What do banks consider a wage

mummy_jonno

Wondering if someone could help me a little.

I'm a homemaker (husband's a soldier works 40+ a week) I have my own bank account and I receive CSA, son's DLA, careers allowance and CTC every month (all goes into my account only)

The bank said if I wanted a credit card from them to boost my credit rating (have very minimal credit and the longest credit is a different bank account I don't use which is 2 years old) I'd need a minimum of £500 pm paid into the account (currently it totals about £1,000)

They said that I couldn't have one or an overdraft because they don't consider what goes into my bank account earnings.

DLA and CA will be going in there for 5 years minimum however they only consider DLA to be pay even though it's not mine and not taxable where as CA is?

Does anyone happen to know what banks consider a wage? other than the obvious job.

This is with HSBC. Thanks in advance

kilasuit

benefits dont get counted towards "earnings" with any bank as they arent earnings

it is as simple as that.

A wage is only ever a wage from a job that you are employed or a worker for like an agency

Self-employed earnings on other hand would require you to have a business account (i believe)

hth

mummy_jonno

It just baffled me that they consider DLA accountable earnings (even though by law it's my son's money not mine) yet CA is taxed and is not.

It's impossible for me to work given my current situation so I guess I'll just have to bite the bullet and stick with a rubbish CR

Thank you ever so much

kilasuit

mummy_jonno wrote: »

It just baffled me that they consider DLA accountable earnings (even though by law it's my son's money not mine) yet CA is taxed and is not.

It's impossible for me to work given my current situation so I guess I'll just have to bite the bullet and stick with a rubbish CR

Thank you ever so much

That is not true at all.

You can apply for cards like the Aqua card or Vanquis but you do need to be very careful with the charges and interest rate.
There are also other ways to build a credit rating some include having gas and electric with British Gas as they report account conduct or mobile phone contracts

All i'm saying is that there is lots of ways to build a credit report without a credit card from a mainstream bank like HSBC.

Have a read here -> http://www.moneysavingexpert.com/loans/credit-rating-credit-score
and see how that helps you.

olly300

kilasuit wrote: »

Self-employed earnings on other hand would require you to have a business account (i believe)

They don't.

If you are self-employed, only have one regular client and the amount paid isn't that much you can get away with using your personal current account - that is until the bank starts asking you about your affairs.

bobobins

Hello there. I'm a homemaker too and opened a Natwest select account in nov 2011. Six months later i ugraded to select silver, got a platinum cc (£1150)limit, £500 overdraft and chequebook.

The only things i've had going into the account are child tax credit, child benefit and carers allowance. Seems like different banks have different ideas on what constitutes a "wage".

InsideInsurance

Most ask about "income" rather than "wage" or "salary" otherwise a lot of very rich people wouldnt get anything as their money comes not as salary but as dividends, investment interest etc

As to what is counted as income, that tends to vary between companies, Natwest when I spoke to them earlier in the year said it was any money coming in that is guaranteed

opinions4u

Could you be second cardholder on a credit card obtained by your husband?

p00hsticks

opinions4u wrote: »

Could you be second cardholder on a credit card obtained by your husband?

That wouldn't help build the OPs credit rating though, whcih I get the impression is the main reason for them looking for a card.

mummy_jonno

bobobins wrote: »

Hello there. I'm a homemaker too and opened a Natwest select account in nov 2011. Six months later i ugraded to select silver, got a platinum cc (£1150)limit, £500 overdraft and chequebook.

The only things i've had going into the account are child tax credit, child benefit and carers allowance. Seems like different banks have different ideas on what constitutes a "wage".[/QUOTE/]

I have to agree with you there!

Thanks for sharing I appreciate it, I'll look into opening an account with them. As a homemaker obviously you don't NEED credit however it's always handy to have around for personal reasons as well as credit building.

THANKS!

mummy_jonno

My husband personally has bad credit (soldier at a young age being handed tons of credit not a good idea) although he's learnt his lesson this is more about me per say. It's handy to have to build my CR so that in the future when say I want to drive and get a run around for just me I can.

Such a tough deal being the home maker it's like you are a ghost to creditors.