Applying for credit cards online when you have bad credit

fierystormcloud

OK so my friend has been bankrupt for 5 years (summer 2010) and consequently she has poor credit. She wants to apply for a credit card (she already has 2 catalogues and has managed to get them OK obviously, and she pays the monthly payments on time...)

So she looked on here (she isn't a member) at the home page where it says check your chances of getting a credit card, and she had a very good chance (it said) of getting an Aqua Credit card.

So she filled in the online form, and gave her address, her previous address, her home phone number, her income, her employer, everything, and then on the very last page she was asked for her BANK DETAILS.

I told her instantly to X out as it seemed very dodgy that a random online credit card company were asking for bank account details, before even saying yes to the credit card!

She said it MUST be kosher because it's on MSE and Martin is off the telly so it can't be a dodgy card or he wouldn't let it be advertised on here.

So can someone please tell me if this is normal practice to ask for someone's bank account details when applying online for a credit card? (BEFORE they even say yes to one...) I mean, she had not even been accepted and was still filling out the form, and they want her bank details?!

I have heard so many horror tales of people doing this, and the company in question take £50 to £100 out of their account, (or more!) and then they still say no.

Am I paranoid? Or am I right to be suspicious?

Thank you.

Nebulous2

You are being paranoid I'm afraid.

Credit card companies need to identify you before giving you an account and need enough information to do that. Checking that bank details match helps to do that.

I've never had an Aqua card, but it is often seen as one of the best ones for credit building.

The people you have seen asking for bank details and then taking money are loan brokers. they are a very different kettle of fish altogether.

TadleyBaggie

It's absolutely normal for the bank details to be requested during the application phase. It will form part of their internal rating process.

Just make sure the application is being made on the website of the financial institution and it is a secure connection.

fierystormcloud

Thank you. So I am being paranoid then?

And there is definitely no chance of them taking money out then if my friend puts her bank details in?

And Aqua have a reasonable reputation?

Is it all online? Do they take your monthly repayments out of the bank by DD? Is there any way of paying more off if you want to? How would you do that if they don't send statements?

Nebulous2

No chance of them taking money out.

Credit cards vary in how you get your statements. Most give paper statements with an option to turn them off. I always do and go for online only. Some of them may insist you get them online. The website will tell you all the details when you apply.

Credit cards usually leave the payment method up to you. As long as you pay the minimum payment to reach them before the payment date.

They give two options usually for a direct debit:-
1) minimum payment
2) full statement amount

Some give a third option of a fixed payment in between.

Aqua is likely to be high interest rates, so paying the full amount would make sense.

boo_star

fierystormcloud wrote: »

Thank you. So I am being paranoid then?

And there is definitely no chance of them taking money out then if my friend puts her bank details in?

And Aqua have a reasonable reputation?

Is it all online? Do they take your monthly repayments out of the bank by DD? Is there any way of paying more off if you want to? How would you do that if they don't send statements?

They're not a scam company at all, it's operated by NewDay, who also run a number of store cards.

Their reputation is reasonable yes, their interest rates are high but still "reasonable" for people with poor credit.

They send paper statements but you can go paperless if you wish.

You can set up a monthly DD or pay manually, your choice.

Pay off more? You shouldn't be paying anything other than the full balance on a credit card, especially a high interest one but if you elect to make partial payments then yes, you can.

They do send statements but you should register for online banking anyway, it's simple enough to pay using debit card and it'll give you the details for a bank transfer if you prefer to do that.

grumbler

fierystormcloud wrote: »

She wants to apply for a credit card (she already has 2 catalogues and has managed to get them OK obviously, and she pays the monthly payments on time...)

Does this mean that she is paying interest? Catalogues are usually an expensive way to borrow.

So she looked on here (she isn't a member) at the home page where it says check your chances of getting a credit card, and she had a very good chance (it said) of getting an Aqua Credit card.

Aqua with 36% APR is unlikely to be cheaper.

sarahlou29xxx

Hi my credit isn't the best either and I applied online with aqua and gave my bank details and it's no problem they don't take anything out it's just to verify who you are .
Got given a low £500 limit but I only use it to try and improve my credit rating.
I normally use it and pay it in full making weekly payments with my debit card but you can set up a D/D
Didn't need to send any further documents everything was easy .
After applying got my card and pin in a week

Sharon87

If they're asking for your sort code and account number that's normal, if they ask for you card number, expiry date and security number then it's possibly a scam!

Scammers can't do that much fraud wise with sort code and account number, the only thing they can do is set up a direct debit, but then you can cancel it on your bank account!

dresdendave

sarahlou29xxx wrote: »

Hi my credit isn't the best either and I applied online with aqua and gave my bank details and it's no problem they don't take anything out it's just to verify who you are .
Got given a low £500 limit but I only use it to try and improve my credit rating.
I normally use it and pay it in full making weekly payments with my debit card but you can set up a D/D
Didn't need to send any further documents everything was easy .
After applying got my card and pin in a week

If your main purpose in using the card is to improve your credit rating, paying weekly could be counter-productive. You need to make sure you have a balance when the statement is produced, otherwise it may look like the card is not being used. Obviously then pay the statement balance in full before the due date.

AndyPix

Sharon87 wrote: »

If they're asking for your sort code and account number that's normal, if they ask for you card number, expiry date and security number then it's possibly a scam!

Scammers can't do that much fraud wise with sort code and account number, the only thing they can do is set up a direct debit, but then you can cancel it on your bank account!

What she said