Nationwide low credit score - indicative of bad credit history?

philip1427

As a recent 'reshuffle' of the credit cards a carried. I applied for the Nationwide select credit card. I found it attractive due to it 0.5% unlimited cash back , wide acceptance as a non-amex card and its no overseas spending fees.
However I only received a £1000 credit card limit....
A bit about my current situation. I recently closed an aqua credit card. Mainly due to its lack of benefits but it was my first credit card and it did stand me in good stead to establish a credit score. I also have an Amex Gold charge card which I have spent up to £2000 in a month and paid off in full every statement. I enjoy this card and have received good use out of it but cannot justify the £140 fee. I am thinking of transitioning to the platinum everyday credit card but still undecided. I am 19, currently at university and have a part time job as well as investment income.

Is this credit limit normal or a bit mean?

thanks in advance

[Deleted User]

With a lack of credit history and part time employment, it would seem a prudent limit.

Vortigern

NW might offer you an increased limit after you've had the card for 6 months. They did this for me.

Ben8282

So yet another 19 year old, a student with a part time job, who holds an Amex Gold Charge card. Are these Amex Gold charge cards becoming the new credit builder card, in competition with Vanquis etc?
You closed your one and only credit card, an Aqua card with a £2k limit. This account was under 2 years old at the time of cancellation so will remain on your credit files with that account age for the next 6 years.
At that point your available credit would have been nil as the charge card does not report a limit. You then, as a student with a part time job, applied to Nationwide and were lucky enough to be accepted. I think the credit limit given was quite generous in your situation.
But if you can use your Amex charge card and have no problems in spending 2k per-month on it, then why are you so concerned about the credit limit on the Nationwide card?

phillw

Ben8282 wrote: »

Are these Amex Gold charge cards becoming the new credit builder card, in competition with Vanquis etc?

They appear to help your credit utilisation.

https://thepointsguy.com/2016/07/how-charge-cards-affect-score/

Nationwide were always more cautious who they lend money to. The Amex charge card has to be paid off every month, so they assume you'll only buy what you can afford & you are less likely to suddenly find yourself unable to pay. While nationwide will lend you the money on an ongoing basis, you'd pay interest but in a years time you might lose your income & not be able to pay the capital. Once they have a better idea of your spending habits they'll probably raise your limit.

Ditch the Amex and just use your nationwide card and use your debit card or cash for the rest. If your cash flow is so bad that you can't afford to do that then you need to cut back on your spending anyway.

philip1427

Ben8282 wrote: »

So yet another 19 year old, a student with a part time job, who holds an Amex Gold Charge card. Are these Amex Gold charge cards becoming the new credit builder card, in competition with Vanquis etc?
You closed your one and only credit card, an Aqua card with a £2k limit. This account was under 2 years old at the time of cancellation so will remain on your credit files with that account age for the next 6 years.
At that point your available credit would have been nil as the charge card does not report a limit. You then, as a student with a part time job, applied to Nationwide and were lucky enough to be accepted. I think the credit limit given was quite generous in your situation.
But if you can use your Amex charge card and have no problems in spending 2k per-month on it, then why are you so concerned about the credit limit on the Nationwide card?

I think if you believe that amex gold is a status card you are mistaken. Amex as a company wants as many customers as possible. Just like any business.
Fair enough about aqua being open for only a year but I wante to move to a card with added benefits like cash back. I wasn't using the aqua which I here is bad for your credit score. Using moneysavingexpert credit club, I have a score of 980 which I want to retain.
I am concerned with the credit limit because I still want to fredom of being able to make larger purchases if I don't want to pay the £140 a year Amex fee!
I feel with your comment you have animosity towards young people who have started to try and support themselves with jobs and creating other incomes and who are interested in looking after their finances, is this correct?

philip1427

phillw wrote: »

They appear to help your credit utilisation.

https://thepointsguy.com/2016/07/how-charge-cards-affect-score/

Nationwide were always more cautious who they lend money to. The Amex charge card has to be paid off every month, so they assume you'll only buy what you can afford & you are less likely to suddenly find yourself unable to pay. While nationwide will lend you the money on an ongoing basis, you'd pay interest but in a years time you might lose your income & not be able to pay the capital. Once they have a better idea of your spending habits they'll probably raise your limit.

Ditch the Amex and just use your nationwide card and use your debit card or cash for the rest. If your cash flow is so bad that you can't afford to do that then you need to cut back on your spending anyway.

Thanks for your reply. Yes I'm ditching the amex however I might replace it with th platinum cash back everyday because it has slightly better benefits to the nationwide. I will use the nationwide card when Amex is not an acceptable pay,met method.
Luckily I have no issues paying off my cards I'm full. I am very cautious with money and aim to maintain this in the future. Thank you for your thoughts

Ben8282

philip1427 wrote: »

I think if you believe that amex gold is a status card you are mistaken. Amex as a company wants as many customers as possible. Just like any business.
Fair enough about aqua being open for only a year but I wante to move to a card with added benefits like cash back. I wasn't using the aqua which I here is bad for your credit score. Using moneysavingexpert credit club, I have a score of 980 which I want to retain.
I am concerned with the credit limit because I still want to fredom of being able to make larger purchases if I don't want to pay the £140 a year Amex fee!
I feel with your comment you have animosity towards young people who have started to try and support themselves with jobs and creating other incomes and who are interested in looking after their finances, is this correct?

You are correct. Amex is a business and wants as many customers as possible. But, as far as charge cards are concerned, they want fee paying customers.
No, I don't consider the Amex Gold Charge Card to be a 'status' card in the sense that you imply; somebody who wanted that sort of 'status' would go for the Platinum Charge Card.
What I am questioning is product suitability. You are wrong if you believe that I have any personal animosity towards young people who have started to try and support themselves with jobs and creating other incomes and who are interested in looking after their finances, I don't. But at the same time I do not believe that a young person who, simply by their age, cannot possibly have demonstrated the degree of residential and employment stability or possess the necessary credit management history, can be considered a suitable applicant for a charge card of this type.
If you do want to spend lots of money each month without worrying about credit limits then the charge card is probably the best way to go. But you will have to pay the fee.
If you do swap for the Amex credit card, there is no guarantee the credit limit will be any higher than Nationwide have given you.
You can't have it both ways. Credit limit OR Fee.

[Deleted User]

philip1427 wrote: »

I wasn't using the aqua which I here is bad for your credit score. Using moneysavingexpert credit club, I have a score of 980 which I want to retain.

Your credit score is fictitious, and even if it weren't, an aqua card has no more of a negative impact than any other card.

phillw

philip1427 wrote: »

I feel with your comment you have animosity towards young people who have started to try and support themselves with jobs and creating other incomes and who are interested in looking after their finances, is this correct?

Lots of people borrow money on credit cards to create other incomes and their initial success makes them think they are invincible. If your cash flow is that bad that you need to borrow all of it, then you're one bad day away from it all collapsing.

It's not animosity, some people care when others go into debt and others care that people defaulting on their debts puts up costs for all of us.

Marchitiello

You could still downgrade to the green charge card which carry a lower fee but still earn membership points, or get the blue chargecard which has no fee and could be your back up if you are getting closer to the limit on your Nationwide.

Another option could be to get a Barclaycard and after a while product change it to the Cashback duo card which allow you to have cashback on both an Amex and Visa.