Capital One Secured - How long to wait?

Plxply

Hello,

I've had a Capital One Secured Card since around late January, I know it's too early now but when would the optimal time be to apply for their progress card?

I currently pay the balance in full each month and I've never gone over 50% of the credit limit. I would attempt to go for their classic card but it appears as an existing customer I can only apply for the progress card.

Furthermore is there any reason to increase the speed of my credit building or is my current method adequate? For example would it be worthwhile getting another sub-prime credit card and paying that off in full every month or would it have no effect at all? Are there any other good ways to build a credit with little or not cost? Especially as the current method is costing me nothing.

Thanks,

wiseshark

Plxply wrote: »

Hello,

I've had a Capital One Secured Card since around late January, I know it's too early now but when would the optimal time be to apply for their progress card?

I currently pay the balance in full each month and I've never gone over 50% of the credit limit. I would attempt to go for their classic card but it appears as an existing customer I can only apply for the progress card.

Furthermore is there any reason to increase the speed of my credit building or is my current method adequate? For example would it be worthwhile getting another sub-prime credit card and paying that off in full every month or would it have no effect at all? Are there any other good ways to build a credit with little or not cost? Especially as the current method is costing me nothing.


You've only had the secured card a few months. I think you should wait at least 6 months before applying for either the classic or progress card. Remember, you are trying to establish some credit history here and that means you have to be patient.

In a few months time, you could apply to your bank for a credit card, but only if you have managed your current account well.


Apart from that, it will really take 3-4 years to establish a good enough history before applying for the mainstream cards.

Plxply

wiseshark wrote: »

Apart from that, it will really take 3-4 years to establish a good enough history before applying for the mainstream cards.

Don't worry, I know it will take a while and I'm not planning on applying for a progress card until I've had it for around a year. I'm just wondering if I'm doing everything possible to get a good credit history, it's not that I have a bad one, it's that I don't have any and I was wondering if having a second card even if subprime will speed up the history building or will it just look negatively?

Paul_01

Getting a second card will do no harm to your file in the medium to long term. In fact, it will do you a whole heap of good.

Plxply

Paul_01 wrote: »

Getting a second card will do no harm to your file in the medium to long term. In fact, it will do you a whole heap of good.

I've got a copy of my credit report from Noddle, Capital One has reported for January, February and March that payments are up to date and the balance has always been cleared in full. My HSBC and Metro Bank current accounts are also showing as being in credit and "managed within the terms of your agreement" for the last three months.

I hold a few other current accounts especially with Lloyds TSB and Nationwide, the majority of my cash flows through Lloyds TSB but it's an under 19's account so has no credit facility. Would it still be a good idea to get a statutory report from Equifax and Experian too to see how they are going and what accounts are being reported?

I'll apply within the sub-prime market for a second card, but is there any that is recommendable? If I get declined I assume it isn't a huge problem as I won't be applying for another card until September or next year for the Progress. Although I still am concerned that somehow having two subprime cards might look bad to a future lender even if they're paid off in full but that may be my paranoia.

I know it's a long shot but could I potentially apply for Lloyds Platinum card as it's their highest interest card and they are who I manage my current account with. Would it be a good idea to call Lloyds TSB and ask the rep if they think I will be successful in applying, I doubt they will give me my internal score but I'm hoping they will give me a general idea.

Of course, I'm also planning on going to university in September so I don't want too many searches on my credit file as I will be applying for a student bank account with a credit card.

Sorry for the long wall of text, I just want to make sure I'm doing everything "correctly" and if there's any way I can further strengthen my credit history.

Paul_01

If you ask in a Lloyds branch, they should be able to give you your internal score.

Vanquis seem to accept where other cards don't, so as long as you pay it off in full each month the high interest charges won't apply.

Lack of credit history may cause a decline with the Lloyds credit card, but there's only one way to find out. One additional search isn't the end of the world either.

Plxply

I just made a quick call to Lloyds and asked if I would be eligible for any of their credit card products, after running a "quick check" which I assume is an internal score he said I would not be able to have any which was expected. I'll look around the sub prime market, I know Vanquis have high acceptance rates but it seems there are a lot of complaints also.

Dr_Cuckoo3

why not apply for a Metro Bank credit card since you have a current account with them ?

I have a Metro Bank current account and think it would be quite easy to obtain their credit card

I am not impressed with Metro Bank generally so I have not applied

I received a pre - approved credit card offer via Nationwide Building Society internet banking and I now have the card , I would recommend using your Nationwide account in a manner which may entice them to offer you their credit card

Plxply

Dr_Cuckoo3 wrote: »

why not apply for a Metro Bank credit card since you have a current account with them ?

I have a Metro Bank current account and think it would be quite easy to obtain their credit card

I am not impressed with Metro Bank generally so I have not applied

I received a pre - approved credit card offer via Nationwide Building Society internet banking and I now have the card , I would recommend using your Nationwide account in a manner which may entice them to offer you their credit card

I have the Metro bank account just for the free international withdrawals, I just have £50 sitting in there so I doubt they're likely to give me anything due to my account not showing any activity also when I opened the account I wasn't granted an overdraft (although I did open it on my 18th birthday). I currently hold a cash ISA with Nationwide containing around £4,000 but I don't think they take savings into account do they?

Dr_Cuckoo3

you said that you had a Nationwide current account earlier , so my reply was based on that

They will not pre-approve on the basis of your savings account

When I asked Metro Bank about it's credit card , the impression I got was that they just press a button and get a decision (which can be appealed with bank statements)

I wasn't offered an overdraft when I opened my account , your account conduct won't go in your favour but I don't think they pay much attention to account conduct eg they don't pre-approve good customers

Do you know why Lloyds TSB are unwilling to grant a credit card ? - plenty of people on this forum know their Lloyds TSB behaviour score

Adverts on Lloyds TSB internet banking are an indication of what they think of your creditworthiness eg credit related adverts

You could apply for a Sygma Bank Football credit card

http://www.creation.co.uk/football-cards.html

Plxply

Dr_Cuckoo3 wrote: »

you said that you had a Nationwide current account earlier , so my reply was based on that

They will not pre-approve on the basis of your savings account

When I asked Metro Bank about it's credit card , the impression I got was that they just press a button and get a decision (which can be appealed with bank statements)

I wasn't offered an overdraft when I opened my account , your account conduct won't go in your favour but I don't think they pay much attention to account conduct eg they don't pre-approve good customers

Do you know why Lloyds TSB are unwilling to grant a credit card ? - plenty of people on this forum know their Lloyds TSB behaviour score

Adverts on Lloyds TSB internet banking are an indication of what they think of your creditworthiness eg credit related adverts

You could apply for a Sygma Bank Football credit card

http://www.creation.co.uk/football-cards.html

I have both a current account and an ISA with Nationwide as they require you have an account with them to open an ISA. I don't necessarily need a second credit card, everything is fine but if getting a second one will help to further establish a more solid credit history then I will.

Most of the advertising directed towards me is about the internet banking features, I assume it's because I'm still using their Under 19's account as I can't move to a student account until I get accepted so the account features are rather limited.

The APR of the Metro Bank credit card is extremely low, especially compared to the current 35% I'm getting with Capital One so I doubt I would be accepted. I know that they can adjust it, but as the account is just in credit and unused I doubt I'll be approved.

I think also it could be that I don't have a job as such, all of the money I earn is through doing mainly computer related things for other people (whilst doing a-levels it keeps the work load good) so it comes in through bank transfers from family members and friends.

I appreciate everyone's feedback so far