Barclaycard initial

stephane_2

GoonerGregg wrote: »

Capital One, I agree, BUT, you've just been turned down by Barclaycard, so there is a high chance Capital One will also turn you down.

You mentioned you don't care whether it's a £50 limit, do you care about the APR? I mean why should you!? At the end of the day, you just want to improve your credit limit.

My advice would be to apply for a Vanquis card. Yes it's higher APR than Capital One, but you've got a ten fold better chance of being accepted, trust me.
If you don't get accepted by Vanquis, as I say, you'll be directed to a site where you'll definatley get accepted by 'Rise'. Same company, same type of thing, just an even higher APR rate, about 45% I think?

It's not great, but just remember too not go anywhere near your limit, pay monthly as ever, and you'll find after every 3 months, with no other credit applications, and your mobile bill continuing too be paid, your credit score will improve.

Another tip, never leave your current account at £0.00, always leave it at £0.01 CR. I for one have 2 savings accounts, and try not have any money in my current account that isn't neccesary, so leave a CR balance of 1p. Never close down your bank account. It damages your credit rating like mad! If your not happy with your bank account for what ever reason, just open another.

Leaving a current account with a £0 balance has no impact whatsoever to your overall credit score....and why would closing a current account damages your credit rating "like mad".... Can you substantiate your theory?

stephane_2

pixypup wrote: »

Thanks goonergregg for the advice, ivebeen accepted by rise with a 200 credit limit! At least I think I have, said something about card will be with me in 10-14 days after more company checks or something! Also, I looked into thecapital lne secured card and they said kd be accepted ifi pay down the 200 quid, should I still go for this also?

Have you tried the Nationwide credit card soft search? If you've never had a credit card does not mean that you cannot get one from a main lender with a decent limit & apr. With Nationwide they'll let you know if you are likely to be accepted for one of their cards and it will only leave a soft search on your file, which means that no one part from you will see it on your report.

AdamMc90

I went to my own bank when I first wanted to open a CC and they was happy to help with reasonable rates (and a £1000 limit which they upped to £1200 iirc)

GoonerGregg

stephane wrote: »

Leaving a current account with a £0 balance has no impact whatsoever to your overall credit score....and why would closing a current account damages your credit rating "like mad".... Can you substantiate your theory?

Having a bank account on your credit file in credit will enhance any application for credit anyone makes.
Having a bank account for a good number of years is seen by creditors as a good base for which to decide on as part of a credit application, that's why any application online or by form will ask if you own a bank account. If you were too close your main bank account that you've owned and ran for say '10 years', closing that account you've mantained and had for a sustained number of years, using it and it showing on your credit file in 'Green' month by month will only dent your chances.

Lenders that see a closed account (Settled), and a new one being opened will see this in there eyes as a stumbling block because they won't notice any circumstances, or even consider the circumstances as too why you may have closed it in the first place. Unless you place a notice of correction on your credit file, in this instance, of course they will consider the factors.

Too answer your question, therefore, as apposed to a creditor seeing a sustained and mantained bank account on your credit file, and seeing it all in 'Green' meaning in credit, then this is a major step towards then going on to other factors of which they can decide whether credit is too be granted or not. For instance, whether the customer is on the electoral role, or whether you have mantained other credit to a satisfactory standard etc too date.

A bank account that is showing as only owned in a small amount of time (Couple of months for instance), or only just opened, this is not enough for a company to go on solidly enough when assesing you for credit too be granted.

stephane_2

NO....a bank account in credit will not show on your credit report....it will only show when using your overdraft....bank account balance are not reported on any of the credit reference agencies, and even if overdraft is used it will show green anyway...and using an overdraft from time to time will have no impact whatsoever. Of course if only 1 bank account for a long time then it is advisable to leave it open even if not in use. I have 5 current accounts with only one of them used as my main account....it has never stopped me getting any kind of credit.

GoonerGregg

stephane wrote: »

NO....a bank account in credit will not show on your credit report....it will only show when using your overdraft....bank account balance are not reported on any of the credit reference agencies, and even if overdraft is used it will show green anyway...and using an overdraft from time to time will have no impact whatsoever. Of course if only 1 bank account for a long time then it is advisable to leave it open even if not in use. I have 5 current accounts with only one of them used as my main account....it has never stopped me getting any kind of credit.

NO....Are you telling me that NO, your bank account does not have a balance updated at times on your credit report?
You can have a £0 balance on a bank account, yes I agree, and this won't effect your credit file, it will show green, yes....
A green marker on your credit file in regards to a banking account is a sign of month to month usage, , and thus gaining a better score.
This is the whole reason why I am merely giving the chap who wanted too start his credit with some advice in the first place.
Who is saying you won't get credit if you close an account? You can still get granted credit if you have a CCJ.
I've not said you will, nor I have I said or meant to say that overall, your credit file will implode as a result of closing an account? I only said it won't help a single credit application, that's all.

To the chap I was initially helping, it was a tip not to close an account, but to open another, and you have sounded on that also, so am I right? It does not help a single credit application, if for instance at the time of applying for credit, a new banking account is shown, and one has been closed, because all the hard work your bank account has been doing all the years it's been open, and all those lovely greens mean that any one credit application get's granted on merit of that. After all, on a credit application, if you mark your main bank account as a reference to your who your saying you are, the credit company will check against your main account, and check it's usage, and check the amount of time you've had this account. A relationship that is sustained with a bank, is a standing made in terms of obtaining credit with a company of which is looking too give it.

pixypup

Hi guys, back to my question! As I said I've been accepted for rise with 200 limit, I've also been accepted for a capital one secured on the basis I pay a 200 security deposit, should I take out both as a means of helping to. Build my credit worthiness or not? I think paying the 200 is scandalous though I know I'll get it back and I'm prepared to do it if it helps improve my status with creditors, I can quite comfortably manage the two products or will having two cards have a negative effect on my file, my thinking is showing over time I can manage the two successfully will make me a good credit risk in the future, as I said I'm looking to get on the property ladder over the next 18 months or so, this is my whole reason behind wanting to improve my file, once again appreciate all the help guys, you've been great

GoonerGregg

You'd be better off getting a cashplus pre-paid credit card than giving Capital One £200 security deposit, and then they will have the cheek to charge you interest on there credit limit as well.

It's up to you, I think if you can afford the £200, and in all truth not really use that card over say £50 at the most, I'd go for it. But, on the strength you've already got the Rise card, I'd just stick with that.

You will easily improve your credit score with running just one credit card, your mobile account, and your bank account, sounds a perfect basis of which to show your credit worthiness.

Good luck in all that you do!

pixypup

That's great mate, however, what's the reasoning of not spending over50 pound on the card? So long as I don't exceed my limit and pay in full every month what harm will it do to spend more? I have a weekly commute to Aberdeen from the north east of England and my intention was to buy my train ticket using my card, then when my company pays out my expenses the following week, I'd pay off the card, do you follow, again, it's purely for credit building purposes, thanks you

izools

Stay away from RISE.

Absolutely totally don't take it out and close it at once if they've opened an account for you.

You've seen their charges, right? That they charge you even if you don't use the card? And even more if you use it, irrespective of whether or not you pay it in full?

It's the closest thing to legalised daylight robbery since Provident loans, but of course a RISE card is in fact MORE EXPENSIVE than a Provident loan.

If you take out the Capital One card and clear the balance in full every month, you won't pay a penny interest, and you will get all of your money back after six months.

Whereas if you use a RISE card, after six months you'll be anything from £21, to many hundreds of pounds out of pocket.