Card Application Problem

LostAgain1

Hi . 

My existing card has come to the end of its % term so I'm looking for a new card with as long a %term as possible . My existing card has zero balance. The issue that I’ve been made redundant , however , I am a director of my own business, but never taken money out of that business because of reinvestment. So my self assessment numbers are zero .... but the card provider will only give me £260 credit limit (Barclays) even if I send in my self assessment (but I bet they won’t when they see its zero !!) My business makes about £35,000/year but how do I get a card ?? 

[Deleted User]

You don't.

If you're struggling, go to the DFW boards for advice on cutting costs.

LostAgain1

Thank you .
its not that I’m struggling , just that we all need a card to keep life running and be safe . But at £260 limit it’s as good as non . 

I’m wondering if because I’m the sole director of my own LTD business, if I am
in fact employed by it ..... 

mmmhhhh 

[Deleted User]

We all need cards, but it's the desire for a 0% one that raises the concern.

Your existing one presumably still has an acceptable limit.

floppydisk1

If you existing card has zero balance and zero % came to the end of its term, why exactly do you need or desire another 0% balance card ? Anyone using credit card responsibly - if needed - use one 0% card to clear any outstanding balance , after that x y z % is irrelevant as credit card meant to be paid in full ( or it quickly becomes high interest short term loan )  .... Keep the one you have and use it responsibly. I had same card for about 20 years, limit is high and I can't remember last time I have used anywhere close to 10 % of the limit  and I have no idea what APR % it has or had had, does not bother or interests me.

funkycredit

I am the sole director of my limited company but I'm an employee. So on applications I don't say self employed because I'm not. 

I technically get a salary monthly plus dividends. Regardless of whether I'm being paid I'm still an employee. 

I found when I was self employed, my choices were restricted so I checked with accountant and they clarified I'm an employee. 

So you can't be unemployed if you're a director of a limited company. Your occupation would be self employed or an employee. That depends on how you've registered with hmrc. My accountant deals with all that - I just send figures monthly. 

But maybe consider what your actual status is first. You're the boss so you decide. 

floppydisk1

My question is not about the technicalities of your employment / business status - my question is WHY do you insist on another 0 %  term card ?   Those cards are useful to pay off existing debt, not to take one out every time your current 0 % offer finishes - especially as your balance is zero as stated, there is no need to apply for another card at all.

LostAgain1

Thank you Funkycredit, that makes a lot of sense . 

Thank you floppydisk1, 
you are basically right , used responsibly normal
use doesn’t need a new card . 

I would prefer to finance some larger short term purchases, but will check the limit of my existing card.

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Thanks 

LostAgain1

Thanks zx81 too 👍

MinuteNoodles

LostAgain1 said:

I would prefer to finance some larger short term purchases, but will check the limit of my existing card.

———

Thanks 

But you have no income and now we're in recession there's no guarantee that the profit that was reinvested in your business is going to continue. I would hold off for a while and see how things pan out over the next 6 months with the economy. Now is not the time to be making large purchases that are not essential if your sole income is a relatively small profit from a business based on pre-covid accounts because the same factors that resulted in your redundancy will be affecting your business too.

adamp87

Yeah I think that’s it. If you’ve no income or little coming from your own business on paper (irrespective of its turnover) & being redundant there’s no income coming in to your household in the eyes of a creditor.

I don’t think people should be attacking you for wanting a 0% deal or reasons why to be fair.