Got a new Credit Card - I am Livid

xlnc99 · 2 December 2019 at 6:47PM

Hi folks,

So i have poor credit history which i am trying to rebuild. I got two cards last month - AQUA and Amazon which will hopefully help. I logged onto Clearscore and recieved a 100% approval for a 118 credit card. I applied and was accepted straight away.

Card is in the post and no problems

I just had a quick look on their site and it seems i have to pay a monthly fee (no amount given) just to use the card even though there is no intrest at all for anything else.

I am fuming as they did well to hide this information. I am now wondering shall i cancel this card or is it worth keeping for 6 months or so to build some history up and then cancel

Would this card look better on my profile or not

Any advice appreciated

[Deleted User] · 2 December 2019 at 6:52PM

xlnc99 wrote: »

Hi folks,

So i have poor credit history which i am trying to rebuild. I got two cards last month - AQUA and Amazon which will hopefully help. I logged onto Clearscore and recieved a 100% approval for a 118 credit card. I applied and was accepted straight away.

Card is in the post and no problems

I just had a quick look on their site and it seems i have to pay a monthly fee (no amount given) just to use the card even though there is no intrest at all for anything else.

I am fuming as they did well to hide this information. I am now wondering shall i cancel this card or is it worth keeping for 6 months or so to build some history up and then cancel

Would this card look better on my profile or not

Any advice appreciated

You just found the information on their website but feel they hid it from you?

I just went to their website and saw it straight away

xlnc99 · 2 December 2019 at 6:54PM

i must have missed it!

However that is not the issue on hand, it is whether i should keep it or not? Will there be any benefit for me to build up my history using this and then cancelling it 6 months - 12 months

Ben8282 · 2 December 2019 at 6:58PM

Yes that is correct. There is a monthly fee associated with the 118118 credit card.
If you got two credit cards last month why exactly did you apply for a third one this month? Surely you have not filled them up to their limits already?
Did you really believe that 3 hard searches for credit cards and 3 new accounts in a month would benefit your credit profile? If you have made 3 successful credit card applications in such a short space of time then I would say your credit profile is probably not too bad.
This is a perfect example of how a company such as clearscore works. People are encouraged to improve their credit score and are told they are 100% guaranteed for a product for which clearscore will receive a financial benefit when they apply and they rush off to immediately apply for it in order to improve something that probably doesn't need improving.
Concerning the 118118 card, I believe that the fee depends on the credit limit. I also believe that if you actually use the entire credit limit the amount you will pay is not too bad compared to if you were paying interest on a different card, but if you don't use the entire credit limit or if you don't pay interest on your other cards then the 118118 card is not for you.
It's a shame you didn't have your \quick look' on their site before applying for the card rather than after.

Ben8282 · 2 December 2019 at 7:00PM

xlnc99 wrote: »

i must have missed it!

However that is not the issue on hand, it is whether i should keep it or not? Will there be any benefit for me to build up my history using this and then cancelling it 6 months - 12 months

No benefit whatsoever. You can build up a history using the two cards that you successfully applied for last month.

xlnc99 · 2 December 2019 at 7:03PM

I am not sure why i applied for a third card i guess i am trying to sure up my credit profile. 3 card cards look better then 2 if i pay them off in full each month. I dont intend to apply for anything and i wasnt looking for a credit card but the offer came up and i got hooked in. I dont mind the credit card and having a third one but its just the fee that is putting me off.

I do believe i can cancel it with 14 days and i have a limit of £500 and i read on here that the fee is £14 per month for a £500 limit. Not sure if that has changed

Shall i keep the card to boost my profile and pay it in full each month for say 6 months - 1 year and get rid (hopefully getting a better credit card) or cancel it

xlnc99 · 2 December 2019 at 7:04PM

Ben8282 wrote: »

No benefit whatsoever. You can build up a history using the two cards that you successfully applied for last month.

ok - i may just get rid of it. I do not believe there is a contract for credit cards and you can cancel it anytime. I thought id i did one year of full payments each month to this credit card then cancelled it it would look good on my credit profile as a settled account

Ben8282 · 2 December 2019 at 7:20PM

You keep mentioning 'looking good' and 'boosting your credit profile'.
Look good to WHO?
Has it ever occurred to you that the credit profile of somebody who has successfully applied for 3 credit cards in the space of 1 month may not need boosting?I

xlnc99 wrote: »

thought id i did one year of full payments each month to this credit card then cancelled it it would look good on my credit profile as a settled account

If you wish to spend £14 per month for this purpose then go ahead.