First Direct Account - Declined

zerog

Makaer wrote: »

Is there a certain cut off date generally that I should pay after to allow the payment to appear on my statement? Is there a reason that my payments are not registered if I pay them off straight away?
@a51 and @chopperST I have the NPBS and HSBC Reg Saver at the moment, but was looking at the FD one as the next reg saver.
@seriousDFW, I am lucky enough to work in IT in a top 3 investment bank.

A credit card means you are buying things on credit. Every month the bank will send you a statement, and it will tell you that you need to pay X in the next 20 days.

So for example, I open a credit card on 18 July and spend £500 between then and 18 August, I receive a statement on 23 August which says I need to pay £500 by 12 September. My spending from 18 August to 18 September would only need to be paid by 12 October.

Whatever the balance is on some other random date, say the 1st of each month, gets reported to the CRA. So on 1 Aug, maybe my balance is £200. On 1 Sep, it may be £700, as I haven't paid off the first month yet. On 1 Oct, it could still be £700, as I paid off the July-August statement, but I have spent some more since then.

If I pay the full amount on each due date (the 12th in this scenario), no interest gets charged.

Makaer

zerog wrote: »

A credit card means you are buying things on credit. Every month the bank will send you a statement, and it will tell you that you need to pay X in the next 20 days.

So for example, I open a credit card on 18 July and spend £500 between then and 18 August, I receive a statement on 23 August which says I need to pay £500 by 12 September. My spending from 18 August to 18 September would only need to be paid by 12 October.

Whatever the balance is on some other random date, say the 1st of each month, gets reported to the CRA. So on 1 Aug, maybe my balance is £200. On 1 Sep, it may be £700, as I haven't paid off the first month yet. On 1 Oct, it could still be £700, as I paid off the July-August statement, but I have spent some more since then.

If I pay the full amount on each due date (the 12th in this scenario), no interest gets charged.

I understand the credit concept, I just wondered if there was a set date that I should wait for the credit to appear for all CRAs? Is the date specified on a statutory credit report?

ChopperST

Makaer wrote: »

I understand the credit concept, I just wondered if there was a set date that I should wait for the credit to appear for all CRAs? Is the date specified on a statutory credit report?

No set date, just switch your repayments to pay off the statement balance each month. Remember a little bit of debt paid off, in time and in full is what potential lenders want to see so make sure that is how you use your credit products into the future...

ChopperST

a51_ufo wrote: »

HSBC offers a 6% regular saver for customers. I opened mine through their online banking was set up in a couple of days. I applied for First Direct account and got accepted - even though I have 4 missed payments on my credit report ...

Missed payments are not defaults. The O/P defaulted on a credit card, meaning he probaby missed 6 months worth of payments and the debt passed to a collection agency. This is a red flag to lenders.

Welshy213

As stated above, get in touch with your CC lender and tell them you want to set up a DD to pay off the card in full each month.
This way you attach no interest but it shows as you borrowing and paying off the credit each month.

Blue_Parrot

Makaer wrote: »

I earn a good salary (£75000) ....................

I am 24 and living with parents,

Sorry mate, but I just don't believe you. £75,000 p.a. at age 24 and still living at home?

MoneySaverLog

They actually have him cheap for someone in IT at a top investment bank, depends a lot on his role and if he's contracting.

Blue_Parrot

MoneySaverLog wrote: »

They actually have him cheap for someone in IT at a top investment bank, depends a lot on his role and if he's contracting.

Why would someone (allegedly) earning £75,000 p.a. with no mortgage or debts even need a credit card?

Why would someone be so (allegedly) savvy that they are (allegedly) paid that much, not know how credit cards work?

Yeah, right. :wave:

Makaer

Blue_Parrot wrote: »

Why would someone (allegedly) earning £75,000 p.a. with no mortgage or debts even need a credit card?

Why would someone be so (allegedly) savvy that they are (allegedly) paid that much, not know how credit cards work?

Yeah, right. :wave:

I need a credit card to help build my credit back up due to past indiscretions, hence the default 4.5 years ago. I have an understanding of how credit cards work, but not the associated CRA details behind it. As such I asked a question that would help me understand, when to pay off debt so as to ensure that the CRA picks up the consistent payments. I have set up the CC to pay off the CC in full every month, but I am a bit pedantic about paying it off due to my past issues and my trying to rebuild my credit rating. I will in future let the DD pay off the debt at the end of month.

I am currently living at home, as I pay minimal rent, save 2k+ every month to put toward a house deposit whilst I attempt to rebuild my terrible credit rating.
And as MoneySaverLog mentioned, I am actually on a fairly low salary compared to the majority of my team, due to me being relatively new to the industry in comparitive terms.

m0ns00n

Not that I'm suggesting you're lying, but £75k at 24 does sound quite high, even for an IB in London.

When I joined the grad programme of one of the top IBs, the starting rate for IT was approx £36k. I imagine this has probably increased a bit in the intervening 6 years, but not by a huge amount.

Obviously there are exceptions to this rule, but £75k is definitely not low, especially at your age.

Also, given your take home pay is about £4.1k, I'd recommend saving more than £2k a month. No way you need £2k per month on disposable income!