Please can someone how a credit card work for a complete layman?

bbfc

mgmgrand1 wrote: »

Maybe the limit is so low as I have never had a CC? Surely they wouldn't give me a £5k limit. (Yes, it is definitely a Platinum Card. I've just double checked.) The best thing is to start using for fuel etc immediately and making payments asap.

If Halifax refuse to take the mark off I'll go to the financial Ombudsman.

Why? You applied for a CC, they refused and it'll be marked down as a search on your report. Thats what happens.

Credit agencies won’t be told whether you have been accepted or refused for credit, so this won’t be recorded on your credit report.

The fact that a lender looked at your credit record (with your permission) will be recorded and this ‘footprint’ will show the date of the credit check, the name of the organisation you applied to, and the type of credit you applied for. But it won’t show how successful your application was.

mgmgrand1

bbfc wrote: »

Why? You applied for a CC, they refused and it'll be marked down as a search on your report. Thats what happens.

Credit agencies won’t be told whether you have been accepted or refused for credit, so this won’t be recorded on your credit report.

The fact that a lender looked at your credit record (with your permission) will be recorded and this ‘footprint’ will show the date of the credit check, the name of the organisation you applied to, and the type of credit you applied for. But it won’t show how successful your application was.

Ahhh...I understand. So it is purely there as a search. That's a relief.

M

bbfc

mgmgrand1 wrote: »

Ahhh...I understand. So it is purely there as a search. That's a relief.

M

Exactly. Obviously the more searches that appear, the more desperate for credit you look.

Paul_the_Painter

Also look at it from their point of view, you applied for your 1st ever credit a couple of weeks ago, and now you want another one already! That in itself would probably flag up as a warning.

From their perspective either
a.) you were declined
b.) you were accepted and have already run it up to the limit before the bill had even arrived!


Now actually you are at
c.) haven't even used it yet.


Use the card you've got, chill out, and apply for another one in 6 - 12 months when you actually need it.

"Building a credit rating" is not about how many accounts you have, but how you run them. No one has any data on how you run your credit accounts, because they haven't had time yet to appear.

Banks love me, because I make them money, run up bills pay them off, sometimes pay interest on my cards (when I forget when the offer ends!) have a loan (just paid off!) but ALWAYS pay them their money back, and never miss a payment. So despite a certain credit reference agency saying my "Credit Score" is 595 ish, I have about £35,000 of credit available over 4 cards and a small overdraft. (and £25,000 of that was given in the last 2 years) - don't worry not using that much!

ChrisEvanson

Just a point re 15 month interest free....

Check the details. Very often it will be 15 months interest free on transfers but you have to pay a fee (typically 3% of the amount transferred). Also it may be an interest free on purchases, but only for a limited time...

What I mean is you may be able to transfer a balance or make a purchase and it be interest free for 15 months, but this may be just a limited period (eg for 2 months), with the amount being interest free for the rest of the period.

You can rarely spend for the whole period and it all be interest free, and the window for interest free transfers (subject to the fee) is usually for a limited period.

Joe_Bloggs

As ChrisEvanson has said. The confusion may be about the the nature of any 0% deal. A 0% on credit card transfers is not much use if you have no other credit card. A 0% on purchases could help cash flow. You only need find 2.25% of the balance each month. You are not charged interest but you will be when the 0% deal runs out.

Do not assume that the first months Direct Debit payment will actually work,there may be insufficient time for it to be set up. Set up online banking with the card company and send them a fiver to prove to yourself that you can pay .Keep records, keep all receipts and statements.
J_B.