The struggles in obtaining credit when you are new to the U.K.

CKhalvashi

andyuk01 wrote: »

Only you can see what type of card you have, when someone else searches your credit file they will just see Credit Card / Unsecured Loan / Communications etc etc

The limit, utilisation, payment history, time open can all make a difference but the type of card doesn't

I was just going to mention this.

If you have to go subprime first, then it can be worth doing; I started with a basic Cap1 card, and I've had the 'Elite' card for a year now, so you can work your way up.

CK

litheplay

blon wrote: »

Will consider switching from Santander to Barclays. Did not think it would make such a big difference?! Otherwise I would have just asked Santander for the 1-2-3 in a month as they told me I would be eligible after one full year.

Again I would go to Barclays or HSBC - look for a big branch in an affluent area (I went to the Sloane Sq one in Chelsea), make an appointment in branch and take your pay slips with you. Don't leave the branch without a regular bank account with overdraft facility, ask to speak with a manager if any issues. You're high income and been already here for one year, I doubt they'll turn you down.

ps. do check statutory credit reports prior to that. all three of them.

blon

litheplay wrote: »

Again I would go to Barclays or HSBC - look for a big branch in an affluent area (I went to the Sloane Sq one in Chelsea), make an appointment in branch and take your pay slips with you. Don't leave the branch without a regular bank account with overdraft facility, ask to speak with a manager if any issues. You're high income and been already here for one year, I doubt they'll turn you down.

ps. do check statutory credit reports prior to that. all three of them.

The suggested approach is interesting. When we opened the Santander account, we also walked to a local branch (not in London though), however the consultant in charge of us had apparently no real say in whether we would obtain a better account or not. He just entered all our information in his computer, submitted it into the black box, and back came a list of choices. In our case, we had no choice though, it was the basic account or nothing. What you are suggesting is that you might come across a manager who can override the system's decision. I wonder if this really happens, because everywhere I checked there was apparently no human factor whatsoever involved, just a computer system running a dumb model according to which you get rejected for 99% of the offers if you have not spend at least 2-3 years in the U.K. These models are just made for the average Joe but cannot accomodate "exceptions" like us.

manami_mnm

tripled wrote: »

Plenty of banks offer "basic" accounts with a debit card. Halifax and Co-Op are two examples I can think of. There's nothing stopping you having more than one current account either, so you can open one of them and you no longer have the issue of a 10k limit plus you have a debit card

I would suggest you stop applying for new credit and let your file rest for a few months, it sounds like you have quite a lot of searches on there recently which won't do you any favours.

Even those "Basic Bank Accounts" are not given to every one.

litheplay

blon wrote: »

What you are suggesting is that you might come across a manager who can override the system's decision. I wonder if this really happens, because everywhere I checked there was apparently no human factor whatsoever involved, just a computer system running a dumb model according to which you get rejected for 99% of the offers if you have not spend at least 2-3 years in the U.K. These models are just made for the average Joe but cannot accomodate "exceptions" like us.

That is precisely what happened when I came to the UK. I opened the bank account the next day after my arrival - was still in a hotel although had already found a flat to rent - and obviously I had no credit history and no official proof of UK address so the computer would have said no to the regular bank account.

I had my EU passport and driving licence, and a bank statement - all from overseas. Plus the UK job offer. I was offered directly a regular bank account (fee paying, it wasn't much perhaps £5/month, can't remember, now I'm paying £6.50 for the same acct - it's Barclays Current Account Plus and it includes mobile & gadget insurance and extended warranty for appliances. Not a bad deal, but that account is not offered anymore). Then I was asked if I wanted to try and apply for overdraft at the same time, to which I said yes - and a manager's signature/approval was needed at that stage.

izools

fart wrote: »

Only if they're interest free.

Err, no. When a credit card is uses only for purchases and the statement is cleared in full each month you pay no interest whether or not there is a 0% promotion on.

It seems your adversity to credit is borne out of ignorance rather than wisdom.

Thrugelmir

Cycrow wrote: »

if you pay of the credit cards each month, then you are not paying the bank anything extra.

That's the trap. People start spending next months pay cheque in advance. Financial crisis strikes. Money gets borrowed. Never gets repaid in full. As the customer is trapped on the hamster wheel of credit.

jonesMUFCforever

manami_mnm wrote: »

Part of the bank business is to take risk and mitigate it with higher returns. I really can't understand why there is no secured credit card in the UK market that is available for people who really need it. I know that Capital One used to provide such in the past, but they didn't provide it to every one although it has zero risk for them since it was secured. Still, non-credit products like saving accounts bear no risk for the bank if the customer absconded.

There is or there was anyway Capital One used to offer secured cards.
For a bank to offer this - the risks and costs would outweight the benefits.

Coraline

I found it very easy via NatWest. Within a month moving here, I went to NatWest and opened a current account and savings account. All they requested was my passport and NI number.

Once I obtained employment, they gave me a credit card.

Easy-peasy.

manami_mnm

jonesMUFCforever wrote: »

There is or there was anyway Capital One used to offer secured cards.
For a bank to offer this - the risks and costs would outweight the benefits.

There was and it wasn't available for everyone.