Step into my shoes

Astraeus

This should be fun for you all - consider it a 'pet project'!

I'm a final year undergraduate student (about to move to a postgraduate law conversion course for two years) so I won't have a £15,000+ income until 2010 at the earliest. Bear that in mind when considering the following.

I currently have two interest-free overdrafts at their full complement (combined ~£2700) and I have just paid off a Halifax One card in full for the first time since December '06 (yey me!) and figured there's little point in spending much on it now because the interest-free period which first attracted me to the card is no longer valid. I'll keep it on because, so far as I understand from this site, it's best when applying for new credit to have some credit facility for them to 'mark' you against.

I work a fair bit and will continue to do so over the summer - I think it'll be about £100-£150 per week - so cash flow problems shouldn't be too much of an issue. I do, however, have some high-value purchases that I'm looking to make (SLR camera, PS3, MP3 player) which will total about £700. I don't want to buy these on an interest-bearing card because I'll get trapped (like I did with Halifax) into paying slightly more htan the minimum amount each month.

Come September, I should receive a maintenance grant of some sorts which would allow me to clear my credit card debt. With that in mind, am I best off going with one of the 12-month interest-free cards? It'd have to be the HSBC card because I already have the Halifax One card.

Also, are there any other interest-free cards besides HSBC? I've had a dormant account with them for several years and worry that it may mean they won't give me the card. My rating, though not checked, will be slightly below-average as I've had a few bounced Direct Debits on an overdraft but never a missed CC payment.

I appreciate your help.

Astraeus

And an aside to the main question here:

I have had the aforementioned card for 15 months and, whilst maintaining a credit balance on it for the vast majority of that, I have missed only one payment (I sent it threw on the day but it was processed a day later) and have just now paid off the entirety of the £1,100 credit limit. In applying for a new card, will this sort of management leave me stranded or is this the sort of lending that banks are looking for - paying a lot of interest on the account whilst also being able to pay off the debt entirely. And do they have access to how I have managed my account?

formerchamp

Can I refer you to Martin's pages on the subject:
http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#best

But just as an aside (and I'm not really being nasty): I hope, as a soon to be postgraduate student, you sent your payment through, if you threw it perhaps that would explain why it wasn't processed on the day.
Sorry, I couldn't resist temptation.:A

Astraeus

formerchamp wrote: »

Can I refer you to Martin's pages on the subject:
http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#best

But just as an aside (and I'm not really being nasty): I hope, as a soon to be postgraduate student, you sent your payment through, if you threw it perhaps that would explain why it wasn't processed on the day.
Sorry, I couldn't resist temptation.:A

You wouldn't believe it...I certainly can't. I actually re-read that post and CHANGED it from "through" to "threw". A day of typing up a dissertation and when it comes to 'relaxing' on MSE, I actively take it upon myself to spell things wrong! Regarding that payment though, would I be better applying online or going into a branch to discuss the circumstances with an advisor? I can't help but think my online application would like shambolic: ~£5,000 annual income, rented property/living with parents, part-time job (though I often work full-time hours) and that dreaded tag of "student".

It isn't actually 0% on balance transfers I require as I'll not be transferring any balance (now that I have none) so a 0% interest on purchases would be preferable. Thanks very much for the link anyway, that Virgin card looks promising for me but, then again, I think I'd really only need interest-free until August when I'm set for an interest windfall from my savings products elsewhere.

formerchamp

Hi Astraeus, I sympathise, right now I am supposed to be typing up a couple of thousand words but hey, it's only lunchtime!

Some companies do like students, they see your potential future earnings and read their potential future income. If you have a good relationship with your bank you could try going in to see them, but in this day and age no-one really knows you as an individual anymore (ooh, I sound so old and scynical, which, of course, I am) so I wouldn't worry too much about the online application, just be honest.

You could try registering with Quidco and running a credit check on yourself. Last time I looked Experian were paying something like £6.50 for a "free" trial period add in the amounts just about all the credit card companies offer for a successful application and you could be on to a good earner. If your credit rating doesn't look good, check out Martin's tips for improving your rating.

From what I have read recently on Martin's tips you might want to look at the Egg Money card, I can't find any links that will pay you cash back but they do pay 1% cashback on spending and it seems to be aimed at low-earners.

Good luck.

Moggles_2

Astraeus wrote: »

I have had the aforementioned card [Halifax] for 15 months and, whilst maintaining a credit balance on it for the vast majority of that, I have missed only one payment (I sent it through on the day but it was processed a day later) and have just now paid off the entirety of the £1,100 credit limit. In applying for a new card, will this sort of management leave me stranded or is this the sort of lending that banks are looking for - paying a lot of interest on the account whilst also being able to pay off the debt entirely. And do they have access to how I have managed my account?

The best way to gain an understanding of the info' HSBC and others have access to, would be to order your credit reports. After all, this is the data lenders search when you apply for a new credit card. (For help, see the *How to obtain credit reports* sticky.)

Those searching your file can tell that you have paid up on time each month and assess your credit - available and used - in relation to your annual income. What they cannot know is whether you routinely make minimum payments or settle your bills in full, as only the rolling balance(s) are shown.

Some lenders don't report payments that are only a day late to the credit reference agencies. Others (e.g. Barclaycard) always do. That said, whether your Halifax lapse is shown or not, a single late payment will not affect your credit rating

Astraeus

I've obtained my Experian credit report through CreditExpert.co.uk and it all looks peachy.

12 "0"s for my Halifax Credit Card (although it hasn't updated my balance as £0 - still displaying ~£850), 12 "0"s for my Halifax Current Account, 12 "0"s for my Natwest Current Account and a "U" for my dormant HSBC account with a settled overdraft. Furthermore, only one credit search in the past 12 months (the one I just did) so altogether is it likely that I'd be considered a Fair or Good credit rating?

Moggles_2

... it hasn't updated my balance as £0 - still displaying ~£850

This is normal. Most lenders update the credit reference agencies with this data once a month. Credit checks appear on your credit file more or less in realtime though. Anyone who searches your file subsequently will see each credit check until it drops off your file 12 months later. An increasing number of online and telephone credit card applications (those which give instant decisions and credit limits) are now real time applications too.

... only one credit search in the past 12 months (the one I just did)

This type of search is only visible to you. It's not seen by lenders.

Moggles_2

Is it likely that I'd be considered a fair or good credit rating?

You have a limited income. I would have a look at the Credit Rating articles on the main site, in particular, Martin's *Check and Improve your Credit Score* article, to make certain there are no other factors working against you, which can be put right before you submit an application

Moggles_2

For a comprehensive list of 0% purchases cards, see

http://www.stoozing.com/purchases.php

CannyJock

Having a dormant account with a bank doesn't count against you for credit cards. If nothing else you've already passed their ID checks.

HSBC purchase card is in the top 3 - why not re-activate your account, get the online login details and see if you have an offer of the 0% purchase card in your list of offers?

On the high value purchases side, you sure you want to splash out on these just now or budget for them and reward yourself with them? And obviously you've checked on eBay and scoured the cashback sites to see the best deal for buying these?