Re-activating inactive Credit Card

IDer89

Hi all,

So I got in to some financial mess recently and am in the process of sorting things out.

I am 24 and had a student account with Natwest with an overdraft of £1500. During my time at university like most of us do, I spent it.

After I graduated I had the fortunate opportunity to work in the US for two years, but unfortunately my pay only covered living expenses and I was unable to pay back my debt leaving myself overdrawn. Upon returning home I find Natwest defaulted my account at the end of July transferring the debt to Apex.

I've managed to pay off £750 in one go to Apex (who were really friendly) with the rest as a monthly instalment, however I have some stuff to sort out and plan to pay the rest off quickly within the next month.

Given I now have a default on my Credit File I am aware how royally this messes me up for the next 6 years in terms of my borrowing powers. I don't plan/want a mortgage until I'm 30 as my career means I will probably move about a few more times over the next few years.

I am happy to rent even though I know I may have a few issues there although from what I have read landlords/letting agents can't see defaults? Anyway if needs be I have guarantors, I may also get a job in Europe or back in the US so it won't matter.

The only thing that will be a problem is obtaining a decent Credit Card. Now I've learnt my lessons from how I used my overdraft, I don't want a big chunk of credit but know there may be emergencies sometimes.

So, I have a few questions:

1) I have a Credit Card on my report from Nationwide last used and paid off in 2009 with a limit of £1000. I don't have the physical card and haven't heard from them in years but given it's there can I go about re-activating it without them refusing due to the default?

2) As my debt to Natwest was sold and my current account closed, I'm not directly paying them but the very rude guy on the phone said I won't ever be able to bank with them again in my entire life. Is this true?

3) I'm using HSBC as my current account and as I read banks can and often operate with their own lending criteria. How do I go about to them proving I've learnt my lesson in managing my debt to obtain credit for lets say a car loan?

I'm aware I've messed up my file for the next six years all due to being naive and don't plan on getting in to debt again like this but as stated I may need some sort of borrowing for emergencies or bigger purchases. I'd really like to stick to the "good" guys as much as my bad report lets me. Thanks all.

grumbler

1) Call NW and ask them. How have you abandoned the card without closing it? What address do they have? What if they sent a replacement card to the last address they knew? ...

2) Pretty much so. What did you expect? Forgiveness?

3) The only way is to rebuild your credit history, and this will take years. Meanwhile, forget about "bigger purchases" on credit and save for them instead. Start with some basic sim-only mobile contract, some store card and, possibly, some of Credit Cards for Bad Credit if you can't revive your Nationwide one.

eskbanker

IDer89 wrote: »

2) I didn't expect forgiveness but a bit of leniency. I hadn't received any communication from them telling me my account was in arrears even though I told them I was moving abroad. They have my phone number and email address, for which they often sent me emails informing me of changes to their policies or to try and sell me their products. Nothing to tell me they were closing the account. I was even prepared to pay the full amount owed there and then as well, rather than through a third party. In all fairness the "debt collectors" were a lot nicer and more understanding than what was my own bank.

Not 100% sure on exactly what NatWest's policy is but there's a big difference between notifying general info via email and sending sensitive account-specific messages via this means, so most banks will continue to rely on paper or secure online messaging only. To be fair, you knew you were overdrawn and not making repayments and (presumably) also knew you weren't receiving statements, etc, at your US address - where were they sending formal correspondence to during those two years? You need to look at it from their perspective - someone borrows a bunch of their money and then effectively vanishes, so it's hardly surprising they pulled the plug and that they won't be particularly sympathetic now, so move on and forget them!

colsten

IDer89 wrote: »

2) I didn't expect forgiveness but a bit of leniency.

what for?How would you treat someone who borrowed money from you and reneged on paying it back?

IDer89 wrote: »

I was even prepared to pay the full amount owed there and then as well

so why didn't you pay it all back there and then? And why haven't you yet paid it all back since? What makes you think anyone believes you would have paid your debts anytime soon, if ever, if you hadn't been chased by a DRA?

It would be easier if you admitted you thought you'd got away with not settling your debts, and now you are a bit miffed they caught up with you. I am glad they did, and I am glad you got a marker on your credit history.

eskbanker

IDer89 wrote: »

It just sucks that a mistake and naivety when I was young could possibly not allow me to use their services for the rest of my life.....

Not convinced it's legitimate to play the youth card like that - I don't think it's unreasonable to expect a 24 year old to take responsibility for their actions. Bottom line is as above though, it's not a battle worth fighting even if there was any prospect of winning it - there are plenty of other banks out there, take your medicine and move on!

colsten

IDer89 wrote: »

That last statement is a bit mean.....jeez. I thought this was a forum where people helped? Not sit there in glee when someone gets in trouble.

by your own admission, you tried to get away with not paying back money that you owed. Do you really think it would help if people on this forum encouraged theft?

IDer89 wrote: »

To be honest I had thought I had gotten away with it, at least given that it was a student/graduate account that Natwest would have been lenient.

Why do you think students/graduates shouldn't be paying back their debts?

raimundas

My question is if I have Lloyds credit card deactivated,what is the best way reactivate,also I would like to increase my credit limit

grumbler

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Lloyds_Bank

raimundas wrote: »

My question is if I have Lloyds credit card deactivated,what is the best way reactivate,also I would like to increase my credit limit

Hi raimundas,

The best thing to do is to give our Credit Cards team a call. One of my colleagues there can then take a look at your credit card account and advise from there. They can also help with limit increases and are available 24 hours a day on both 01702 278 272 and 0845 606 2172.

Thanks,

Craig