Tiny income - can't get started

Moneysavingbassett

Hi,

I have a very small income as I'm living off savings. I'm 58. I wanted to get a credit card but I have zero chance to get one from any of the providers.

I'd like to improve this but the advice I've seen suggests you need a credit card to being improving your record.

Is there anything I can do?

Brie

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get one of those cards meant for building a credit record - Aqua, Vanquis etc - even if it only gives you a £100 limit.  use it every month even if for just one purchase and pay off in full.  In 6 months see if you can increase the amount or if another more mainstream card is available.  

Don't apply for Barclaycard - they won't be interested in anyone with a low income.

CliveOfIndia

As above, look at one of the credit-builder cards.

Is there a specific reason why you want a credit card?  They can be a useful tool and offer a certain amount of protection for some purchases.  But do you actually have a specific need for one?  Or are you wanting one purely to start building a credit history?

Credit cards can be very useful if managed correctly, but there's no real need to get one just for the sake of it, unless you can make use of the benefits they offer.

theoretica

Could be worth asking the bank you have your current account with - they will have access to more data about how you handle your finances than other places.

Yorkie006

@Moneysavingbassett Why do you want a credit card? To you want to use it for shopping or do you just want it to improve your credit history? If it's the latter, maybe getting an overdraft with the bank you have a current account with may be an option. Obviously, ODs are expensive way of borrowing but if you don't use it, it will improve your credit worthiness (because it will show that you can manage your finance and don't rely on credit for day to day expenses). Even a relatively low OD limit will help you in the long run.

comeandgo

Why do you have zero chance?  Is it because you have very little income?  I’d suggest you ask whichever bank you use for their credit card.  It can be difficult to get a credit card if you don’t have a certain amount of income, regardless of sav8ngs

comeandgo

Why do you have zero chance?  Is it because you have very little income?  I’d suggest you ask whichever bank you use for their credit card.  It can be difficult to get a credit card if you don’t have a certain amount of income, regardless of savings.

Moneysavingbassett

Thanks for your comments everyone.

I want a credit card because I'd like to build my credit rating. I'd also like a backup if for some reason my debit card (which I use for everything) is unavailable.

I've been hesistant to ask my building society for their credit card as I've heard asking then getting declined tanks your credit rating (not sure if that's true).

Similarly I've not applied for any builder card as I'm worried about being declined and making things worse.

Moneysavingbassett

Update: I just checked Aqua.

We're sorry that you’re not eligible for an Aqua card right now

MorningcoffeeIV

Moneysavingbassett said:

I've been hesistant to ask my building society for their credit card as I've heard asking then getting declined tanks your credit rating (not sure if that's true).

It depends which credit rating you mean.

It'll 'tank' the pretend rating from the CRAs.  But no one but you will ever know.  Lenders will just see a search and that wouldn't 'tank' anything.