New 0% credit card Questions

Student_debt_Hype

Hey there Forum,

I just wanted to ask a few questions about applying for a 0% credit card. I have signed up with the credit club and I am very likely approved with many banks. The primary reason for this credit card is to buy a new phone (my cheap but reliable lenovo phone died and fixing it was a bit of a disaster) and insurance for it, no other costs will be going on the card (it is likely to get cut up right after the purchase, to ensure I cannot spend with it willy nilly). These are paired with a fairly unusual and unfortunate set of circumstances that befell me today.

So first question: When I apply for a credit card, and I declare my salary or expected income for the year (hourly rates contracts etc) do they check this? Using my main current account?

Second question: If they do check my current account, do they know my overdraft (I am in one at the minute - part of my unfortunate events), does this affect my application (bearing in mind I have used it before, paid it off and even reduced the overall amount of overdraft I can have, voluntarily).

I have just started a new job (one I very much intend to keep) but I don't have any proof of them paying me yet - this is because of an induction day flop is that I gave them the wrong bank details (a 9 instead of a 6 in an account number) and I haven't been paid today as I would have (which would have essentially solved most of my current financial problems. When I get paid, I will have plenty disposable income and all that good jazz. But I am currently using my first ever phone I had (htc desire S) and it not only is old and grey but its pretty unreliable now, freezing and shutting down randomly.

Which leads me to my Final question: If I were to apply now, with no proof of income (but I am employed with my expected income being reasonable) and in my overdraft, how likely would I be to be accepted. Would there be a way to maximize this?

The Bonus question is: When I finally get paid for this month (in up to a months time), it will be by cheque (some stupid coop policy about paying if it bounces), which wont register its come from a business - will this matter? If I wait for the cash to be in my account, does it matter it didn't come from a business (for my application)?

Sorry for going all out here, I am new to credit, I really just wanted a small loan to replace my phone, and a 0% card is the best way to do that!

Thanks so much in advance and sorry for waffling !!

bigadaj

Highly unlikely you'll get a 0% card, probably looking at a credit builder card, which might have high rates but if you pay in full this won't matter. Even one or two months paying say 3% might help you out of a hole so long as you stay disciplined and pay the debt down as soon as you have the money.

You'll have several negative points in credit terms, working whilst being a student presumably means part time and fairly low wages, time in employment is obviously a few weeks, are you on the electoral roll, how long have you lived at your current address?

The credit card company won't be able to see your earnings or current account directly but will collate information to,determine whether what you say is reasonable and logical, so lying or exaggerating isn't a good idea.

The sensible approach might be to struggle by on your old phone or even not have one until you actually have the money, though it might make things awkward for a while.

[Deleted User]

If this is your first card and you're just starting a new job , you're unlikely to get a 0% card.

Do you have any credit history?
Were you previously working?
How much do you have saved? Is buying the phone with cash an option?
Does your bank offer any good cards?

Student_debt_Hype

So I have had several phone contracts (that counts for credit history right? Does paying off overdrafts count?) and i'm on the electoral register. I also paid into a share save scheme for the years I was at Morrisons Supermarket. I have worked at Morrisons, subway, a carwash, and coop and in a volunteering capacity for several organisations, one of which was the student union. I also privately rented (not student lettings), dunno if that counts for anything! I've probably done other stuff, but I've forgotten about it! I've been employed since 16 (part time) and I am now 23 and I've finished university (I'm working part time for a year while volunteering and doing some other personal projects and then doing a masters).

I answered the questions of the credit club (my credit score is good, credit approval rating is average) AND on the virgin pre approval site thing, both said 95%. Buying in cash is a no go, and I used all my savings from my Morrisons share save during university (that stupid parents income tested loan system got me poor as hell as a student) and I have a student overdraft, but I was told that didn't really count as an overdraft until it 'converted' into a standard account.

My banks (Lloyds) offer some pretty decent cards, would it be worth applying for their 0% or just any card, since I have been banking with them since I was a teenager? Eventually I wanted to switch current accounts for some bonuses and created a new one for saving (apparently they offer the best rates assuming you put enough into them). What are the cards I should be looking at for little/ no credit history?

If the credit companies don't see into my account, but I haven't had income for several months (but my current job pays decently, far and away enough to afford some kind of credit) whats the best course of action? Wait a few months until Its been paid into a couple times? I am leaning of the side of chancing it right now as struggling with my phone probably isn't an option for very long, I have needed one for a while, once I got this job, that was priority number one I can barely take calls! I'm pretty desperate for a new phone (got my eyes set on the one plus 3t - cheaper than most and should give excellent value for investment) and getting it on contract means paying 150-200% more than I need to!

(Thanks for taking the time to post guys, I really appreciate it!)

Student_debt_Hype

I sorted out my pay and received the cheque, its in my account, waiting to be cleared (3-7 days I think).

Well, my plan is to make an application to Virgin or Lloyds (my current account bank) and see what happens, my dad said it might be easier to get a Lloyds card since I have banked with them since school and almost always been in good credit on my account, and should that fail, go down the Aqua Card route - even if I am declined on Virgin, this should make little difference in terms of an aqua card as its a credit builder card, from what I've read, I'm almost certain to be accepted. Even with the relatively high interest rates (they have 3 months at 0% i think) I am likely to pay 10-30% of the debt off each month leaving around anywhere from 20-50 quid interest paid, which is a fair price considering, at gives me some credit portfolio to show for my troubles.

Once it is paid off, I am unlikely to need a card again for anything. Would it be a good idea to use the card to say pay my netflix subscription or something and create a Direct Debit to pay it off on the card, so continue with widening my credit portfolio?

Thanks again!!

Dobbibill

Your Dad is correct, as you already bank with them, they are ideal as your first choice.

Rather than doing an application blind, why don't you ring them and ask if you are eligible to apply for a CC with them. If they say then you've ruled them out without an unnecessary application & credit search.

Anything you normally spend on your debit card is perfect to put through a credit card like Netflix, fuel, groceries etc. Use it and make sure the money is available to pay it off in full, setting up a DD is ideal.

Superscrooge

I would try the eligibility checker first before making a formal application. This will give an indication of how likely you are to be accepted without the credit search showing to other lenders.

https://creditcards.moneysavingexpert.com/?purchases&_ga=1.170957152.157308799.1449507210

Lloyds offer several 0% purchases credit cards, so if the eligibility checker shows a good chance of acceptance for Lloyds CC's and you already bank with them, then I would agree with previous comments and try for a Lloyds CC.

Student_debt_Hype

Superscrooge wrote: »

I would try the eligibility checker first before making a formal application. This will give an indication of how likely you are to be accepted without the credit search showing to other lenders.
.

I had a look - the card doesn't seem to be on the eligibility checker or the credit club! But it is deffo offered by lloyds!

Rather than doing an application blind, why don't you ring them and ask if you are eligible to apply for a CC with them. If they say then you've ruled them out without an unnecessary application & credit search.

I can do that? Isn't credit checking all back end and automatic, will they be able to give me any kind of indication of eligibility or success?

Well, I'll do that sometime this week, I have a few things to sort, like changing my student santander account to a graduate account and things that I want to get over and done with before this!

Dobbibill

Student_debt_Hype wrote: »

I can do that? Isn't credit checking all back end and automatic, will they be able to give me any kind of indication of eligibility or success?

Credit searches are done on application. Just having a chat with CS will not be an application, it will just be a guideline on whether you MAY be accepted if you were to do an application.

If they say something on the lines of 'not at the moment' then don't bother, move on to the next card/provider.