Credit card from your own bank or not?

Phythers

Are you more likely to get accepted for a credit card from a bank that you currently bank with? I'm keen to get a credit card to improve my rating as I've never had one. I've got an ISA with Natwest and their soft search said I had a 9/10 chance of being accepted but there's an annual fee. HSBC on the other hand is where all my wages and transactions take place (and a 150 overdraft) so they know more about my finances, Is it worth trying either of these or should I just go straight for the credit builders?

[Deleted User]

They know more about you, so potentially, yes.

Either way, go for a fee free card.

mwarby

Have you used one of the price comparison sites which does a soft search ? maybe there are other 9/10 credit cards. If you have a small overdraft and no bad history I suspect you'll have a few options, but your credit limit will start pretty low

I'd try whichever card (providing it shows reasonable chance of acceptance) takes your fancy, if you don't get it leave it a few months and try a credit builder card

mwarby

If your intention is to pay the card off in full every month, a credit builder card may work best for you, just don't get one and make minimum repayments

20aday

Your bank would know more about you therefore you *could* stand a better chance of obtaining a credit card with them, yes.

Just check to see if they exercise the right to "offset". That means if you fall behind on repayments they reserve the right to use the balance in your current account to clear any late/missed payments.

JimmyTheWig

20aday wrote: »

Just check to see if they exercise the right to "offset". That means if you fall behind on repayments they reserve the right to use the balance in your current account to clear any late/missed payments.

If they are using this card to build credit and plan on paying off every month then this shouldn't be an issue.

vacheron

The opposite has been true in my experience.

• I've had acceptance with good credit limits from Santander who I have banked with for 3 years.
• I've had acceptance with reasonable credit limits from HSBC who I have banked with for 2 years.
• I've had acceptance with miserable credit limits from BOS (Halifax) who I have banked with for 21 years!

All these accounts were well managed, never overdrawn and no penalties / charges ever incurred.

I've had cards with higher limits than all of my main banks above from Tesco, M&S and recently Sainsburys. All of whom I've never banked with before. (Though I do have a Tesco Clubcard and a Nectar card which may count in some strange way).

So in my experience the opposite has been true!

Phythers

Thanks for the advice. I'll let you know how I get on. Incidentally as a new card owner what's good credit limit to ask for (i'm thinking the lower the better and I really don't envisage actually needing the card for anything major)

[Deleted User]

You don't ask for a credit limit. They'll tell you.

See what you get and reduce it if necessary, but don't take that action lightly.

Doctor_Duke

Re Natwest: Not sure if you have a Reward Current Account but if you do they refund the £24 fee for the Rewards Credit Card and you can earn cashback too but RBS don't have 0% offers.