Underwriting Question

Jam555s

hey team i have a few questions
i am a guy trying to build my credit rating

1. i already have a capital one sub prime card
if i go to apply for another one, say vanquis and the look at my file and see i already have a similer card, say capital one card, would that go agaisnt me?

2. i know im being generic but could anyone give me a League table of products based on how easy it is to obtain to help build my credit score up
say a basic bank acc is the easiest then sub prime credit card, what next?
are store cards quite lenient, i hear mobile contracts can be quiet lenient, as they offer a deposit service, please can some make up a top 10

3, if i have a sub-prime credit card, what is the best way to run it, so that they put up the credit limit after a while , is it to not use it at all, is it to be at the limit and pay the min payment, or is it to spend say £20 per month and pay it in full each month,

4, is it true that if going for a basic bank acc, they do a credit check, but only really to make sure u live at that address, more an identity check if u will , ie a low score will get one

thanks again team

YorkshireBoy

Jam555s wrote: »

1. i already have a capital one sub prime card
if i go to apply for another one, say vanquis and the look at my file and see i already have a similer card, say capital one card, would that go agaisnt me?

Yes, but only in so far as they'll see your existing available/used credit, and will take this into account when setting your credit limit (if they accept you).

2. i know im being generic but could anyone give me a League table of products based on how easy it is to obtain to help build my credit score up say a basic bank acc is the easiest then sub prime credit card, what next? are store cards quite lenient, i hear mobile contracts can be quiet lenient, as they offer a deposit service, please can some make up a top 10

I can't help you with a list, but I would imagine credit cards are the best credit builders.

3, if i have a sub-prime credit card, what is the best way to run it, so that they put up the credit limit after a while , is it to not use it at all, is it to be at the limit and pay the min payment, or is it to spend say £20 per month and pay it in full each month,

None of the above! Spend up to 80-90% of your limit, and repay in full.

4, is it true that if going for a basic bank acc, they do a credit check, but only really to make sure u live at that address, more an identity check if u will , ie a low score will get one

Can't help with this one, sorry.

Alfie_E

Jam555s wrote: »

4, is it true that if going for a basic bank acc, they do a credit check, but only really to make sure u live at that address, more an identity check if u will , ie a low score will get one

If they do anything, it should be an identity check, not a credit check. The will only get to see basic information about you – nothing related to any accounts you already hold – so there’s no chance of credit scoring you. No other company will be able to see that the bank asked for that identity check.

For many basic accounts, they won’t even ask a credit reference agency. They’ll take your paper ID – utility bills; statement for the credit card you do have; passport or driving license, if you have them; etc. – as all that’s required. Remember, they’re looking to protect themselves with regards to anti-money laundering regulations, not because they’re worried you’ll walk off with loads of their money.

inmypocketnottheirs

Hi Jam555s. I have been in a very similar situation rebuilding my credit after a pretty horrendous period a few years back. If only I had discovered this site then, and the outcome would have been completely different.

I ended up with a couple of 'hefty' ccj's totalling around £23k, plus a couple of defaults for credit agreements and mobile phone contracts.

Defaults and ccj's are the biggest problem when looking for any form of credit. I settled both my ccj's in full about 12 months after they were entered, but I refused to do anything about the default notices.

However, gradually I have regained my credit history. I was one of the early ones to reclaim my bank charges, back in January 2006, and really cheesed of my bank (Co-op) so they closed my account. This left me without a fully functional account, i.e. small (£100) overdraft and Visa debit card gone.

Prior to this happening I applied first for a Capital One card, and got a £200 limit. On average I cleared the balance in full about 80% of the time, then the rest of the time I left around 20% on the card and then cleared it in full the following month. My £200 limit is now £1200. This has taken around 3 years to achieve.

Then I applied for a Barclaycard Initial, and got a £260 limit. Same conduct, got the limit increased to £400. Then during their recent round of reviewing credit limits my limit was reduced to £350.

My third card is the dreaded Vanquis. I applied, and immediately got an £800 limit. Same conduct as Capital One and Barclaycard, and my limit was first raised to £1250 and then a couple of months back £1750.

The rates on all these cards are astronomical, around 35%. I have had to pay some interest granted by using the above method, but I think it has been by and large worth it to get a meaningful limit from Vanquis and half decent from Capital One. Barclaycards behaviour is questionable, and their logic seems to defy conventional wisdom!

On all of the above accounts because in the early days the limits were woefully inadequate, I would often 'load' the card up, putting the balance into a say £500 credit balance, and then on the day the credit balance shows on line (on line not available with Vanquis) I would then book a flight to get the balance back down again. I travel at least 4-6 times a month, and need a credit card for online flight booking, car hire and hotels etc.

Then, following the Co-op getting shirty over my charges refund, I did have considerable difficulty getting a decent bank account with a visa debit card. Firstly I opened a Norwich and Peterborough Building Society (https://www.npbs.co.uk) current account. All I got was a cheque book and Link cash card. I then used the account putting around £2500 a month through it, did not overdraw or incur any charges. I applied for their full function account with Visa debit/guarantee card and £500 overdraft and was rejected.

I then applied for a Citibank account (https://www.citibank.co.uk) following posts on this site that some others with credit history problems had got accounts with debit cards etc. I sucessfully opened a current account with cheque book, visa debit/£100 cheque guarantee card. I have only had the account about three months, put the same £2.5k a month through and just this month asked for the interest free £500 overdraft. And I got it! Furthermore, although many here slate citibank, I also have business interests in the US and citibank enables me to have a US$ cheque book account linked to my UK current account, meaning I now get fee free transfers both ways.

It has taken me a long time to rebuild my credit and for me the above process has worked.

It is obvious really, but the only way to get decent credit is to meet your obligations, pay on time and conduct the account properly. I think the 80/20 method shows the credit card companies that you can conduct your account properly, but still gives them the picture you pay interest!

Good luck!

John_in_the_city

About your question on Basic Bank Accounts. All the Banks have different criteria regarding how they "Credit Check" the applicant. Firstly, they all do identity check and will fall back on the usual photo id / utility bill approach if they cant validate you online via electoral roll and other products you may have with them.

Anyway, as regards the Basic Bank Account I was recently reading some Treasury Select Committee statements that went into the production of the 2006 consumer credit act. In it, some of the heads of the Banks made statements about their approach to Basic bank Accounts.
>>Barclays stated that they considered it a separate product with separate criteria, with no possibility of "Credit" and therefore did not conduct credit checks.
>> Llloyds and HSBC said althought the product was indeed different, because of they way they processed applications, they went through credit checks and on occasion this has led to declinations.

So, if in doubt maybe try Barclays!