Capital One World Mastercard

Southernman

This credit card is being offered for customers with a 'perfect' credit history. I've never had any charges nor have i ever missed payments for anything. The only borrowing i currently have is the mortgage (applied for Jan 2011). This would be my first credit card (other than a student one i never used and isn't on the Natwest systems anymore!). I also have a £1250 overdraft which i never use.

Now there are a few restrictions.

One being the £20,000 wage. Currently i earn £18500 basic wage, however i also get bonus every three months. Admittedly this bonus isn't guaranteed yet over the last 12 months this has amounted to £2600 before tax.

As a homeowner i also rent out my spare room through the rent a room scheme organised by the government and get a monthly income from that, again i fully understand it's not guaranteed income.

Realistically do i meet the criteria for this credit card?

[Deleted User]

lack of credit history maybe a problem

izools

Southernman wrote: »

This would be my first credit card

This is where you fall down.

As you've got no history on your credit file showing how you'd handle a credit card account there's no way for Capital One to know how you'd cope.

They'd be positive factors showing your mortgage is always paid on time and your bank account is run correctly, however they'll be after the sort of applicant that's used credit cards before and has evidence on their credit file of being able to use credit cards responsibly and in a low-risk manner.

Your income shouldn't be an issue, if your P60 / payslip "Year to date" earnings figure show your bonuses, put them on the application.

I do however feel you would be turned down due to your lack of credit card history. You'll be better off starting with a Capital One Progress or Barclaycard Gold.

Once you've had one of these for 12~24 months you'll stand a much better chance of approval for a "premium" card like Capital One World or Amex Platinum Cashback.

Good luck! :beer:

EDIT: Noticed you moved in January 11, too? This might be a risk signal as well. Creditors like stability, so again, 12-24 months residence at the same address shows the minimum level of stability required for premium cards like the Cap1 World.

Southernman

Yeah but i work for a bank and i see people who have recently moved be accepted for a credit card although i am aware it's more likely to be accepted after 3 years of residence. Would have thought that if i can afford a mortgage which is surely the biggest debt you could ever obtain then a credit card is no issue at all. I only wanted it for cashback purposes.

kadiea

I'm guessing you bank with natwest still? why not get their world mastercard?

Southernman

I'm with Natwest but their world card equates to 2500 points or £2500 for a £10 voucher which mathematically isn't the best deal plus it's not cashback in penny form either.

izools

Southernman wrote: »

Yeah but i work for a bank and i see people who have recently moved be accepted for a credit card although i am aware it's more likely to be accepted after 3 years of residence. Would have thought that if i can afford a mortgage which is surely the biggest debt you could ever obtain then a credit card is no issue at all. I only wanted it for cashback purposes.

You're right, people who have recently moved are still able to be approved for credit, but they may have been given a lower apr / higher limit having been at their address for longer.

In regards to scoring models for credit cards vs mortgages they're totally different accounts.

Most importantly, Mortgages are secured against property. Credit cards aren't. Default on a mortgage, the bank sell the house and get their money back - no such thing with credit cards.

So already the risk to a lender is higher with credit cards.

Also, Mortgages are a fixed monthly repayment already calculated to be part of someone's priority expenditure. Credit cards don't have fixed repayments.

Some people max them out and only pay the minimum, other's repay them in full each month, and all the other variations in between.

Capital One (and other lenders) will want to see what type of customer you are - do you max out your card and only pay tiny amounts off? Do you repay in full? Do you use your card all the time or only once in a blue moon?

Perhaps your mortgage is paid religiously each month because you've got a DD set up taking it out on payday but you struggle to pay credit cards on time because there's no DD and you forget / don't plan. I'm sure you aren't that type of customer from how you write your posts but how are credit card companies to know this?

They will have set a picture for the type of customer they want and in your case they wouldn't be able to see if you fit that criteria.


Frustrating I know, but trust me, bag an easier to get card and you'll be in much better stead for a cashback card in time for next Christmas. Abstain on the basis other cards don't offer cashback, and you may never have a rewards card. You gotta start somewhere!

Pop your details in here and see what it comes back with:

http://www.moneysupermarket.com/credit-cards/smart-search/

Let us know how you get on :beer:

Southernman

Now looking at other options, the Leeds Building Society offers a cashback card and that search suggested there would be a high chance of me getting it. Only thing is i can't work out if you need a current account with them for the cashback to be deposited each Jan!

izools

Ah, just had a look for you -

Point 4 reads:

Your cash back will be credited to your Leeds Building Society Credit Card account on 1 January each year and your accrued cash back will be shown on your monthly statement.

So the cashback is deposited back in to the credit card account rather than a bank account.

The card itself is actually an MBNA card, just has "MBNA" crossed out and "Leeds" written on instead, so to speak.

No requirement to hold a Leeds Building Society bank account :beer:

Good luck!

thegoodman

If I was you I will try for cap one. I think you will get it since you are a home owner

luci

I think you should still apply for a Capital One World Card. The worst they can do is refuse the application. However they may give you one, but with a low limit. If they do that you can apply to have the limit raised after a few months of using the card responsibly.