Applied Card, just lost job

woogle

Hi,

Looking for soem advice.

Thursday I applied for a new CC. Friday AM it was approved. Friday night I got laid off.

I feel like I should cancel it. I left on poor terms so my employer so if they call he will certainly say I'm not there anymore.

Should I call up the CC and just tell the truth? Will it be too late to stop?

Please help

woo

Mikhail

Most likely nobody gonna call. I'm a freelancer and CC companies don't like that, coz my income is not constant and from multiple sources, however, my credit score is 999 and all my bills are paid on time. So, sometimes I use my past employment information, like 3 years old, no problems whatsoever. The question you should ask, can you afford that card.

chattychappy

Assuming you applied in good faith (ie didn't know you were about to lose your job), I would do nothing.

When you get the card, only spend what you can afford to pay back. If you think you will be unduly tempted to go crazy, then cut it up/close the account.

I would also look at the T+Cs. If there is anything about telling them of changes in personal circumstances, you may wish to do so. BUT, I'm sure nobody bothers.

onthefencepost

No harm in keeping it for emergencies but the bottom line is can you afford to pay it back with you being laid off?

Maybe get it and cut it in two rather than canceling it?

HappyMJ

woogle wrote: »

Hi,

Looking for soem advice.

Thursday I applied for a new CC. Friday AM it was approved. Friday night I got laid off.

I feel like I should cancel it. I left on poor terms so my employer so if they call he will certainly say I'm not there anymore.

Should I call up the CC and just tell the truth? Will it be too late to stop?

Please help

woo

This is probably the times when you are going to need the card.

If you are working there's really no need for credit cards as your salary/wages pay for everything. Credit cards would only then be used for the additional protection they offer and as a cash management tool.

It's when you're not working you need money for food which would be considered an emergency when you would either go without or use the card.

However.....a really big HOWEVER....you've got to be 100% sensible with it you will get benefit money one day so you've got to try and live on that amount of money each week without using the card to supplement the small amount of benefits that you will get.

If you've got no money whatsoever keep it and use it for food until you get benefits in payment then stop using it and use your benefits to make the minimum payments. If you're really sensible you would have only accrued £100 of debt over the next few weeks and the payment for that would only be £5 per month. Once you get a job again you can pay that off in full once you get you're first full pay cheque. You might even need to use the card for the first month of work when your benefits have stopped and you haven't been paid yet but need to pay for transport.

You need to be sensible whatever you do.

HappyMJ

Mikhail wrote: »

Most likely nobody gonna call. I'm a freelancer and CC companies don't like that, coz my income is not constant and from multiple sources, however, my credit score is 999 and all my bills are paid on time. So, sometimes I use my past employment information, like 3 years old, no problems whatsoever. The question you should ask, can you afford that card.

Careful doing that...actually don't do that...as one day they will call and you will get a fraud marker against your file and never again be able to get credit.

Just tell them you are self employed. Under "Your employer" put your own name and address.

tomtontom

Mikhail wrote: »

Most likely nobody gonna call. I'm a freelancer and CC companies don't like that, coz my income is not constant and from multiple sources, however, my credit score is 999 and all my bills are paid on time. So, sometimes I use my past employment information, like 3 years old, no problems whatsoever. The question you should ask, can you afford that card.

What you are suggesting is essentially a criminal offence, you are obtaining credit by deception.

OP, you should advise the lender of a material change in circumstances. I hope you find new employment soon, if you haven't already done so get registered with some agencies - that's the best way to get work in the very short term. Good luck.

Vortigern

onthefencepost wrote: »

Maybe get it and cut it in two rather than canceling it?

Bad advice! Either keep it and use it sensibly within your means, or exercise "your right to cancel." Cutting up a card does not cancel the credit agreement and leaves you with "available credit" that you can't access.

The right to cancel applies within the first 14 days and should leave no mark on your credit file apart from the search they did before they gave you the card.

bris

Cancel it, you have been laid off at almost the exact same time as the application. It could be seen as deception to obtain credit fraudulently.


If you spend it and can't pay it back they could investigate and they would find it hard to believe you didn't know you were being laid off with no notice let alone the next day.

m4rc

Phone employers? Investigate and find it hard to believe you didn't know you were going to be laid off?

Sure, they could, but I've never known anyone to call my businesses asking if x or y worked there. I wonder if you all think card issuers only have a few customers and spend all day tracking them, it's cheaper not to track them and just make as much as they can in interest and balance transfer fees.

chattychappy

m4rc wrote: »

Phone employers? Investigate and find it hard to believe you didn't know you were going to be laid off?

Sure, they could, but I've never known anyone to call my businesses asking if x or y worked there. I wonder if you all think card issuers only have a few customers and spend all day tracking them, it's cheaper not to track them and just make as much as they can in interest and balance transfer fees.

Couldn't agree more. Fraud can be picked up when people make multiple applications writing down different details. NHunter (google if necessary) is all about that - and that's probably as far as employer/salary data goes for the vast majority of applications. I think the simple volume of appications coupled with privacy concerns means that CCs simply don't go into the level of checking people suppose. In my years as an employer, only once was somebody checked - it was in the mid 90s when Barclaycard simply asked if I had a staff member by the name of Miss X.