118118 credit card

dazzaofdagenham

dresdendave wrote: »

If 118118 is the only CC available to your friend you might as well give them the money rather than lend it, you're unlikely to see it again.

That’s not true....a lifetime friend who has had a few bumps on the journey.

We all need a helping hand s9metimes

waddy256

Id also like advice on this …

Using clear score they say I am pre approved for a 118118 creditcard with 100% chance of being accepted.

I have a terrible credit history with 1 ccj in the last 6 months.
I haven't had a credit card for 10 years and Im working very hard to pay off my debts and rebuild my score.

Should I go for this ? Im scared of getting turned down and further hurting my credit score but I can afford the monthly fees.
Am I better off with a prepaid credit card ?
Any advice would be greatly appreciated.

MisterBaxter

I'd probably try companies like Vanquis, Aqua or Capital One before going with the 118118 card but if it's the only option available that will allow someone to build up some good credit history then it may be worth the lower tier (£8 per month) to do it, after a few months of good history it may be possible to get one of the sub-prime cards that have no fee at which point it would probably be best to dump the 118118 card.

I have access to mainstream cards but one of the free CRA services keeps trying to push this card on me so I think I they are being quite active in their marketing.

PixelPound

waddy256 wrote: »

Id also like advice on this …

Using clear score they say I am pre approved for a 118118 creditcard with 100% chance of being accepted.

I have a terrible credit history with 1 ccj in the last 6 months.
I haven't had a credit card for 10 years and Im working very hard to pay off my debts and rebuild my score.

Should I go for this ? Im scared of getting turned down and further hurting my credit score but I can afford the monthly fees.
Am I better off with a prepaid credit card ?
Any advice would be greatly appreciated.

100% means effectively preapproved so you'll get it. The problem is you get charged a monthly fee which is the equivalent of maxing your card out and getting charged interest for that maximum amount. So if you are trying to control spending and use and pay off, then this is not a card, unless there are no others.

Try Vanquis and Cap One they'll often give you a card with a low credit limit, but you'll pay less each month if you don't max it out even if you don't clear it each month and pay some interest.

[Deleted User]

Stop making notions towards your score.
It’s not a real thing.

You want to build/improve your credit history.

Don’t go the 118118 route.
Try another lender and if no luck try again in a few months time

AlexFerrari

Do not get this card,I had problems before with credit cards,about 5 years ago(never missed a payment since) but still impacting my file for another year or so,but this card came across and I took it in March with 250 limit,they promised an increase on month 6,now is month 9 and they still refusing to increase it,in the mean time I got 3 current accounts they all increased my limit to 1000/1500 since August,then I noticed a sudden drop in my score over the last 3 months(overdrafts are not being used btw) so contacted all 3 CRA for explanation and they all told me unless 118 is gonna match my limit to 1000/1500 is gonna further damage my credit file,spoken to 118 and they still refusing it,the advice I got from CRA was to shut the account b4 is gonna cause even more harm,a 250 limit apparently affects the affordability checks,unless is 1000+ ur in trouble

[Deleted User]

The card is fine.

It's your misunderstanding of your credit files which is the key issue here.

[Deleted User]

Increases what limits on your current accounts?
Overdraft limits?
Bad ideas.

You’re completely misunderstanding the concept of credit management here

System

I did market research for a product that's basically identical and being launched shortly. The way it works is this. They trumpet about the fact there is no interest. What you get instead is a fixed line of credit you're allowed to use and every month you pay a set monthly fee no matter how much of your credit you use.

So for example you might be given a limit of £500 per month and no interest is charged, and every month you just pay £17 for that right. Whether you owe nothing or you owe £500. You don't have to pay the balance off either. You can keep it high forever if you want to and simply just keep paying the monthly amount.

Pros: it is very easy to budget as you always know exactly what your credit card payment will be. This is why it's marketed at young people. I know it's a generalisation, but having never had money to spend in the past and not a lot of experience with budgets, a lot of young people don't have much financial savvy to comprehend what their credit is actually costing them. These cards have great apps that are easy to use and are very user-friendly.

Cons: the idea that you are not paying interest is a LIE. That £17 monthly fee (or however much you choose as your credit limit) is replacing the interest they would have charged you. If you figure out what a £17 per month repayment would be on a traditional card with a £500 maxed out limit, you quickly see that you're paying the same as 40% interest. Which is horrific and incredibly expensive for credit. And worse still, if you have only spent half your limit, you are still paying £17. That's 80% interest.

To sum it up this card takes advantage of people who don't understand credit. It prays on people who are uneducated on money in exactly the same way that pawn shops and payday loan companies do. The best revenge on this is to learn a little bit about money and kiss this one goodbye. If you truly can't get ANY other credit, ask them to reduce you to the smallest possible limit and repayment then spend £10 a month and pay it off on every monthly statement date. Behave yourself financially until you can get a Capital One / Aqua / NewDay / Vanquis card and then get rid of this shark company for good.

SnowTiger

Atypi_Gal wrote: »

I did market research for a product that's basically identical and being launched shortly. The way it works is this. They trumpet about the fact there is no interest. What you get instead is a fixed line of credit you're allowed to use and every month you pay a set monthly fee no matter how much of your credit you use.

It's not a new idea. Raphaels Bank‎ has already offered a couple of cards that operate on a similar principle. IIRC they offered Rise, then re-branded it Shout.

Here's an article from 2013 about their Shout card.

Both seemed to disappear from the marketplace quite quickly.