Should I get a CC?

Kazza242

duncanc wrote:

today I spent 20 minutes with a nice lady in the Nationwide filling in her forms on the computer, until at the end it told me I had been declined, no reason given. Apparently I get a letter confirming why in about a week's time.

So, while I wait for that, are there any other credit cards which don't charge on foreign transactions? As I expect to use this almost exclusively for payment to a company in the US, this would be handy.

I wouldn't rush into applying for other credit cards until you find out why your application to Nationwide was declined. If you have lived at the same address for a reasonable period of time (around 3 yrs), are registered on the electoral roll and don't have an excessive number of credit cards, other debts or CCJ's, then it is odd that you've been rejected. I think it is definitely worth finding out what is on your credit file. You can do this by contacting Equifax and Experian.

Applying for other cards without first finding out why you've been rejected would be unwise. This could damage your credit score further, as it's likely that you'll be rejected for other credit cards too. There may be an error on your credit file that is causing you to be rejected, so I would investigate that further before applying for credit with other providers.

Of course, not having built up a credit history before, could also be the reason you were rejected. It is a good idea to get your credit file from Equifax and Experian and wait for the letter from Nationwide before doing anything else.

duncanc

thanks for the advice, I'll wait and see what the reason is before going any further with this. I found an article that gives me a few other cards with low or zero charges on foreign transactions:
http://www.fool.co.uk/news/comment/2005/c050322c.htm

newfoundglory

I'll quote myself here:

newfoundglory wrote:

The only issue is getting accepted for a Nationwide card, since they don't use Risk Based pricing for applications... in other words, one size fits all. They won't up the card interest rate, they will just reject the application if they consider your risk as a potential customer too high.

I think you will find the majority of applications for nationwide credit cards are actually rejected unfortunately... but definitely check your credit file first and appeal if necessary. If you have no credit history, this will most definitely be the reason I should think... i reckon a home phone number is a must-have for nationwide debit and credit card application scoring too.

Galstonian

newfoundglory wrote:

I think you will find the majority of applications for nationwide credit cards are actually rejected

What information do you base this assertion on? Certainly because of their attitude to risk they will probably reject more but I don't know how you get from there to 'the majority'.

deemy2004

I think all the card companies are getting tougher as we move from a low interest rate environment to a normal interest rate environment....


You see the secret to the 0% deals was not low UK interest rates but low US interest rates

I.e. Borrow at 1.25% in the USA and loan it out in the UK, with plenty of cashflow to make a profit and offer plenty of 0% deals... and ALSO make HUGE gains on the currency..

That IS changing........ rapidly.......... as we speak.....
so to speak...

duncanc

ok, got my letter from the Nationwide. Suitably vague, but it may or may not have something to do with Experian's reference for me. So I guess next step is to check online what Experian are saying about me. Probably due to lack of credit history. I'll probably end up just getting a CC with my current bank, Natwest, as I assume they won't be so worried about that lack of credit history?

grumbler

Yes, lack of credit history is common reason of the first credit card application failure. Nationwide rejected my first ever application even after I had a current account with them for 1.5 years. You are right that the best way now is to apply to your bank. As a last resort you can apply for Capital One card just to start credit history (read for example this thread).
Meanwhile you can try to apply for Nationwide flex account with debit card as I advised you before.