Help - I don't know where to start!

Sve_2

Hi all,
I have the following problem - I have only recently moved to UK (since October last year) and from what I understand reading this board I do not have any credit file as I have not got any credit history - no loans, no credit cards, etc. I only have Natwest Current Plus account (no overdraft).

So, I have decided to apply for a credit card in order to start building my credit history. The thing is I fallinto catch 22 of some sort. In order to have credit card, I need to have credit history and in order to have credit history I need to have a credit card.

I read the section on the high interest credit cards and decided to apply for a Barclay Initial Credit Card. I called their customer centre and explained my situation. I also asked them whether the fact I do not have a credit history could proove to be negative regarding the outcome of the application - the Customer advisor said - It will not be a problem, as this product is designed for people like you. So I applied online and a week later got refusal. Called Barclay and asked them why was I refused - their answer was - You have no credit file at all.

I then thought I would apply for Capital One classic card. AGAIN spoke to them on the phone and explined my situation. They also said there shouldn't be a problem. I also told them I have applied for Barclay's Initial card and got turned down. They again confirmed it shouldn't be a problem. I applied online and seven days later received a letter, with which they requested more douments - proof of ID and proof of address. To cut the long story short - I sent the documents but then they said in order to go ahead with my application I should apply for an overdraft (!!!) with Natwest, which I refused to do and cancelled my application.

SO, I don't know what to do now - looks to me that in order to have ANYTHING which could help you build a credit record (credit card, contract phone, etc.), you need to have ... a credit record...

I don't know what to do now - any advice would be greatly appreciated.
Thank you in advance!

CLAPTON

your best bet is to apply to nat west as they already have some knowledge of you.. go into a branch if possible and accept anything they offer you. it doesn't matter about the APR because of course you intend to pay the full amount each month

Sve_2

Hi CLAPTON - thank you for your reply.

I was thinking of actually doing this but I wasn't sure whether it was worth trying as I know, from what I read here, that the "normal" credit cards get issued to people with a good credit rating and since I haven't got one I thought it would be pointless to try in the first place...

thesaint

How much was the overdraft going to cost you?

Sve_2

Hi thesaint,

It isn't a matter of how much it would cost - I just don't want to have an overdraft as I don't like the idea of being tempted by money that is not mine - if you understand what I'm saying. I don't see why people should be made to potentially go into debt (because having a credit card or overdraft is exactly this) in order to have access to services - just seems a bit unfair to me...

thesaint

Sve wrote:

Hi thesaint,

It isn't a matter of how much it would cost - I just don't want to have an overdraft as I don't like the idea of being tempted by money that is not mine - if you understand what I'm saying. I don't see why people should be made to potentially go into debt (because having a credit card or overdraft is exactly this) in order to have access to services - just seems a bit unfair to me...

But, I thought that the purpose of your post was to get a credit card(being tempted by money that isn't yours)?

I do not know if you know the saying "Beggars can't be choosers"?

Sve_2

No - the purpose of my post was to ask how to get a credit card in order to build credit history, which would allow me access to services. My aim is not to have a credit card just for the sake of having one or because I want to max it out, etc.

And yes, I've heard of the saying but I think it does not apply to me. Again - I want a credit card so I can build credit history. I have also posted here, so that if anybody knows another way in building credit history could give an advice.

Cheers,
Sve

thesaint

But you would have to spend on the credit card to build your history, it is no good having one that isn't being used.

CLAPTON

the reason why your bank may give you a card is that you already have a relationship with them... ( and they dont have to do any id checks as you are already a customer).

While there is no guarentee, if they give it, it will probably have a low credit limit but that wouldn't be a problem for you.

It best to use it regularly and set up a DD to pay the full amount each month. This is the easiest way of building up a positive credit record.

Sve_2

@ thesaint - yes I will use it but will pay it off in full and set up DD.

@ CLAPTON - I will try and see if they will give me a card. And I will, of course, pay it back in full through DD.

nomoneytoday

Why do you want a credit card?