Looking for a rewards CC, just under the income threshold?

derelyth

Hi all,

I've been in a job for nearly 4 months now which pays £18k a year. This is my first "real" job since leaving Uni last year, however since Oct 2009 until the start of March I was self employed where I attempted to get my own IT Business off the ground. It didn't work out and I was getting itchy feet so when my friend mentioned he was leaving his Graduate IT position I bit his hand off and got the job 4 days later (talk about a lucky break).

My CC bill has since inflated from max £150/m to £250-£600 a month due to the commute I do on the train (Portsmouth to Godalming) every day, combined with parking and fuel.

As I pay off in full by DD every month since I was given the card (Opened a student account with LTSB whom I've been with since 2006 and the clerk shocked me by pretty much just saying "you've got a card...with a £750 limit. I wasn't expecting one at all!) I am thinking it may be beneficial to plumb for a rewards-type card - either cashback or vouchers.

I hardly ever shop at M&S, Tesco, Sainsburys etc so a Supermarket one isn't up to much; nor do I fly anywhere so an Airmiles doesn't seem much use either.

My financial "summary"


My current situation:

• 22 years old
  
• Full Time - £18k, 4 months employed. Previously SEmp/Student.
  
• DLA payment of ~£165 a month
  
• LTSB Graduate Account (opened as Under 19s ~2006)
  
• Only into free OD once when I hit "£100" instead of "Other Amount" on ATM, paid-in in branch immediately
  
• Student Credit Card - £750 limit, paid off by DD
  
• £35 Phone Contract paid by DD
  
• Most payments put on Credit Card
  
• Stupidly applied for another card in (I think) 2008/9, declined

I was looking at either (No order):

• AA Rewards
  
• Santander 123
  
• CapOne Aspire World
  
• AmEx Platinum Cashback

However, AA, CapOne and AmEx all need (AFAIK) minimum £20k (some say household income - I live with my parents, does that make a difference?). Santander is I think £7,500 but the Cashback is not general.

The Aspire World also has tiered rates, and the AmEx a £25 fee and not as wide an acceptance (SWT, BP and Shell all do though I think - they are my biggest regular purchases totalling ~£260-£350 a month)

My main sticking point is obviously the income - as it is not means-tested I doubt the DLA is included, even though it would give me that extra £2k to meet the income criteria.

Any advice please?

Many thanks,

Karl

jo-bo

I would include DLA as income, but put under other income on the application.

OliverJames85

Hey,

AMEX platinum cashback is good, but its not worth applying for without a sound financial history, AMEX are very picky, and require quite a high credit score, i would wait a few years before you apply for this one!
Have you looked at the virgin DUO cards for air miles ? im not sure if these would be any use, but worth a try.

Thanks,

Oli

AdamJK_2

Have you considered Halifax?
It's not exactly the greatest but if you can open up the Reward current account and also get the Clarity Reward credit card, then you'd be earning £10pm/£120py.

You need to pay in over £1,000pm to the Reward current account to get £5 (SO from Lloyds into Reward account, SO from Reward account back to Lloyds the day after), then if you use the credit card for over £300pm you get the £5 reward on there too.

Should be relatively easy to get sorted.

Maestro.

If its cashback on purchases, the subprime lender aqua has just released a card that gives you 3% back on purchases, capped at £100 per year. Obviously the APR is ridiculously high but if you pay in full that should not matter. As they're a sub prime lender you shouldn't (in theory ) have any problem getting their card.

Obviously if its a status symbol you're looking for; then forget it, but I think it has the potential to serve its purpose very well.

derelyth

Hi all, thanks for the responses Sorry for my lateness, I don't get much time to go online during the week!

OliverJames85 wrote: »

Hey,

AMEX platinum cashback is good, but its not worth applying for without a sound financial history, AMEX are very picky, and require quite a high credit score, i would wait a few years before you apply for this one!
Have you looked at the virgin DUO cards for air miles ? im not sure if these would be any use, but worth a try.

Thanks,

Oli

Hey Oli,

I know AMEX would be the riskiest application even if they do seem to be the most enticing! I also understand I'd have to spend £2k a year on it just to cover the annual fee. I've not bought my file from a CRA but aside from checking for any discrepancies I don't know how much good it would be, having read that the "scores" are useless as there is no real standard score which is conformed to.

I did think about the VA Duo cards, but I rarely fly anywhere (having only ever flown with VA once, in 2009) nor do I spend crazily to rack up the points which seem to have a lower redemption value compared to the collection rate! I'm not sure if I'd fall into any difficulties similar to an AMEX application directly as one card is issued by them?

Cheers

AdamJK wrote: »

Have you considered Halifax?
It's not exactly the greatest but if you can open up the Reward current account and also get the Clarity Reward credit card, then you'd be earning £10pm/£120py.

You need to pay in over £1,000pm to the Reward current account to get £5 (SO from Lloyds into Reward account, SO from Reward account back to Lloyds the day after), then if you use the credit card for over £300pm you get the £5 reward on there too.

Should be relatively easy to get sorted.

Hi Adam,

I hadn't considered the Halifax card - I am also not overly keen on changing bank accounts as I have been with LTSB for a long time now and have been very satisfied with the service they have provided me when I have required it (Replacement card post-fraud arriving in 48hrs, UK call centres at 11:30PM at night when warning of a large debit payment etc).

The transferring of that amount of cash back and forth also seems like a bit of a risk (I know it's an SO but nothing is free of the occasional error! The risk of losing a bag of sand, even if temporarily, to me is not worth a fiver a month!)

Thanks for your input

Maestro. wrote: »

If its cashback on purchases, the subprime lender aqua has just released a card that gives you 3% back on purchases, capped at £100 per year. Obviously the APR is ridiculously high but if you pay in full that should not matter. As they're a sub prime lender you shouldn't (in theory ) have any problem getting their card.

Obviously if its a status symbol you're looking for; then forget it, but I think it has the potential to serve its purpose very well.

Hi Maestro,

I didn't actually know of Aqua's new launches. It does look quite a good contender as to match to £100 CB on AMEX and Cap1 I'd have to spend £10k-£20k (excluding bonus %, including fees) a year. However, I know as they are sub-prime I could end up with a crappy limit (I wouldn't want to go any lower than £750, as I have come within £50 of this a few times now where statement and payment dates overlap etc) which could eradicate any benefit to the card and its reward.

Cheers


I know, I'm a difficult !!!!!! to be honest...

YorkshireBoy

derelyth wrote: »

(some say household income - I live with my parents, does that make a difference?)

Household income includes that of a partner, spouse, etc...not your parents, offspring, siblings, lodgers, etc.

Not all lenders define it as such (but many do), but that's what they're inferring.

Trentenders

derelyth wrote: »

Hi Maestro,

I didn't actually know of Aqua's new launches. It does look quite a good contender as to match to £100 CB on AMEX and Cap1 I'd have to spend £10k-£20k (excluding bonus %, including fees) a year. However, I know as they are sub-prime I could end up with a crappy limit (I wouldn't want to go any lower than £750, as I have come within £50 of this a few times now where statement and payment dates overlap etc) which could eradicate any benefit to the card and its reward.

Cheers


I know, I'm a difficult !!!!!! to be honest...

Why not use the Aqua card up to its limit each month and then move over to your existing card after that?

chanz4

Why not go for the amazon card?

NickX

derelyth wrote: »

I am also not overly keen on changing bank accounts as I have been with LTSB for a long time now

The transferring of that amount of cash back and forth also seems like a bit of a risk (I know it's an SO but nothing is free of the occasional error! The risk of losing a bag of sand, even if temporarily, to me is not worth a fiver a month!)

You really are worrying unnecessarily here. I have 7 current accounts now. Each one was opened with a cash incentive (from £50 up to £200 for the recent Co-Op Bank account), and I can move funds between them in seconds using Faster Payments. Provided you ensure you type in the correct Sort Code and Account Number when you first set up the payment details the funds will not go astray.

I do multiple fund transfers every month by Faster Payments, and the extra £10 a month from Halifax at least pays for a round of drinks.

There are people on the stoozing site who are using Faster Payments to move amounts in the order of £50k to £100k every night manipulating bank "cut off times" to effectively earn interest on the same funds from 2 bank accounts. Personally I have not gone this far but my point is that once you are used to moving funds by Faster Payments it really isn't a problem, and £10 a month from Halifax for a few seconds work is a great deal.

Good Luck all the same.

derelyth

Checked both my Experian and Equifax reports, nothing dodgy on either.

Just filled in the pplication for CapOne (decided Amex wasn't worth it with the fee, lack of acceptance and cashback eligibility that I've read about on here).

I filled in the first page, clicked Submit/Apply and it started to load a page with what looked like a "Step 1, Step 2, Step 3" progress window and then...Chrome crashed :mad:

I'm guessing my only option is to call them and find out where I got up to?

Cheers