Can't get a credit card

CBH88

I have recently graduated and have had a full time job for the past 4 months, and I want to start building my credit rating so I can get a mortgage in the future.

Trouble is, no bank will offer me one, and I don't understand why.

I was with Barclays bank for about 5 years, but switched around a year ago to Lloyds TSB to get a student account with an overdraft limit of £1000. Whilst at university I used my overdraft, but never more than around £700 at the most, and I always paid it off with part time work.

Since having my job I have been upgraded to a graduate account on Lloyds. I use my overdraft up to about £300, but am in the black for about half of the month.

I've tried applying to Halifax and directly through Lloyds for a credit card, but have been turned down by both. I can't understand why- I have a full time job, I have never gone over my overdraft limit, and I have never had any problems with money. I don't have any store cards either.

My friends, in comparison, are either all in their overdrafts by over £1000, or are in the plus significantly, and all got OFFERED credit cards by their bank.

Any ideas?

Tixy

What credit cards have you tried applying for? have you tried for a subprime credit card to start rebuilding your rating?

Have you obtained copies of your credit files to see what is on them, check everything is correct, check it shows you are on the electoral roll etc?

Offline-User

This can only be good for you... looking around the world we see whole economies crashing because of debt your safer without one.

CLAPTON

have you looked at your credit records in case somthing is amiss

obviously you are on the electoral roll

CBH88

Thanks for your replies, I am on the electoral roll.

What credit checking website would you recommend?

I'm just going to use it to pay the monthly shop and bills, so that I can improve my rating for spending and repaying. I will be looking to get a mortgage in a year or so, but I have no hope with no credit rating.

Lith

If your bank refuses you, then try

vanquis
paypal
mbna

for credit cards (you will no doubt be accepted for one of them 'vanquis' most likely

Tixy

CBH88 wrote: »

Thanks for your replies, I am on the electoral roll.

What credit checking website would you recommend?

I'm just going to use it to pay the monthly shop and bills, so that I can improve my rating for spending and repaying. I will be looking to get a mortgage in a year or so, but I have no hope with no credit rating.

There are 3 credit reference agencies. Experian (the largest), equifax (nearly as big) and callcredit/noddle which is much smaller.

Don't pay for a credit 'score'. You just need a copy of your credit file - the £2 statutory one is fine, usually recommend getting experian and equifax to start and see what is on them.
There is an option of free trials at both those agencies - only consider them if you are sure you if you will remember to cancel within 30days.

Sensible plan to use and repay - and once you've checked your credit files I would try for a subprime card.

CBH88

Thanks for all your help, I signed up for a free trial on Experian and I think I've found the problem- my phone bill was still registered at my old address which I have recently moved from. Cross fingers that sorts it out!

biscit

The problem might be you have no credit history and haven't been at one address for very long.

I had problems when I was a recent graduate- the issue was that my bank never reported my student or graduate credit to the reference agencies as I was always OK with it. I actually had a credit card from my bank at the time, but had no "history". Negative credit history is bad, but you can be rejected for a lack of positive history by some providers.