credit checks

buildersdaughter

Hello, hope this is the correct place. I don't post often.

I have had a John Lewis card with my husband, for over 30 years, always repaid in full every month. It has a £10k limit.
I have had a Co-op card for a similar amount of time, always repaid in full. It has a £3k limit. 
With JL stopping, and that as I get older, I'd rather cut down the number of cards, I'd like to up my Co-op limit. I rarely get near it, but I might on holidays or with a big purchase. 
Co-op have refused, after a credit check. Not a huge problem, I keep a careful track anyway, and can use my debit card.
But I wondered why. I run the accounts with my husband and have done for 50 years, so know his finances are the same as mine.
We have no mortgage, no loans and no debts. I've never checked my credit score, and although it looks quite easy on MSE, I feel wary now - might there be an issue with doing another check when the Co-op have just done one?

Any information gratefully received!

powerful_Rogue

buildersdaughter said:

Hello, hope this is the correct place. I don't post often.

I have had a John Lewis card with my husband, for over 30 years, always repaid in full every month. It has a £10k limit.
I have had a Co-op card for a similar amount of time, always repaid in full. It has a £3k limit. 
With JL stopping, and that as I get older, I'd rather cut down the number of cards, I'd like to up my Co-op limit. I rarely get near it, but I might on holidays or with a big purchase. 
Co-op have refused, after a credit check. Not a huge problem, I keep a careful track anyway, and can use my debit card.
But I wondered why. I run the accounts with my husband and have done for 50 years, so know his finances are the same as mine.
We have no mortgage, no loans and no debts. I've never checked my credit score, and although it looks quite easy on MSE, I feel wary now - might there be an issue with doing another check when the Co-op have just done one?

Any information gratefully received!

Therein probably lies your problem, you have very little credit history.

Ignore the score from the credit  agencies, it means nothing and is only seen by you and them. Each lender uses their very own system to work out whether you are eligble or not.

Checking your credit history is free and worth doing and has no impact on your report, as they use soft searches.

[Deleted User]

Nobody sees your credit score but you, it's a gimmick like a horoscope. One or two applications is no bad thing and you should always have 2 credit cards anyway in case one is unavailable ideally a mastercard and a visa or AmEx. If you have decent income and can benefit from it, why not look at say a supermarket card e.g. Tesco or Sainsbury's for the points.

If you are retired though, it might spook some lenders depending on your guaranteed income so might be worth talking on sites like SAGA as well for people who have experience in your situation. 

Check your credit record on Credit Karma, Clear Score and MSE Credit Club for free and check there is nothing untoward on them before you do another application. Co-Op may simply not like giving bigger limits.

buildersdaughter

Thank you!
I usually meander on the Old Style board, and that is how we live, using mostly independent shops and markets, and the Co-op occasionally. Although we have a decent income, you may be right about the Co-op (from which I do get points, and it is the only supermarket I use, normally).
I liked that the market traders began to take cards, but it has meant that more goes on than it used to!

Thank you for pointing out that I can do a credit check without causing a problem, and for the SAGA suggestion.

Yes, I liked having 2 cards, and as JLP was Mastercard & Co-op is Visa, it worked well.

Am now feeling my age!

MalMonroe

buildersdaughter said:

Thank you!
I usually meander on the Old Style board, and that is how we live, using mostly independent shops and markets, and the Co-op occasionally. Although we have a decent income, you may be right about the Co-op (from which I do get points, and it is the only supermarket I use, normally).
I liked that the market traders began to take cards, but it has meant that more goes on than it used to!

Thank you for pointing out that I can do a credit check without causing a problem, and for the SAGA suggestion.

Yes, I liked having 2 cards, and as JLP was Mastercard & Co-op is Visa, it worked well.

Am now feeling my age!

Please do not start to feel your age! I retired at 60 - 12 years ago. During that time I've had some real lows and highs with finances. I'm now on a minor high (which would not impress many people) BUT I did have a DRO in 2013 and that really muddied my finances for a period of just over six years. It's been a very steep learning curve. I have now recovered to such an extent that I have been allowed to have three credit cards (Virgin, Sainsbury's and Tesco) with a combined credit limit of £9,000 and a mix of Visa and Mastercard. During the DRO I had to have a 'basic' current account but now have a standard one. I wasn't allowed an overdraft during DRO and I'm pleased to say that I don't need one - or want one - now.

My age has never been a barrier, nor has it ever spooked any lenders - and nor should it. What did spook them was my credit history and report. Although it was very scary at the time, I learned a lot by having a DRO and I'm now able to manage my income sensibly. It isn't large or spectacular at all, although I am grateful to have a couple of private pensions as well as state pension. 

If there's a particular credit card you would like to apply for, you can always do a soft search on their own website, rather than via a credit report agency, before committing to anything.  

I started using my credit cards for regular purchases like groceries and setting direct debits to clear the balances in full when the payment day arrives. I have my banking app on my phone and check it regularly. I really had to smarten up my act because at one time I had absolutely no idea what my bank account was doing, it was almost as if it had nothing to do with me. But creditors like to know that you have the means and the ability to clear all your debt. Now 'reformed', I hate having any debt, even if it's on a 0% transfer balance card (which I'm offered now on a regular basis) or similar because although I won't pay any interest on the borrowing, it's an indication to lenders that I'm unable to clear the balance. 

With Co-op though, I had a basic current account with them all through my DRO and a few months after it ended I applied for a standard current account with them but they would not let me have one. Even though by that time I'd been with them for over six years. They wouldn't give me any explanation. So I applied elsewhere and was accepted. I think they can be a little choosy, which of course is their right but I wouldn't be too put off by them. 

I hope that this has been helpful in some way. If not, please ignore, apart from the part where I say that age is no barrier!     

buildersdaughter

Thank you MM, and interesting to see the 'other' side of the Co-op. I have been with them nearly all of my adult life. At one point, they were the most accessible bank as you could do free basic banking in Co-op stores and I lived in a village with a Co-op, but no bank.
I think that maybe they are a 'low risk' bank.
Thank you for the boost! And well done for re-building your finances.

[Deleted User]

MalMonroe said:

buildersdaughter said:

Thank you!
I usually meander on the Old Style board, and that is how we live, using mostly independent shops and markets, and the Co-op occasionally. Although we have a decent income, you may be right about the Co-op (from which I do get points, and it is the only supermarket I use, normally).
I liked that the market traders began to take cards, but it has meant that more goes on than it used to!

Thank you for pointing out that I can do a credit check without causing a problem, and for the SAGA suggestion.

Yes, I liked having 2 cards, and as JLP was Mastercard & Co-op is Visa, it worked well.

Am now feeling my age!

Please do not start to feel your age! I retired at 60 - 12 years ago. During that time I've had some real lows and highs with finances. I'm now on a minor high (which would not impress many people) BUT I did have a DRO in 2013 and that really muddied my finances for a period of just over six years. It's been a very steep learning curve. I have now recovered to such an extent that I have been allowed to have three credit cards (Virgin, Sainsbury's and Tesco) with a combined credit limit of £9,000 and a mix of Visa and Mastercard. During the DRO I had to have a 'basic' current account but now have a standard one. I wasn't allowed an overdraft during DRO and I'm pleased to say that I don't need one - or want one - now.

My age has never been a barrier, nor has it ever spooked any lenders - and nor should it. What did spook them was my credit history and report. Although it was very scary at the time, I learned a lot by having a DRO and I'm now able to manage my income sensibly. It isn't large or spectacular at all, although I am grateful to have a couple of private pensions as well as state pension. 

If there's a particular credit card you would like to apply for, you can always do a soft search on their own website, rather than via a credit report agency, before committing to anything.  

I started using my credit cards for regular purchases like groceries and setting direct debits to clear the balances in full when the payment day arrives. I have my banking app on my phone and check it regularly. I really had to smarten up my act because at one time I had absolutely no idea what my bank account was doing, it was almost as if it had nothing to do with me. But creditors like to know that you have the means and the ability to clear all your debt. Now 'reformed', I hate having any debt, even if it's on a 0% transfer balance card (which I'm offered now on a regular basis) or similar because although I won't pay any interest on the borrowing, it's an indication to lenders that I'm unable to clear the balance. 

With Co-op though, I had a basic current account with them all through my DRO and a few months after it ended I applied for a standard current account with them but they would not let me have one. Even though by that time I'd been with them for over six years. They wouldn't give me any explanation. So I applied elsewhere and was accepted. I think they can be a little choosy, which of course is their right but I wouldn't be too put off by them. 

I hope that this has been helpful in some way. If not, please ignore, apart from the part where I say that age is no barrier!     

As ever you read what you want into a post and reply based on some paranoia that every post about age is from someone who thinks old people are useless and should be ignored.

Nowhere in my comment did I say age would spook lenders, I said if you were retired it might do, some people retire in their 50s if they have the income to do, their age is not an issue, just their status. If you are retired it typically means a reduced income on a pension (or even savings/drawdown before the pension age) - that sort of reduction might well spook lenders, again nothing to do with age, everything to do with status.

Ironically your DRO after you retired completely kills your entire argument - as it is precisely the sort of thing lenders want to avoid, you retired and 3 years later had to have a debt plan because you couldn't afford your lifestyle. Again, the issue is the retired status and affected income, not the age.

DullGreyGuy

buildersdaughter said:

I have had a John Lewis card with my husband, for over 30 years, always repaid in full every month. It has a £10k limit.

There are no joint credit cards available in the UK market, a credit card account is always in a single name and can then add secondary cardholders to it. As only the account holder is liable for the debt it is only reported on their credit record.

So is the JL account yours or his?

The traditional approach was always the guy has the account and the wife is the secondary cardholder, this has often caused the wife issues later when they split up or she is widowed and suddenly finds she has little/no credit history because it was all in their partner's name. Banks get almost as scared of no history as they do at adverse history.

Standingstrong

There probably lies your problem, you have very little credit history.

don’t keep doing credit searches as it can ruin your score even more and then you wont end up with no CC.

just apply for one not 5 at a time.  And see what the outcome is. 

[Deleted User]

Standingstrong said:

There probably lies your problem, you have very little credit history.

don’t keep doing credit searches as it can ruin your score even more and then you wont end up with no CC.

just apply for one not 5 at a time.  And see what the outcome is. 

Scores are irrelevant, no lenders ever see them and they don't make decisions based on the gimmick score
2 card applications will not be a problem, doing more than that is a red flag