Bit of advice on getting my first card

johanne

hi,

Im thinking of getting my first credit card to help build a credit rating.Id like some advice though.

Firstly... im 19 years old i have only been in my present (full-time) employment with Tesco for nearly 5 months earning approx £12,500 a year pre-tax.

Stupidly 4 months ago (pre-MSE days) i applied for a tesco credit card but got turned down due to my "circumstances not meeting the criteria" my credit score apparently didnt reach the level at which they would grant me a card.

So as suggested by them i applied to experian for my credit report the only "previous searches" are: the one by experian which isnt shown to lenders, the tesco credit card application and An "unrecorded enquiry" by a car insurance firm which was not for lending purposes and wont be shown to lenders. So looks like i have no credit history available except the rejection from tesco.

I applied over a year ago for a credit card from my bank (Natwest) but was turned down. At the time id only been in employment 4 months with my job at the time and only earned £4000. Which is probably why i got refused! Soon after however they DID give me a £500 overdraft which in over a year i have only gone into £167 at the highest and that was during a stint of long-term unemployment. I have also just opened an e-savings account with them and this month alone deposited £310 into it and have a monthly standing order of £40 to go into it from my current account. This should put me into my banks good books shouldnt it?

I therefore think applying to them again may be a good idea as they know my history is reasoably good BUT I am worried about applying for a new card as i only applied to tesco in march.. and if i didnt meet their criteria i might not meet another companies and i dont wanna tarnish my rating/report! :rolleyes:

Ive read on this site about Capital One classics or the Barclaycard initial. Im wondering if they are more likely to give me a card than my bank? I dont really wanna have to pay a £200 deposit though!! Id rather have that £200 in my ISA im going to be setting up soon or even my savings account.

I really am unsure what to do... my options seem to be: Apply to my bank and chance another refusal, Apply to barclay card initial and hope i meet their criteria as i believe they dont require a deposit? OR apply to capital one and be prepared to fork out for a deposit!

Very confusing! anyone got any advice for me?

Reaper

Occasional credit searches do nothing to harm your credit rating. It sounds as though you have made only a couple of applications spread over several months. That is not a problem.

I suggest you try your bank again. If that doesn't work then I think you need to get one of the starter cards mentioned. They are specificly intended to help you build up a credit rating. Hopefully as you don't have a bad rating, just a missing one, you might not have to pay too much of a deposit.

If both your bank and a starter card reject you stop there and leave it for a few months before trying again. Also make sure you are on the electoral role before applying for any cards or you stand very little chance of success.

daveboy

Tesco isn't the best card on the market - years ago in my pre-MSE days I had one and now I look back and wonder exactly why.

Reaper is correct, the best chance you have will be with your bank.

If you do manage to get one, don't do what I did when I was your age (I am now 24), and get carried away. I ended up with 4 cards at one point and struggled to pay them off. I know what that felt like and I'd hate for someone else to go through it too.

johanne

i am on the electoral role already (voted last 2 years too! )

i dont plan on using it to buy stuff on... just use it maybe one or two purchases a month and then pay it off in full.. just to get a good credit rating!I only looked at the tesco one as i was an employee and was looking at the extra clubcard points as sadly i spend most of my wages back into tescos pocket! lol

boogiemaster

Capital one may give you a decent limit! They gave me £200 but ive never had a credit card before.
You will get accepted by Capital one and may get a decent credit limit? if not its a start to building your credit score.
Im getting applications now for credit cards and ive only been with them for over two months?.
Give Capital one a ring build your history up a bit and then you will start getting offers through the post.

Ps apply for the classic card becouse nearly everyone gets it.

Fedz

I'd honestly apply for Barclaycard (Initial) - I found them a Godsend!

The problem with Capitalone (Classic) is you get a low credit limit, they might ask upto £200 deposit, they don't offer specials/promotions (not me anyway), the online control panel is always days behind.

Barclaycard (Initial) in my experience offer better/higher credit limits, don't ask for deposits, offer specials/promotions (even to new customers), the online control panel is always up-to-date and given what I've read on here Barclaycard will more readily up your account status where Capitalone (Classic) don't really.

johanne

just a little update... thought about it and applied monday (i think... know it was this week) for a barclaycard initial and have just had one dropped onto my doormat with a £520 limit!!

Helen_from_yorkshire

My son (18) is in the same position as u and, to help build up a credit rating, he applied for a store card whilst in the store, accepted, made a purchase and then paid it off. Hopefully by continuing to do this it will build up his own credit score, maybe you could do the same!