Do various levels of card require various levels of credit rating

Jules_ht

Apols if this has been asked, I have searched and not found.

I am going to apply for a Natwest CC. I have a current account with them.

My credit rating is OK, but not perfect. Based on my income etc I am fine to apply for a platinum card rather than the basic or in between card.

My question is this- do cc companies apply more strict credit scoring when you apply for a platinum or equivalent card with more benefits?

Or to put it another way, am I more likely to be accepted for the bog standard card?

Cheers,

Jules.

Clariman

Hi Jules

I don't know the answer, but here are my thoughts ....

A lot of the time, the different credit cards have little different apart from their colour, so those who have a platinum card feel a bit more special than those with a gold one etc. It is often little more than a marketing exercise.

That said, there can be different Ts & Cs. Platinum cards sometimes have lower interest rates and sometimes come with additional insurances so they can be worth it.

Whether or not they apply stricter credit scoring probably depends on the actual differences between the different cards. For example, if there is little or no difference in the cards, then the credit checks would be the same. However, if the Platinum card has a lower interest rate, then the check could be stricter because they want to mitigate against the risk (whereas a higher interest rate on a basic card compensates them for that additional risk).

Clariman

Jules_ht

Thanks Clariman. I see where you're coming from. Essentially there is no difference other than a rising income & age requirement. There are however some: £250,000 of Free Travel Accident Insurance, Travel Advice Helpline, Extended Warranty Insurance, Purchase Protection. All these are handy but not important.

My next question would be are you likely to be offered higher limits with the platinum over the gold over the basic?

Jules_ht

Well, I decided to go for the middle option (Gold), and they approved the application but said that based on the info I supplied they could only offer the basic!

So it seems that the trick with Natwest CCs is to go for the platinum card as they will then award you the highest they are prepared to. By doing this, you would not risk losing the additional cover the platinum affords, by applying for the gold. If that makes sense!

Lopo

Hmm....works both ways as it goes.

Have witnessed a friend apply for a basic card, only to be offered the platinum a few days later via post. Original application was actioned online, the letter came a few days after and required a signature as permission to switch the application to the platinum card.

Now the original application primary cardholder only met the criteria for the basic card, but did add their partner as the second card holder whose income trippled the income value that would have been stated otherwise on the app.

Fair dinkum! Benefits all round and massive limit to boot I was told - worked out very well as they proceeded to make big electrical purchases immediately and make use of the extended cover offered, paid it all off. then actioned a BIG stoozed BT -nice!

BTW - natwest/nwolb online banking really sucks "BIGtime" now!
"There is another way(!)"