First Time Credit Card Help

Grievy

Hello everyone.

I'm 21 and I'm looking to get my first credit card. Always avoided cards and loans through fear of racking up debt like a lot of my mates. About 12 months ago I tried getting a loan for a new car but got turned down everywhere so my Dad eventually took the loan in his name and I'm paying the repayments to him.

However I am now at the point where I want to get myself a credit card just for those moments when I need a bit of cash and it isn't there. Had a couple of problems with my car recently and ended up having to borrow money off parents as I have no card to put it on until pay day.

On CreditExpert.co.uk my credit rating is 867 yet I have still been turned down for a few credit cards in the past 3 months.

Can anybody tell me why or possibly reccomend a credit card that is more likely to accept me?

I can't understand how all my mates have credit cards which they rack up stupid debts on (one mate is 22 and owes almost £20,000!!) and I can't even get one just to help with the essentials when I need them.

Astraeus

That's a credit score, not your credit rating. A credit rating is the entire document that you're presented with on CreditExpert and, whilst banks won't assign you a numerical score, they'll judge your application based on the data available to them on that page. Most people on here agree that the score (867) is useless in determining the likelihood of getting credit.

Volcane

Most people will recommend one of the sub prime cards as a good starter :

Aqua
Vanquish
Barclaycard Initial
Capital One Classic

I would personally recommend the Capital One Classic as they will give you a credit limit increase on the 4th month if you behave yourself with it.

seasidepom

A friend of mine who worked in banking for years once told me that it is important what you put down as your accommodation. "Furnished flat" doesn't seem to be liked, nor does "other". "Other" would be the option I presume you would have to choose if you are living with parents and so not a home owner/renter. Don't know why either of these should ring warning bells, but if you're ticking either of these, it may be contributing to your problem. Hope you get a card soon.

NickX

Grievy wrote: »

I can't understand how all my mates have credit cards which they rack up stupid debts on (one mate is 22 and owes almost £20,000!!) and I can't even get one just to help with the essentials when I need them.

I think the answer to this is that you have no history of credit for the companies to judge you on.

In fact having no history can count against you more than a slightly patchy history. The main stream credit card companies look for evidence of managing debt responsibly before agreeing to provide a facility. I know its a catch-22 but because you haven't had a credit card before it is counting against you.

Your mate with £20k of debt obviously has some history and provided he makes his minimum repayments then he appears to be managing his debt well to the card providers. His credit limits have probably increased steadily since he started using cards.

In your case, you need to get on the ladder - so it is a good move to ask for a card from your regular Bank, or one of the sub-prime providers such as Vanquis and Aqua.

Once you have managed your first card well for over 6 months, then you will be able to apply for more mainstream cards and get accepted.

Grievy

On the subject of my housing. Myself and my Dad co-rent the place and both our names on the letting agreement so I've always just put myself as Unfurnished Rent rather than living with parents.

Will have a look at some of the reccomended cards now.

dhassen

I've been renting (furnished) for years and never had any major problems....

skyrider007

Volcane wrote: »

Most people will recommend one of the sub prime cards as a good starter :
I would personally recommend the Capital One Classic as they will give you a credit limit increase on the 4th month if you behave yourself with it.

And interest rate reduction as well :j