Applying for credit card after 8 years

JustForThisOne

I hope I am posting in the right section if not pls. advice
I am sure it has been asked many time before so apologies in advance
If I apply for a credit card and get turned down will it show on my credit history and will it have a negative impact?
I have been sent by my bank Santander an offer for their credit card (not the cash back) were it is stated Guarantee Approval.
I have some reservation about applying because I fear that it may just be a piece of advertising and not a real offer as such (has anybody received and gone for it?)
I do not particularly like their deal but it could be a solution to get back into using credit card and once I had the Santander apply for one of choice.
Background history
I have a 10 yr. old mortgage, saving account and current account
7 years ago I also had 4 credit cards. I had huge sudden change of circumstances and I struggled but managed to always pay my mortgage and pay off 3 of the credit cards but 2 years later I defaulted on one. I kept one account open with Abbey / MBNA till the account was totally transferred to MBNA which put the interests to 34% so I closed it
Since then I have not had any credit card nor applied for one.
For what is worth I now score really high on Experian (964/1000) but the default is still showing because for 2 years I was paying toward the balance.
I will like to apply for a mortgage (buy to let) but I have been advised to wait till next year because of my adverse credit. The last thing I want to do is to jeopardise further my chances by been declined credit
What are your words of wisdom on this one?
Many many thanks

Tixy

A credit application search will show as just that. Not show as an acceptance or decline. Its generally advised to not have lots of applications very close together (e/g not more than 3-4 in a 6month period).

What is the date of the default on your file? a default drops off your file 6years from the date of default regardless of whether you pay anything after that default date or not.

If you just have 1 old default then one of the credit building 'bad' credit cards would often be a good place to start - see this article Bad Credit' Credit Cards: Best cards for poor credit scorers...

As to santander's guaranteed card I'm not sure - is there small print that still says subject to status? Could try for it and if not accepted try again in a couple of months for one of the subprime cards in that articla maybe?

JustForThisOne

thank you for the link just reading through it.
Correct I have just one default 12/2006
Actually my reports also shows 2 more "red flags" even if states the accounts were settled, ridiculus amount and all (57 pound and 240)
Very annoying. Should I contact the agencies which failed to amend the file or it is standard procedure that should still show ?
WRT santander application form I do not find anywhere Subject to status. Better ask inside a branch before trying maybe?
Are the bad one an acceptable option? Is not going to look like dirt everytime you take it out of your wallet? :o:(

Tixy

A lot of people probably wouldn't recognise a subprime card if they saw one! You only need to buy 1 or 2 items a month on it to start building a credit history. (You could always use it in selfcheckout supermarkets and petrol stations if you are embarrased!!).

Other potential lenders (say you apply to for credit in the future) can't see who you hold accounts with currently. So won't know you have subprime cards.

JustForThisOne

right ;-)
last question, am I right in thinking that I ought to get credit cards going again before I apply for btl mortgage or it will have no bearing ?

Tixy

Presumably your current mortgage shows all payments made on time?

Credit cards - or some form of credit are a good idea to build up a positive credit history before applying for any type of mortgage. Credit cards in particular show you can handle a revolving credit facility (which is slightly different from a fixed repayment credit account).
It certainly won't harm your chance of a BTL mortgage (providing you don't miss payments/ run up a massive balance of course).

ses6jwg

If you visit a Santander branch they can tell you whether your pre-approval is guaranteed or conditional acceptance.

If it is guaranteed it means it is 95-99% likely to be accepted, and you have already been assigned a credit limit. I'm not 100% sure, but I don't think a formal credit score is carried out just a fraud check.

CKhalvashi

ses6jwg wrote: »

If you visit a Santander branch they can tell you whether your pre-approval is guaranteed or conditional acceptance.

If it is guaranteed it means it is 95-99% likely to be accepted, and you have already been assigned a credit limit. I'm not 100% sure, but I don't think a formal credit score is carried out just a fraud check.

I’ve been forced back on the night shift as business partner is ill, so just asked his PA (her 2nd shift, worked for Santander before)

Guaranteed means that you have to have a bank account with them for 3 months, meaning that you won’t have to go through another credit check (same as when you apply for OD within the limits offered by the bank). In a similar fashion, you will also be pre-defined a credit limit.

Hope this helps

CK