Best credit card for £2000+

Emily1985

Hi,

Unfortunately I'm in a situation where I'm preparing for the worst. I was made redundant three weeks ago and I'm currently in the process of claiming unpaid wages.
Since then I have applied for over 50 jobs specific to my qualifications and I was very fortunate to get a maternity cover job.
The problem is that the start date is not for another 10 weeks.

I have worked out that by using my personal savings to cover all current outgoings (which I have removed all unnecessaries due to my redundancy) there is going to be a significant period of time when I will have no money.
Because I'm v. frugal I drew up a plan of my typical expenditure for the next three months if I had no money coming in and just savings and with just the necessities like mortgage, electricity, council tax and food I worked out roughly £1900 would cover it until I start my new job.

I have never had loans or credit cards before. I applied for and was accepted for a £4000 loan last week with Amigo loans, but it fell apart on my guarantor - he is deaf and they couldn't conduct a conversation with him to finalize the deal. They suggested a typetalk phone but I can't sanction the cost of one, since the average one is over half my personal savings - and even then I'd have to teach him how to use it and type. It was a massive punch in the stomach!

So struggling for ideas I have arrived here. I briefly read here that credit cards are better than loans, so could anybody recommend the one which best suits my requirements?

Thank you for your time.

grumbler

Emily1985 wrote: »

... I applied for and was accepted for a £4000 loan last week with Amigo loans, but it fell apart on my guarantor - he is deaf and they couldn't conduct a conversation with him to finalize the deal. They suggested a typetalk phone but I can't sanction the cost of one, since the average one is over half my personal savings - and even then I'd have to teach him how to use it and type. It was a massive punch in the stomach!

Can you not take part in the conversation with a speakerphone on and write on paper what they (Amigo) are saying/asking?

Can't the guarantor have a written guarantee certified by a notary? This wouldn't be cheap though. ~£100 I guess.

Without a history of CCs/loans I think you'll find it difficult to get accepted for a CC with £2K limit. AFAIK, MBNA are known to offer bigger limits, but usually it is advised for the first CC to apply to the bank you have a current account with or to one of Bad-credit Credit Cards.

bigadaj

Why are you Looking at amigo loans, guarantor loans are a nightmare for all concerned, and your guarantor had a lucky escape.

IF you are currently unemployed then you're not likely to get a credit card. It's difficult to suggest much, if you had a card then you cold use that and pay minimum payments for a few months, however I doubt you'd get a card now that you are unemployed.

Best to do a statement of affairs, if you post this on the debt free board than some nice people may be able to suggest some ways of cutting costs. This is really where savings come in handy but doesn't sound like that is possible.

Apart from borrowing from family or friends then claim unemployment benefit and see what else you might be able to claim, though there might be a delay in payment and as its only for a few weeks then some might not qualify. Obviously also look at any short term work you can get but probably difficult for only a few weeks, though evening work or weekends might be something you could continue with to repay debt.

The_Boss

Yeah...you've got a slim to none chance of getting a decent card with anywhere near the limit you want both without a job and not having had a credit history with no loans or cards on file (although may exist from a mortgage or mobile phone contract if applicable).

manami_mnm

Try to get a lone form your bank or local credit union.

Emily1985

The_Boss wrote: »

Yeah...you've got a slim to none chance of getting a decent card with anywhere near the limit you want both without a job and not having had a credit history with no loans or cards on file (although may exist from a mortgage or mobile phone contract if applicable).

Interesting. I don't know anything about credit or how you get a "history" but I do have a mortgage which I've paid in full, on time for the past 3 years and a contract mobile phone same for 18 months. Would that have any bearing on my credit? I did also have an internet dongle on contract, through the same company as my mobile phone but it broke and they didn't replace it so I cancelled the direct debit.

grumbler

Emily1985 wrote: »

Interesting. I don't know anything about credit or how you get a "history" but I do have a mortgage which I've paid in full, on time for the past 3 years and a contract mobile phone same for 18 months. Would that have any bearing on my credit?

Obviously it will.

I did also have an internet dongle on contract, through the same company as my mobile phone but it broke and they didn't replace it so I cancelled the direct debit.

Well, if you cancelled your DD without cancelling the contract properly, this was one of the worst things you could have done to damage you credit history.

NPHammer

Emily,

I would advise you check your credit report with all 3 agencies Equifax, Experian and Call Credit - you can use noddle and see this one for free. The other 2 will cost you 2 quid each. See what is on your reports. If you have no defaults or recent missed payments you are in with a chance. If you do you will have difficulty.

As has already been stated the cancelling of the direct debit for your dongle may give you some problems.

I would recommend using Nationwides Soft Search facility. They will tell you if you'll be accepted for a credit card, and what your maximum credit limit would be without recording a search on your file.


I am not advising this, but you will stand a much better chance of getting a credit card with the limit you want if you do not disclose your redundancy and put your existing/previous employment details on the application. It is dishonest, and you could be caught out but the risk of this is not great. The morality of doing this is for you to decide. The fact is if you apply as unemployed you have virtually no chance.

I do hope you can find a solution, losing your job and worrying how you'll pay your bills is a tough time for anyone.

matty747

Is there no option to take a payment holiday on your mortgage to preserve savings?

matty747

I would talk to the council too about the tax as if you have financial issues from redundancy they are required to offer you assistance.

[Deleted User]

Here's someone who has been made redundant, managed to get herself a new job and is doing her best to make sure that she can cover her bills until money starts coming in again.

I look at some people in the town where I live and they do !!!! all, don't pay rent, don't pay council tax, get everything handed to them on a plate and many (not all) have never worked a day in their lives.

Self respect is a rare commodity these days it seems and you, Emily, are an excellent example. Can't really help much more than has already been said I'm afraid but I believe that Matty is right and that there is legislation to help those who have been made redundant. Why not ring the citizens advice bureau?