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Credit card recommendation for first-timer?

I have a 27 yr old relative who is looking to obtain their first credit card, mainly for the feature of Section 75 purchase protection, but also for occasional cheap overseas spending when on holiday.

He applied online for a Halifax Clarity Card last in September but was rejected instantly on the grounds of being unemployed, despite declaring on the application the income he obtains from DLA and ESA (he has a long-term disability).

I recommended he check his credit report with one of the three rating agencies, and he has an Equifax score of 471 with no negative aspects on his file.

He's asked me what his next move should be, but I'm hesitant to advise him to apply for another card without first seeking advice myself from you knowledgable folk, as the last thing I want to do is cause another rejection for him!

Should he apply for a 'credit rebuilder' card to try to create a credit history for himself, and then apply for a card like the Halifax Clarity card at some point the future? Or does the fact that he is unemployed effectively kibosh his chances of being accepted for any credit card?

Comments

  • Hominu
    Hominu Posts: 1,671 Forumite
    Which bank has been with the longest and has all the income paid into, bills paid out of? Ask this bank for their own credit card and you'll normally be accepted.

    When they have a proven history of using the card and paying the balance, then apply for a different card.

    Going straight from nothing to a Halifax Clarity will, unless all your banking is with Halifax, normally always lead to a rejection.
  • ToTo_Man
    ToTo_Man Posts: 128 Forumite
    Part of the Furniture 100 Posts Name Dropper
    He has banked with the Bank Of Scotland all of his life, and if I'm not mistaken he has had his existing Current Account with them since he turned 16 so about 10 years. Bank of Scotland and Halifax are part of the same company, aren't they?
  • Think Bank of Scotland is now part of Lloyds.

    JCG

    xx
    :smileyheaMarried on 20/07/2012! :smileyhea
    :DBought my new car 11/08/12:D
    :cool: Save £12k In 2013 Num 009! £5502/£5000 :cool:
    Save £12k in 2014 Num 22! £2131/£3000
    Emergency Fund £0
  • reclusive46
    reclusive46 Posts: 2,698 Forumite
    He could try the Aqua advance credit card. That has no forex fees and it is designed for people new to credit or those who have bad credit.
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