Credit Card - HELP!

marks77

Hi
I would like to boost my credit rating by getting a CC to pay for my shopping monthly while using the cash to pay off the balance when the statement arrives. I've got a loan with Lloyds TSB which is up to date, no missed payments. A mobile phone contract with Orange, 9 months in £60 per month, paid on time each month. I'm registered on Electoral Role. No defaults, no other missed payments and no CCJ's. The other thing on my file from 2006 is a paid Lloyds TSB loan which was paid in full but had 4 missed payments on it.
I know the credit scoring is just a guide but Equifax shows me at 750 and Experian at 600. I thought I'd apply with Capital One to get their "Classic" card as I thought with my credit rating I'd be a pretty confident of getting it - GOT TURNED DOWN!

So, now I'm a bit stuck as to what to do. I want to be sensible and increase my credit worthiness by using low limit CC's and paying them in full on time etc, but don't know what to do? I could get a store card but wouldn't know which one and secondly probably I would just buy things for the sake of it so that I had something to pay off at the end of the month. This is why I wanted to use a CC to pay for my shopping because it is something that I need each week and each month!!

What do you reckon guys? Help appreciated.

Moderators/experts: If you feel this enquiry is best put somewhere else, then pleas advise. Thanks

HeadInSand_2

If you pay it off every month, what about a high APR card like Vanquis? They're intended for high risk customers looking to build a credit history.
You're likely to get one, but if you miss a payment you'll get spanked for interest.

marks77

I've just spoken to a broker who gave me a bit of advice about my credit file - very helpful actually!

Basically, I've only got two open credit agreements. 1 Lloyds TSB loan = £29 a month and 1 Mobile contract totalling about £50 per month. He says lenders don't really count mobile contracts when devising a score for credit. He said that I haven't got enough credit history to enable lenders to give me a score as my oldest agreement is only 9 months old. How do I get more agreements so I can show lenders that I shouldn't be a risk?

ShelfStacker_3

Like HeadInSand suggested, try Vanquis (http://www.vanquis.co.uk). Their card has an astonishingly high APR (mine is 45%!), but if you make small purchases every month and pay the card off in full, you'll pay no interest and your credit rating will increase.

Lenders won't care that it's Vanquis, they'll just see the stream of on-time payments and consider it a factor in your favour.

marks77

Thanks Head and Stacker - Just out of interest, what was your file like when you got accepted on Vanquis? D'ya think my credit situation will allow me to be accepted? Also, I see you've got a HSBC CC. Were you able to be accepted as a result of building your credit sensibly using these high APR cards?

YorkshireBoy

ShelfStacker wrote: »

Lenders won't care that it's Vanquis...

They won't know it's Vanquis because the lenders name is not disclosed to them on the credit search.

Since the Capital One Classic card is (roughly) on a par with the likes of Vanquis and Aqua etc, I'd be fairly worried if I was rejected by them. Maybe there's some anomoly and an appeal, with some supplementary information, may get the OP accepted?


EDIT: OP, if you bank with LTSB (as well as having a loan with them), have you approached them for a credit card. After all, no-one knows your financial standing like your bank.

beer_tins

Hmm, vanquis might be your best bet. Just don't go applying all over the place, it looks bad. Yorkshireboy makes a good point about approaching your bank, I got a Barclaycard as my first cc after having a great account with Barclays for years but having absolutely no credit history. The thing that may count against you there is the loan with them that you missed payments on. That's assuming you bank with LTSB?

ShelfStacker_3

marks77 wrote: »

Thanks Head and Stacker - Just out of interest, what was your file like when you got accepted on Vanquis? D'ya think my credit situation will allow me to be accepted? Also, I see you've got a HSBC CC. Were you able to be accepted as a result of building your credit sensibly using these high APR cards?

My file had a Capital One CC on it which had been open for about 3 months, and little else. Vanquis generally cater to the less creditworthy (hence the APR), so you've got a good chance of being accepted anyway.

The HSBC card was partly through the three subprime cards, but as I'm a customer of theirs (for all of two months) and the account is managed well they rated me higher. Not yet got the actual card, but should have that within a couple of weeks...

beinerts is entirely correct, by the way. Don't, whatever you do, use the shotgun approach of just applying for everything and seeing if you get accepted, because lenders see it as a sign of financial desperation or fraud. I did it and wrecked my credit file in the process.