How does a solvent individual get a credit card with little or no credit history?

2020_hs

Greetings, fellow MSE forum members,
I have an interesting question on which I'd welcome your thoughts.  I am a UK citizen and lived in the UK until I was in my early thirties.  I made a decent living and had multiple credit cards, which I always paid off in full each month.  I moved to the US for 18 years and just came back last year.  During that time, I made the mistake of not using my UK cards except my Barclaycard, since I was living and working in the US and had my own US bank accounts and credit cards.  Despite earning six-figure money and having just bought a home with a LTV of 34%, I am struggling to get a credit card.  Barclaycard won't increase my credit limit, despite my having maintained a six-figure credit balance on my Barclays current account for 3+ years.  They even told me that since I have been a cardholder since 1988, the card doesn't show up on credit searches as it is too old!!  I have just been accepted for an AmEx Platinum Cashback card with a whopping GBP1,000 limit!!   I know that Capital One has a credit 'rebuilding' card.  I am obviously more interested in cards that deliver more bang for the buck, with attractive Avios or Cashback offers.
Question:  Is there a way to fast-track my getting decent credit limits?  With interest rates as low as they are, I am perfectly willing to 100% cash-cover the limit until the credit card company is willing to trust me.  I did this in the US and it worked well.  However, UK credit cards don't appear to offer that option, based on my research.   Any other constructive comments welcome.  Thanks in advance for your input:-)

ARH_2

My experience of the Amex Platinum Cashback has been that whenever the statement balance gets to say 80% of the credit limit, they write to me and put the credit limit up. I pay it in full by direct debit and have never asked for an increase. I use it for business expenses, so have had a few big statements over the years. Each time has triggered a credit limit increase even though ordinarily I'm only now only using a small fraction of the limit.

Use it and pay it off each month - they'll figure out they can trust you quickly. 

[Deleted User]

You already have a couple of cards, so all you need is time and the right applications.

There's absolutely no need to go the secured card route.  With a lack of history and tightened lending criteria, all you need is a little patience.

Fighter1986

2020_hs said:

Greetings, fellow MSE forum members,
I have an interesting question on which I'd welcome your thoughts.  I am a UK citizen and lived in the UK until I was in my early thirties.  I made a decent living and had multiple credit cards, which I always paid off in full each month.  I moved to the US for 18 years and just came back last year.  During that time, I made the mistake of not using my UK cards except my Barclaycard, since I was living and working in the US and had my own US bank accounts and credit cards.  Despite earning six-figure money and having just bought a home with a LTV of 34%, I am struggling to get a credit card.  Barclaycard won't increase my credit limit, despite my having maintained a six-figure credit balance on my Barclays current account for 3+ years.  They even told me that since I have been a cardholder since 1988, the card doesn't show up on credit searches as it is too old!!  I have just been accepted for an AmEx Platinum Cashback card with a whopping GBP1,000 limit!!   I know that Capital One has a credit 'rebuilding' card.  I am obviously more interested in cards that deliver more bang for the buck, with attractive Avios or Cashback offers.
Question:  Is there a way to fast-track my getting decent credit limits?  With interest rates as low as they are, I am perfectly willing to 100% cash-cover the limit until the credit card company is willing to trust me.  I did this in the US and it worked well.  However, UK credit cards don't appear to offer that option, based on my research.   Any other constructive comments welcome.  Thanks in advance for your input:-)

That's fine, leave things just as they are for the next 12 months.

Don't apply for or open anything else. You've got the Amex now. Use it monthly, and pay it off in full every month.

In addition, write to the Amex underwriting team, enclosing proof of your assets, bank balances, and income, requesting a manual review of your assigned credit limit taking into consideration your current financial status.

You could also write to them explaining you've had a Barclaycard for 32 years and have never missed a payment, enclosing the last 12 months statements - explaining it is too old an account to appear on your credit file. 

I do find this a little odd though as Barclaycard added my mother's account to her credit file around 20 years ago. It couldn't also hurt to write to barclaycard underwriting team granting permission to report account conduct to credit reference agencies about your existing account and making a formal request they update the CRAs with your account status and account history. 

Don't be tempted to make any more applications or open any new accounts in the next 12 months now you have the Amex platinum as this will do damage, not good. 

cymruchris

To get more bang for your buck will likely take a little time and patience. You now have the Amex - use it - pay it off - use it - pay it off - and that'll help build up your history to allow further future applications with other providers. During this time your Amex limit will likely rise through a pattern of successful financial management (in their eyes). It doesn't really matter to them if a customer has a million in the bank or not, they're just interested in your continued positive behaviour, and will increase your access to higher limits and new products over a period of time. 

brianposter

I can see no reason why you should not make a good-natured complaint to Barclaycard. Simply point out that they have been satisfactory over many years and you would like to continue to use their services.

Just make sure it goes in as a formal customer complaint by letter.

Paul_01

Why do you keep a 6 figure balance in your Barclays current account?

msallen

Did you have an Amex in the US?
I can't guarantee this is still the case, but certainly up until at least a couple of years ago they used to allow your "membership" in one country to be transferred to another one, so any positive credit history with them stateside would then be taken into account here.

skinnish

As @msallen has stated they call it a global card relationship. I would ring and speak to them about this. if you did not have an amex in the US then what @Fighter1986 said

Thrugelmir

2020_hs said:

They even told me that since I have been a cardholder since 1988, the card doesn't show up on credit searches as it is too old!! 

Older terms and conditions gave the finance company no right to share your data with other bodies. 

gt94sss2

2020_hs said:

Question:  Is there a way to fast-track my getting decent credit limits?  With interest rates as low as they are, I am perfectly willing to 100% cash-cover the limit until the credit card company is willing to trust me.  I did this in the US and it worked well.  However, UK credit cards don't appear to offer that option, based on my research.   Any other constructive comments welcome.  Thanks in advance for your input:-)

A few questions/comments:.
1. Are your details upto date on the electoral roll with your new address? If not, update them.
2. Who did you bank with in the US? Some banks have links with those in the UK (Amex has already been mentioned above)
3. No idea why you keep such a high balance in your current account - but that your own business.However, if you're willing to move some of your funds to get a credit card, you might want to consider opening a free HSBC Premier bank account for which you need to agree to transfer £50,000 in savings or investments to them. This entitles you to apply for their HSBC Premier Credit Cards which come with a minimum credit limit higher than the 1K that Amex are offering you. There are you different credit cards (one free, one with a fee) but both offer air miles/shopping vouchers etc and other benefits. 

They should be well versed in dealing with expats coming home and if you wanted, they could also arrange for a Premier account with HSBC USA to be opened for free assuming you still have assets in America and would find that helpful to have a link between your UK and US accounts.

I did this some years ago, when I went to live in the US for a while and it was great to have all my US banking set up before I arrived in the country.

As it would be a new current/credit account, it would also report to the credit reference agencies, it will also help you build up your UK credit record and there is no harm in banking with more than one organisation in case one has system issues.  Oh, and the Premier Bank account also comes with free annual travel insurance which you may also find useful.

HSBC also have something called HSBC Jade  which sounds like a souped up version of Premier and requires a more substantial relationship with HSBC - you might be able to qualify given your post - but perhaps start with Premier.and see if it suits you.

I do hope you update this thread with whatever you do and how it goes as that may benefit others in future