Can't get a credit card?(Student) Need Help

AlexB123_2

Hi there. I'm Alex! This is my first post here.

So basically I signed up for a Lloyds TSB student account back in September when I started University and applied for a Student Credit Card with them at the time - and got declined. The woman in the branch said she had no idea why I was declined as I had nothing negative towards me, but the fact I had nothing positive (I'd never paid a phone contract or a loan or anything until then). So I decided not to get one.

After a promotional deal in the post with Tesco I decided to apply for a credit card with them - and got declined. I thought, right well I've paid my student loan/rent/car insurance since I applied with Lloyds in September - but I still got declined! I have no debt whatsoever (only tuition fees which is "good debt") I've never been in financial difficulty and have started a phone contract this year. I've no idea why I was declined?

I've checked my credit history in September and it was "neutral" there was no bad or good things on it, and I checked it again today on a few websites and once again there is nothing bad, only good.

I have around £11,000 in savings but no company takes this into consideration. I have been so good with my money and never gone overdrawn and it is SO frustrating. I want a credit card to build my credit rating.

I have been accepted for a credit card with Capital One but it was a "bad credit rating" one, I want one with Lloyds just to have all my finance in one place and they have a good deal with 0% interest.

Any idea what I could do? I might go into branch and threaten to leave if I don't get one. Does applying for these credit cards harm my credit rating? Do you suggest I pay for things on my Capital One credit card to boost my credit rating?

Cheers
Alex

EDIT: I forgot to mention my income is around £9400 for the past year, it will be £10,000 starting in September but I used the first figure in applying.

grumbler

AlexB123 wrote: »

...
After a promotional deal in the post with Tesco I decided to apply for a credit card with them - and got declined. I thought, right well I've paid my student loan/rent/car insurance since I applied with Lloyds in September - but I still got declined!

Student loan is not reported to CRAs, but I don't understand how can you be both getting it and paying off. Rent and insurance may or may not be reported.

I have no debt whatsoever (only tuition fees which is "good debt") I've never been in financial difficulty and have started a phone contract this year. I've no idea why I was declined?

Because you have no credit history. For students it's a norm to start either with the bank they have a current account with or some Bad-credit Credit Cards . And even these are not guaranteed because of many factors affecting the decision: Credit Ratings

I've checked my credit history in September and it was "neutral" there was no bad or good things on it,

Does this mean that there is no anything?

I want a credit card to build my credit rating.

I have been accepted for a credit card with Capital One but it was a "bad credit rating" one, I want one with Lloyds just to have all my finance in one place

Beggars cannot be choosers. And having everything in one place is a delusion.

and they have a good deal with 0% interest.

Good deals are for customers with well established history. And as you don't have any debts except the student loan, 0% deal is almost worthless for you. A cashback card would be more useful. It's a pity that Aqua pulled their Rewards card.

Any idea what I could do?

Don't rush. It takes time.

I might go into branch and threaten to leave if I don't get one.

Staff in branches are powerless nowadays when computers rule everything. And don't overestimate your value as a customer for Lloyds.

shortcrust

You need use your Captial One card regularly and pay the full balance every month. Don't get close to your limit. With no evidence that you can manage credit well you won't be able to get something like a Tesco credit card or cards with 0% offers.

Applying for lots of credit does indeed look bad to potential lenders. I would wait six months then try again, but in my experience it may be 12 months from getting something like a Captial One card to when you can get a prime credit card. Try to be patient.

Don't go into your branch and threaten to leave. It won't change anything and will probably make you look a bit silly and feel a bit silly. The computer makes the decisions and branch staff can't overrule those decisions.

This may be stating the obvious, but remember that no one has a right to credit. You need to work on building a credit file. Everyone has to do it. This site is full of good advice if you look for it.

matttye

AlexB123 wrote: »

I have around £11,000 in savings but no company takes this into consideration. I have been so good with my money and never gone overdrawn and it is SO frustrating. I want a credit card to build my credit rating.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

"It's all about PROFIT, not RISK"

If you're too good with your money, the banks won't make any money by lending to you. You could in effect be TOO GOOD for them. Go overdrawn a little, it might help

Angry_Bear

Are you on the electoral role? A lot of students don't bother at their student address. If you're applying for credit cards and either a) aren't on the role; or b) (worse) are on the role at a different address to the one you're applying for the card from you'll almost certainly be declined.

Herbalus

I never heard of anyone getting a student credit card when they opened their student account. I was offered my first by my bank (Natwest) towards the end of the first year. You're going to have to accept that most of the cards on this website (like 0% deals, Amex etc) are not going to be accessible for a long time.

I suggest that if you want a Lloyds card you wait until after your exams (or even longer perhaps), and then apply again for their student card. The Capital One, though it may not be what you want, is entirely adequate for a student though if your limit is high enough.

You need to show that you can manage credit, which means using your capital one card sensibly, and then other cards will become available as you build your rating.

My other question is why you want a credit card so badly in your first year of university? The fact that you have savings means I don't think you are living beyond your means and need the credit (unless you don't want to use your savings of course). For transactions that need a credit card, such as hotels etc, the capital one card will do fine.

It's inevitable that students with no credit history are not going to get cards will bells and whistles. My first was a Natwest student cc (£500 limit, no benefits), then a House of Fraser mastercard (high interest rate, a few points on spend), and then (end of second year) I closed the Natwest because I managed to get an Aqua Rewards cc after being denied the Halifax Clarity for my year abroad.