying for your last credit card and be ready to appeal the decision especially with you having negative information on your credit file.

Also check the Barclaycard "pre application check" system which only leaves a footprint search.

https://letmechoose.barclaycard.co.uk/

vinny_vimto

skintdad wrote: »

when you upgraded account did they offer you any additional products after you got confirmed acceptance? eg overdraft? did you do it online or in branch?

No it says 'We have not identified an account that is eligible' I did it online so dont think it was a full upgrade just get the benefits of the account. So will have to go in branch and see if I can set up a current account or even try another bank.

The default from 2 years ago which I have just paid in full was Barclays so dont think I would qualify for any Barclay cards.

My salary is £22.5k p.a and my neccessary outgoings are very low which leaves around £1 k a month as disposable.

skintdad

I had 2 unpaid CCJs on my file when I became a Natwest customer. HBOS had frozen my account so I had to make payments towards my Halifax credit card and loan. They took most of my wages leaving me with hardly anything to live on. I needed a new account for my wages to go into. I was declined a current account (step didnt exist then) so took out an instant access savings account. In the mean time I paid off the CCJs and had direct debits coming out of the savings acc. I applied for a current account and was accepted and I now have a small overdraft with them. I had no missed payments on crf in the previous 12 months and no bank charges from natwest. If I were you I'd stick it out a bit longer and carry on building your relationship with Natwest rather than starting all over again with another bank

skintdad

your Barclays default is probably a bit too fresh to be looking for credit/accounts from new banks. its effect on your credit score will be diluted over time

vinny_vimto

Thanks skintdad its just frustrating I'm in alot better financial position then when I was a student and alot more savvy with money and credit. Guess its just keep on doing what I am and wait a little longer.

I have just rang Natwest, I would have to open a new account as a step account is a non credit account and even though I upgraded to a select silver because it was from a step account its classed as a no benifits account . If I did open a new current account my step account would not be taken into consideration when applying for a current account or for a credit card.

skintdad

i was told the step account was used to build a relationship with Natwest and then after 1-2 years of running account well that they would look at upgrading to a standard current account based on their internal data and credit check