Anyone managed to get the 118118 money credit card?

jet01

Highland76 said:

Here's the $64 million question: if 118118 really don't want non-profitable customers, then surely logic would also suggest that mainstream CC issuers such as Halifax/HSBC/Barclaycard et al would be doing the same en-masse as well? Sub-prime lender or not, it costs money for CC providers to support customers who pay off their balances in full every month. Yet its fairly easy getting a CC with the more mainstream lenders providing you have a good credit history...

There is also the issue that card companies have to have the funds in place to be able to cover a certain percentage of their possible liabilities. For smaller providers I think that percentage is higher than for large banks because the risk of failure is much higher. Therefore, by taking on customers with better credit ratings who may want/expect higher credit limits then they would tie up a much larger proportion of their available funds to attract a smaller number of customers overall. Since card transaction fees were capped by the EU you need quite a large number of customers to achieve the critical mass and make money from people who pay off their balance in full when transaction fees are so low. The figures probably don’t stack up for 118118 to use their resources in this way, better to get an higher number of customers with lower credit limits and potentially higher profits per account from interest and sale of debt.   Barclaycard are one of the biggest providers in the world and a subsidiary of a major bank they have a very different business model and capital requirements to 118118 I imagine. It also probably helps that Barclaycard are one of the biggest merchant acquirers in the UK so they can make profit from both parties in those card transactions. 

[Deleted User]

I got one recently with a £1200 limit.
My credit record is by no means perfect, I went through a rough patch and have a few missed payments recorded. 

I’ve not missed a payment for about two and a half years but maybe those missed payments from a few years ago make me more eligible for this card..

Fingerbobs

Nothing bad on my credit files, no missed payments etc, but I do show a high amount of apparent debt thanks to Stoozing, and two hard searches within the last 6 months. Result: decline.

LordSomebody

I’m pre-approved apparently with a £1000 limit, but not interested and so won’t get one.

My history isn’t clean either.

[Deleted User]

Just had my limit increased from £250 to £1200. Only used the card 3 times since I got it last June and paid off each time.

DjangoUnchained

i have a bad credit history although have much improved. I got a 118118 credit card about a year ago. £500 limit. i only spend about £200 a month on it and clear it as soon as i get each statement so im not an ideal "interest paying" customer for them, I havnt been offered any limit increase, not that bothered anyway. I have a vanquis card with £1000 limit which i treat the same way. I got them to help build up and improve my credit history and to use for online ordering with the protection offered. 

[Deleted User]

DjangoUnchained said:

i have a bad credit history although have much improved. I got a 118118 credit card about a year ago. £500 limit. i only spend about £200 a month on it and clear it as soon as i get each statement so im not an ideal "interest paying" customer for them, I havnt been offered any limit increase, not that bothered anyway. I have a vanquis card with £1000 limit which i treat the same way. I got them to help build up and improve my credit history and to use for online ordering with the protection offered. 

They haven't got any interest out of me neither but still give me a £950 increase. Unless they are hoping with the increase I spend more without affording to pay it back at once and therefore start making interest from me.

[Deleted User]

Deleted_User said:

DjangoUnchained said:

i have a bad credit history although have much improved. I got a 118118 credit card about a year ago. £500 limit. i only spend about £200 a month on it and clear it as soon as i get each statement so im not an ideal "interest paying" customer for them, I havnt been offered any limit increase, not that bothered anyway. I have a vanquis card with £1000 limit which i treat the same way. I got them to help build up and improve my credit history and to use for online ordering with the protection offered. 

They haven't got any interest out of me neither but still give me a £950 increase. Unless they are hoping with the increase I spend more without affording to pay it back at once and therefore start making interest from me.

Guys, please, learn what credit card companies earn from. Yes they get interest from people who don't pay off in full but they get merchant fees every time you use it. Giving you more credit gives you more flexibility to spend thus earning more money for them from the fees. Even if you pay off in full, it benefits them if you spend more

WillPS

Deleted_User said:

Deleted_User said:

DjangoUnchained said:

i have a bad credit history although have much improved. I got a 118118 credit card about a year ago. £500 limit. i only spend about £200 a month on it and clear it as soon as i get each statement so im not an ideal "interest paying" customer for them, I havnt been offered any limit increase, not that bothered anyway. I have a vanquis card with £1000 limit which i treat the same way. I got them to help build up and improve my credit history and to use for online ordering with the protection offered. 

They haven't got any interest out of me neither but still give me a £950 increase. Unless they are hoping with the increase I spend more without affording to pay it back at once and therefore start making interest from me.

Guys, please, learn what credit card companies earn from. Yes they get interest from people who don't pay off in full but they get merchant fees every time you use it. Giving you more credit gives you more flexibility to spend thus earning more money for them from the fees. Even if you pay off in full, it benefits them if you spend more

The interchange cap is set at 0.3%, which does not all go to the card issuer.
Given the credit limits in play on these cards, this is not going to be the primary source of revenue for these cards.

[Deleted User]

WillPS said:

Deleted_User said:

Deleted_User said:

DjangoUnchained said:

i have a bad credit history although have much improved. I got a 118118 credit card about a year ago. £500 limit. i only spend about £200 a month on it and clear it as soon as i get each statement so im not an ideal "interest paying" customer for them, I havnt been offered any limit increase, not that bothered anyway. I have a vanquis card with £1000 limit which i treat the same way. I got them to help build up and improve my credit history and to use for online ordering with the protection offered. 

They haven't got any interest out of me neither but still give me a £950 increase. Unless they are hoping with the increase I spend more without affording to pay it back at once and therefore start making interest from me.

Guys, please, learn what credit card companies earn from. Yes they get interest from people who don't pay off in full but they get merchant fees every time you use it. Giving you more credit gives you more flexibility to spend thus earning more money for them from the fees. Even if you pay off in full, it benefits them if you spend more

The interchange cap is set at 0.3%, which does not all go to the card issuer.
Given the credit limits in play on these cards, this is not going to be the primary source of revenue for these cards.

1) The cap is not always applicable
2) The PSR only caps the interchange fee, not MSC which are 0.3-0.9%
Regardless, your post is irrelevant - the fact is that people who don't have debt on their card/don't pay interest still earn the provider money if they use the card. I never said it was the primary source.