(Newbie) Applied for wrong type of credit card, unsure of how to proceed

PK_1

I have never had a credit card before, but I read on MSE about getting a "0% Balance Transfer" card to help reduce your debt, and I thought this was perect for me as I have a large overdraft and the bank don't want to help me in reducing it. 

I was pre-approved for a Fluid card, I got it in the post yesterday and now realise that I in fact needed a "0% Money Transfer" card, not a "0% Balance Transfer" card. I called fluid and they said they couldn't change the offer so I cancelled the card.

Will getting this card and cancelling it immediately affect my credit rating and chances of getting a 0% Money Transfer card? Also I tried the eligibility calculator for money transfer cards just now and most of them say 0% chance of getting accepted and one says 20%, is this because of the card I just took out and cancelled?

Do I need to wait a certain amount of time before I apply for the right card?

Sorry for all the questions as I said this is all very new to me.

[Deleted User]

The effects of a hard search will lessen after 3-6 months and probably more so if you don't have the card open.

You should give it a few months but keep in mind that the OD will be harming your credit rating (how the bank scores you, not the gimmick number/score). 

Ebe_Scrooge

As above, 1 hard search is not the end of the world.  But your lack of credit history combined with regular usage of overdraft will be viewed as a negative by many lenders.

You could look into applying for a regular credit-builder card and use it in order to start building up a credit history - this will mean you're more attractive to lenders in, say, a year's time.  But in the meantime you need to concentrate on paying down the overdraft rather than just shifting it to another vehicle.  If you head on over to the Debt-Free Wannabe board and post an SOA you'll receive loads of helpful advice.

PK_1

thanks folks will look into a credit-builder card. i am trying to reduce the overdraft but on a low income and always seem to be stuck at the bottom of it. i will look at the debt free wannabe section too

MorningcoffeeIV

If you'd kept the BT card, you could have combined it with any other card to do a cash withdrawal and immediately BT'd it.

It would have incurred various fees but may have been better than the OD costs.

PK_1

ahh alas i'd already cancelled it.

one question, if i got the fluid card and cancelled it right away will that itself have any effect (temporary or permanent) on my credit score, aside from the effect of having done the credit check? i didn't use any of the funds made available

[Deleted User]

PK_1 said:

ahh alas i'd already cancelled it.

one question, if i got the fluid card and cancelled it right away will that itself have any effect (temporary or permanent) on my credit score, aside from the effect of having done the credit check? i didn't use any of the funds made available

The gimmick credit "score" is not seen by lenders, 2 hard searches in quick succession, even after cancelling both isn't a great look either, I would hold back a while and work on the OD first - head to the debt free wannabe page first for advice on savings

PK_1

Deleted_User said:

PK_1 said:

ahh alas i'd already cancelled it.

one question, if i got the fluid card and cancelled it right away will that itself have any effect (temporary or permanent) on my credit score, aside from the effect of having done the credit check? i didn't use any of the funds made available

The gimmick credit "score" is not seen by lenders, 2 hard searches in quick succession, even after cancelling both isn't a great look either, I would hold back a while and work on the OD first - head to the debt free wannabe page first for advice on savings

I'm sorry I'm not very well versed in these things, not sure what you mean by the gimmick credit score. I will deffo take your advice though and hold off for a while and look into other ways to reduce my overdraft, thanks

Ebe_Scrooge

PK_1 said:

Deleted_User said:

I'm sorry I'm not very well versed in these things, not sure what you mean by the gimmick credit score.

It just means that the score dished out by the Credit Reference Agencies, and which you see when you view your file, is nothing more than a meaningless marketing gimmick.  It's not used, nor even seen, by any lender, and has no bearing on your ability or otherwise to obtain credit.

All a lender will look at is the raw data contained in your file - and, amongst other things, a series of hard searches in a short period of time can raise red flags with many lenders.

PK_1 said:

Deleted_User said:

I will deffo take your advice though and hold off for a while and look into other ways to reduce my overdraft, thanks

This is definitely the more pragmatic approach.  Even if you did manage to get a Money Transfer card and clear your overdraft, would you be able to clear the card debt before the 0% promotional offer expires?  If not, you'd start paying interest at the card's standard APR - which I'm willing to bet is even higher than what you're currently paying on your overdraft.  And you must never just assume you'll be able to transfer any remaining balance to another 0% card - especially with the way things are going in the world at the moment, I wouldn't be at all surprised if credit becomes ever-more difficult and expensive to obtain.

MalMonroe

Hi, I just wanted to say that if you are struggling with debt - you say you have a large overdraft and a small income, with no help from your bank (they should at least discuss your overdraft with you) - you could do worse than contact one of the free debt help agencies -

StepChange -  https://www.stepchange.org/hello.aspx
National Debtline  -  https://nationaldebtline.org/
Citizens Advice  -  https://www.citizensadvice.org.uk/

They give really good advice, with no obligation or judgement and you do not have to accept their advice if you don't feel it's appropriate for you.

One really good thing you should do (I've been in terrible debt and it really did help me) is to prepare a Statement of Account (SOA) - (also mentioned by Ebe_Scrooge, above) - a list of all your incomings and your outgoing so that you can see exactly what is happening with your money.

If you haven't done that already, I can assure you that it's really very helpful.

Another thing to do is to check your credit history reports with the three main Credit Reference Agencies -

Experian 
Equifax 
Transunion 

Just to make sure that all the information they have on you is correct. As others have said, the scores that you are given on your reports are never seen by anyone but you.

I do hope that's helpful in some small way. Many of us here have been in similar circumstances - and survived.