Any tips for applying for CC?

jakeec

So I don't have good credit, due to taking out a number of payday loans a few years ago, but I am in low debt. I've been checking my credit reports on a number of sites, and they suggest getting a CC to improve my score. I applied for one with my own bank about 6 months ago, which I've been with for 11 years, and never had any debt with, and they rejected me. That made my credit score go down even more. I don't want or need a CC, but I do want to improve my score. But now I'm dubious about applying for another in case I get rejected again.

Any tips?

Willing2Learn

Your credit score is not seen by your bank (or any lenders). It also not used by them. So don't bother trying to improve your score as it does not matter. Instead focus on trying to build a solid history of successful credit account management.

If you have a poor credit history then you will need to apply for a sub-prime card from CapitalOne, Aqua, Vanquis etc.

Are you on the Electoral Register at your current address?
Do you have a mobile phone contract?
Do you pay your utility bills on a contract?
Do you have any missing payments, late payments, defaults or other negative history on your credit files?

Terry_Towelling

If you don't want a credit card, don't apply for one. You don't apply for credit products in the hope that your credit score will increase (that's a nonsense); you apply for credit products because you need them for some purpose.

Your credit score means nothing to any lenders because they never see it or use it. It's simply a tool to make you feel good (or bad) about yourself and to encourage you to apply for credit products that might make the score provider a bit of commission.

As we can see, the tactic appears to be working. You're being encouraged to go for a card when you don't want one because you feel bad about your score and the score provider is suggesting it will be good for your score.

You say you are in 'low debt'. How low? Are these debts still the pay-day loans of a few years ago? If it looks like you are having trouble affording these (which it may do if you still haven't cleared them) then any credit card company is going to worry that you'll have trouble affording an additional card debt.

jakeec

Willing2Learn wrote: »

Your credit score is not seen by your bank (or any lenders). It also not used by them. So don't bother trying to improve your score as it does not matter. Instead focus on trying to build a solid history of successful credit account management.

If you have a poor credit history then you will need to apply for a sub-prime card from CapitalOne, Aqua, Vanquis etc.

Are you on the Electoral Register at your current address?
Do you have a mobile phone contract?
Do you pay your utility bills on a contract?
Do you have any missing payments, late payments, defaults or other negative history on your credit files?

I was on the Electoral Register up until 2016 when they took me off for some reason. I'm still at the same address. I applied to be put back on it around 6 months ago and never heard anything back. I guess I should chase that up.
I do. I've had contracts with the same provider since 2012.
My bills are included with rent, so I don't pay those myself.
I have 13 closed accounts - with one late payment on one mobile phone contract. No late payments on any other open or closed accounts.

Terry_Towelling wrote: »

If you don't want a credit card, don't apply for one. You don't apply for credit products in the hope that your credit score will increase (that's a nonsense); you apply for credit products because you need them for some purpose.

Your credit score means nothing to any lenders because they never see it or use it. It's simply a tool to make you feel good (or bad) about yourself and to encourage you to apply for credit products that might make the score provider a bit of commission.

As we can see, the tactic appears to be working. You're being encouraged to go for a card when you don't want one because you feel bad about your score and the score provider is suggesting it will be good for your score.

You say you are in 'low debt'. How low? Are these debts still the pay-day loans of a few years ago? If it looks like you are having trouble affording these (which it may do if you still haven't cleared them) then any credit card company is going to worry that you'll have trouble affording an additional card debt.

I guess I mean I would like to improve my credit history then. I owe £700 on an interest-free graduate overdraft. I have another year to pay that off. I also owe £200 to a catalogue, which is also interest-free and I have until November to pay off. I never missed a payment on the payday loans.

Willing2Learn

Don't make any further applications until you are on the ER at your current address. Lenders use the ER as part of their criteria. Check your three credit files to confirm whether the ER has been updated from six months ago.

MovingForwards

Go for a sub-prime credit card, it will be a low limit but they tend to review it after 3 months. Providing you have managed it well, your limit will go up.

Credit_Struggle

Try the eligibility checkers for Aqua / Vanquis and Capital One and see what they say, this doesn’t harm your score

Terry_Towelling

I'm with Willing2Learn on this then. It sounds like the Electoral Register may hold the clue. I'm guessing you may have overlooked the need to complete and return a council registration document some time ago or, possibly, whoever owns the property where you live, omitted (for some reason) to add you to the list when they completed the forms. Hopefully someone isn't trying to keep your presence in the property a secret to preserve something like a Council Tax rebate because you could potentially blow that out of the water by getting yourself on the register. I'm not throwing this in as an accusation, more as an observation based on what you have said about your bills being included in the rent.

A missed/late payment from some time ago isn't a good thing but shouldn't be a showstopper.

I recall when I worked for a card company, there were numerous internal arguments with the Fraud Dept. about granting applications to people not on the Electoral Register. Things have moved on since those days and I believe it is now much more important to be on the register when applying for credit.

nicetomeetyou

I had a very poor credit score on ClearScore but got accepted for a Vanquis card. I didn't need a credit card but like you wanted to improve my credit score, since the credit card I have noticed a positive effect on being offered other credit, although my ClearScore score hasn't improved much. I now have a overdraft with my bank... In about a year I'm going to apply for a credit card with my bank.

[Deleted User]

Again the score is not part of the lending process so can be ignored without any implications.

Don’t get a credit card to improve a fictitious number as it’s an entirely pointless exercise.

dresdendave

!!! wrote: »

Don’t get a credit card to improve a fictitious number as it’s an entirely pointless exercise.

Although used wisely it can improve your credit history, without costing you a penny in interest.

OP, I hope you are not paying to view your meaningless credit score.