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  • FIRST POST
    • Rocksolid
    • By Rocksolid 2nd Dec 19, 7:04 PM
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    Rocksolid
    New comer in UK and credit score funny story
    • #1
    • 2nd Dec 19, 7:04 PM
    New comer in UK and credit score funny story 2nd Dec 19 at 7:04 PM
    Hello,

    I'm in UK since less than a year.
    Based on experience elsewhere, for me here the credit score makes me laugh.

    So, they want me to take a loan to show them I'm able to repay, or get a credit card, well in both cases I can't because everybody asks 3 years of address history in UK.
    Then actually I've got a stupid credit card from one of the credit institutes, probably I made a mistake to send them my bank statement of a bank that I don't actually use, the balance was 70 pounds... So they gave me a card of 200, I laughed for 3 hours...
    Even if I ask a raise, they will maximum of 200 pounds, and we all know they won't do that because is too risky for me, if they base the calculation on the first statement provided, any cool idea?

    I've heard about to get multiple credit cards, this is the craziest I've seen online 😂, but if is real I may evaluate...

    So my credit score from credit monitor is 571/710...
    I know this is not reliable because it was the only platform to accept my short address history, for a proper credit history I should have 3 years address history, or that at least makes sense for a practical consideration for mortgages/loans etc...
    Should I request anyway to some real association like Halifax or Experian my real credit report?
    My application for the credit card could have been affected also from that...

    Objectives/summary of this thread:

    1) Improve the credit score
    2) Get a better credit card, ideally from high street banks, aprox 2-4k.
    3) Be sure if a real report could help me to understand what I need to do.
    4) I relocated 3 times already, not sure how much is affecting my credit score...
    5) I have 3 bank accounts, removing one could help?
    6) Should I really use less than the 30% of my actual cc balance? Which is 200 in total? It's silly 😂 Or should I keep using it? My understanding is if you use credit it means you need it, that is you are screwed... But in UK it looks like you have to use it anyway...

    I accept any suggestion 😊.
    Currently I can't apply for any kind of loan/mortgage for this reason...
Page 3
    • Terry Towelling
    • By Terry Towelling 5th Dec 19, 8:49 PM
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    Terry Towelling
    The point of using a credit card is not to massage your irrelevant credit score (or your credit history, although it will automatically create history as you go along). You use a credit card to your advantage and to help you - that's all.

    There are those who say you should not use more than 30% of your credit limit - I have no idea why but I'm sure someone will come along soon to explain why they believe this matters. All I can say is that I have never had a problem getting credit and I've never taken any notice of my utilisation percentage.

    Perhaps the 30% figure should only apply for those who carry a debt from month to month, and then only when the credit limit is more substantial than 200. To be honest, if I were a CC company, I'd view someone who only used 60 of their 200 limit each month (and then never managed to pay it all back) as a higher risk than someone who took the full 200 and cleared it each month - but, then, I'm not a CC company.

    The key for you is to create a credit history that shows how well you manage the credit that is at your disposal. Using a card and paying in full is more akin to deferring payment for purchases than using credit to make them; it's like using a Charge Card rather than a Credit Card. Paying in full shows you have the resources and the self-discipline to manage the product in the best way for you. When your history shows that you are not likely to pose a risk of defaulting, the limit will surely rise.

    You can, of course, spend more than your 200 credit limit each month but that would mean you'd need to be making extra payments to your account during the month to ensure you never exceeded your credit limit at any point.

    Some people report putting their cards into a credit-balance position (overcharging?) and seem to have no problem, but this is contrary to the T&Cs of most cards and not really recommended. Only make payments after transactions.
    • Rocksolid
    • By Rocksolid 5th Dec 19, 9:02 PM
    • 58 Posts
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    Rocksolid
    @CKhalvashi I also took the card from this site to support it, it's the only one to give you an overview with also 3 months of permanence in UK, I also get other packages.

    My current cc maximum will reach 1200, it's not from an high street bank, it's from a credit institute and because is to build credit, it's low in amount by default and do not talk about the interest rate 😂, that's why I've put the direct debit to repay...

    I wouldn't trust in this country to have a cc more than 2k, the reason is that no damn bank use the 2FA like the rest of EU, you login - - > granted, you pay - - > granted, maybe you receive a call for verification if their machine learning is working and correctly set up... I can't imagine with a credit card... What about notifications? Just push notifications in my bank, recently implemented, I'm amazed 😂😂😂.
    Still struggling to find a bank that has all this, I think it doesn't exist.

    Yes I save a lot every month, more than I spend, if I put them in savings looks better? Currently the money just resides in the account.

    @Ben8282 yes, for example if it's 200 cc I charge 50 on it, I need to verify if is possible, in my previous cc was allowed and without human limits. Basically I was almost always using my money and sometimes going down, just to see if something was triggered 😂🤑.
    I will check this card...
    • Terry Towelling
    • By Terry Towelling 5th Dec 19, 9:17 PM
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    Terry Towelling
    I wouldn't trust in this country to have a cc more than 2k, the reason is that no damn bank use the 2FA like the rest of EU, you login - - > granted, you pay - - > granted, maybe you receive a call for verification if their machine learning is working and correctly set up... I can't imagine with a credit card... What about notifications? Just push notifications in my bank, recently implemented, I'm amazed 😂😂😂.
    Originally posted by Rocksolid
    Are you yanking our collective chain here? Right from the start it has sounded like you might be, but now I'm sure you are.

    No fraudster should know your credit limit, so that would not be a factor in their decision to commit fraud on a card of yours. The way you write it sounds like you think you would have to pay for fraud on your card and that you'd be happy paying up to 2K of fraud - but no more than that. You don't have to pay for fraud on your card.
    • Ben8282
    • By Ben8282 5th Dec 19, 9:29 PM
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    Ben8282

    Perhaps the 30% figure should only apply for those who carry a debt from month to month, and then only when the credit limit is more substantial than 200. To be honest, if I were a CC company, I'd view someone who only used 60 of their 200 limit each month (and then never managed to pay it all back) as a higher risk than someone who took the full 200 and cleared it each month
    Originally posted by Terry Towelling
    I would agre with what is written above.
    I recall that back in the days when credit cards were new it was commonly accepted that the way to have your credit limit increased was to use the card up to it's credit limit (or exceed the credit limit; credit card issuers didn't seem to mind that in those days) and repay.

    The utilisation % is an interesting question.

    In the sense of an individual with an established credit profile and has several cards with high(ish) credit limits and who repays thier credit cards in full each month, it would be somewhat difficult to exceed the 30% figure anyway unless they had made an exceptionally large purchase the previous month. Even allowing for different lenders reporting practices and reporting dates in relation to statement dates, which I attempted to discuss in a thread a while ago but nobody seemed to able to grasp, that can cause a very significant reported balance variation depending on which card is used, my reported balances rarely exceed 10% overall. If my reported balances did start to exceed 30% on an ongoing basis it would mean that either I was spending a disproportionally high amount of money each month or I had disproportionally low credit limits in relation to my apparent spending power/needs.

    In the case of an individual who does not repay in full each month (stoozers included), the high utilisation % would probably indicate significant debt. There would also be the implication that the cardholder was desperate for credit and lacked the ability to easily repay. I don't know exactly how lenders determine credit limits but I think it would be fair to say that where an individual uses a large % of the credit limit that they have been granted, the question of their ability to repay would be called in to question when they next applied for credit. The utilisation % is not relevant except where a new application for credit is being made.

    In the case of very low limit cards, obviously it is necessary to use a high % of the credit limit in order for the card to be of any practical use. As has been rightly pointed out above, if an individual obtains a credit card with a limit of 200 and uses it almost up to the limit and repays in full each month, they are using the card for the purpose that it was intended. However, if such an individual uses the card up to it's limit and then makes only minimum payments and starts to pay interest on the 200, then what does that say about the ability of this individual to repay? Of course the issuers of high interest credit builder cards would probably jump at the chance of issuing a card to this type of customer but I don't imagine that they would get very far if they were to apply to Amex for a charge card.

    These things are all relative to the overall credit and financial position of the applicant and what sort of credit product they are applying for.
    Last edited by Ben8282; 06-12-2019 at 1:39 AM.
    • CKhalvashi
    • By CKhalvashi 5th Dec 19, 9:32 PM
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    CKhalvashi
    My current cc maximum will reach 1200, it's not from an high street bank, it's from a credit institute and because is to build credit, it's low in amount by default and do not talk about the interest rate 😂, that's why I've put the direct debit to repay...
    Originally posted by Rocksolid
    Who is this with?

    My oldest card isn't through a bank but a CC company. It doesn't have the highest limit across the cards I hold, but it has risen fairly.

    I wouldn't trust in this country to have a cc more than 2k, the reason is that no damn bank use the 2FA like the rest of EU, you login - - > granted, you pay - - > granted, maybe you receive a call for verification if their machine learning is working and correctly set up... I can't imagine with a credit card... What about notifications? Just push notifications in my bank, recently implemented, I'm amazed 😂😂😂.
    Still struggling to find a bank that has all this, I think it doesn't exist.

    Yes I save a lot every month, more than I spend, if I put them in savings looks better? Currently the money just resides in the account.

    @Ben8282 yes, for example if it's 200 cc I charge 50 on it, I need to verify if is possible, in my previous cc was allowed and without human limits. Basically I was almost always using my money and sometimes going down, just to see if something was triggered 😂🤑.
    I will check this card...
    My cards are fine for normal and a range of 'one off' spending.

    The only transaction that has been picked up on any card I hold this year was funnily enough about 4 to Belarusian Railways. This was done online about 2 days after I'd booked flights with the national airline. A quick phonecall and it was dealt with within about 30 seconds and the transaction was put back through successfully.

    I bank with one of the majors as a 'main' bank. I need to enter a login, password and then a 6 digit code that changes every 30 seconds to access my online banking or the app. As far as I'm aware, this is secure. So secure in fact that I can't always access it due to the code changing.

    With another bank I needed my card, PIN and a reader to access the app first time. Now I just need to enter a 6 digit PIN I've set up, as is the case with a credit card company. I'm sure I could probably set up SMS alerts however back in the real world, I really don't see the point.

    You are covered for any fraud unless the bank can prove you've been negligent.
    "I kada sanjamo san, nek bude hiljadu raznih boja" (L. Stamenkovic)

    Call me Remainer or Romaniac, but not Remoaner. It's insulting and I have the right to have my voice heard too.

    I can spell, my iPad can't.
    • Ben8282
    • By Ben8282 5th Dec 19, 9:34 PM
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    Ben8282
    @Ben8282 yes, for example if it's 200 cc I charge 50 on it, I need to verify if is possible, in my previous cc was allowed and without human limits. Basically I was almost always using my money and sometimes going down, just to see if something was triggered 😂🤑.
    I will check this card...
    Originally posted by Rocksolid
    What on earth are you talking about?
    • gozaimasu
    • By gozaimasu 5th Dec 19, 10:20 PM
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    gozaimasu
    In the case of an individual who does not repay in full each month (stoozers included), the high utilisation % would probably indicate significant debt. There would also be the implication that the cardholder was desperate for credit and lacked the ability to easily repay. I don't know exactly how lenders determine credit limits but I think it would be fair to say that where an individual uses a large % of the credit limit that they have been granted, the question of their ability to repay would be called in to question when they next applied for credit. The utilisation % is not relevant except where a new application for credit is being made.
    Originally posted by Ben8282

    In the case of stoozers, do you think it's right that they are treated in the same way as people who can't pay the debt back? Many stoozers have equivalent savings ready to pay off the debt in full. The only time savings is taken into account for any debt is offset mortgages, but such a mortgage would still be assessed ignoring any savings and only taking into account the debts on credit cards etc.
    Forum etiquette - Be nice to all moneysavers.
    • Rocksolid
    • By Rocksolid 6th Dec 19, 1:17 AM
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    Rocksolid
    @Terry Towelling great post, I didn't think about charging the card before the direct debit that would have cleared it fully and automatically.
    Because I can't be sure how the company sees it, for the moment I just spend the max I can.
    • Ben8282
    • By Ben8282 6th Dec 19, 1:35 AM
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    Ben8282
    In the case of stoozers, do you think it's right that they are treated in the same way as people who can't pay the debt back? Many stoozers have equivalent savings ready to pay off the debt in full. The only time savings is taken into account for any debt is offset mortgages, but such a mortgage would still be assessed ignoring any savings and only taking into account the debts on credit cards etc.
    Originally posted by gozaimasu
    I understand what you are saying. However, a potential lender has NO WAY of knowing this. There is absolutey no way to tell the difference between a big time stoozer and somebody heavily in debt. The new lender has no way of knowing that the stoozer actually has the money to repay the debt, besides which there is nothing to stop them spending the money/savings the very next day if they were so inclined.
    There appears to be a misconception on this forum that high balances are fine so long as they are at 0%. That is not correct. A balance is a balance and a debt is a debt. A person stoozing say 20,000 at 0% has 20,000 of credit card debt which could become interest bearing when the 0% period runs out until such time as they actually repay it.
    Last edited by Ben8282; 06-12-2019 at 1:43 AM.
    • gozaimasu
    • By gozaimasu 6th Dec 19, 2:44 AM
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    gozaimasu
    It's a shame that FIs can't introduce a way to include any cash savings. I was thinking specifically of mortgage providers looking at savings history. Is the person really likely to run off an immediately blow all their savings given they've saved regularly for x period, etc.
    Maybe it wouldn't work though, broker once told me that even if you paid off the CCs before getting the mortgage, an increasing number of mortgage providers are taking into account the fact that someone with long term CC debt (even at 0%) will usually always keep getting CC debt and that counts against them. Even if that debt is manageable, and has been manageable for a number of years.



    There appears to be a misconception on this forum that high balances are fine so long as they are at 0%. That is not correct.
    Originally posted by Ben8282
    High balances at 0% are fine (to a consumer) if they're manageable. They might not be "fine" to another lender because of the potential risk of not being manageable in the future.
    Forum etiquette - Be nice to all moneysavers.
    • Terry Towelling
    • By Terry Towelling 6th Dec 19, 2:48 PM
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    Terry Towelling
    @Terry Towelling great post, I didn't think about charging the card before the direct debit that would have cleared it fully and automatically.
    Because I can't be sure how the company sees it, for the moment I just spend the max I can.
    Originally posted by Rocksolid
    Well thanks for that (please don't think the deflection has worked though).

    You still haven't answered the question about what you did with the cards and bank accounts you had in other countries.

    You might also want to analyse what you have said about not wanting a credit limit exceeding 2K because of the risk of online fraud. Remember that credit on a credit card is not your money, so if someone uses it fraudulently, it is a pain, but at least it isn't your money.

    You have quite glibly told us all that you carry balances in your bank accounts of 9K to 12K. Do you have debit cards for those accounts? Don't you think it would be far worse if a fraudster were to commit debit card fraud against one of your pointlessly large bank balances where they can get at substantially more than 2K and it is actually your money they are taking?

    Just going back to something you said a while ago, as an Italian (allegedly), do you really consider yourself to be Central European, or were you just referring to time you have spent in central Europe?

    Keep yanking that chain - it's quite enjoyable (and that isn't a euphemism).
    • Rocksolid
    • By Rocksolid 6th Dec 19, 6:01 PM
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    Rocksolid
    With the previous cc I've done everything, bought whatever I had to buy in the month, never got charges a part the 1st time as a mistake withdrawing, probably 4 euros...
    I was charging multiple times the card even, important was do not get interests.

    2k don't send me in bankruptcy, that's only the reason.
    If this happens with a cc you should pay it ASAP, and they are not your money, well that's worst.
    There I had 4 days of claim of fraud and full money back, here 1 day in my bank (example) , if there is, it's a huge difference and seen that there is no damn notification, the only thing you can do is to check it every day, bank account included, a pain!!!
    In the previous cc I had also 2 months almost free interest, not only the first 2, also the followings.


    Forget about Italy, in Italy cc are a joke, most of them you have to pay back the same month or you finish in the record of people with debts...

    I disclosed the average as I don't care, this is what I have in UK in .
    As a credit Institut I've meant a non bank for my actual cc, call it as is due, but is not a bank, therefore sucks.
    • Rocksolid
    • By Rocksolid 6th Dec 19, 6:04 PM
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    Rocksolid
    Ben I'm saying that if you have a 1k cc and you put on it another 1k, it becomes 2k cc, yes with a transaction.
    If you go down 1k your balance is triggered in negative, I start to believe that in UK is not possible.
    • Ben8282
    • By Ben8282 6th Dec 19, 7:34 PM
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    Ben8282
    !
    In the previous cc I had also 2 months almost free interest, not only the first 2, also the followings.
    .
    Originally posted by Rocksolid
    Do you mean that you had almost 2 months (i.e. 56 days) interest free if you repaid in full on your previous card? If yes, then it is the same with UK issued cards.
    You would appear to be confusing this with a promotional 0% purchases offer for the first 2 months.
    Ben I'm saying that if you have a 1k cc and you put on it another 1k, it becomes 2k cc, yes with a transaction.
    If you go down 1k your balance is triggered in negative, I start to believe that in UK is not possible.
    Originally posted by Rocksolid
    Once again I can't follow you. I don't mean to appear disrespectful but your written English is very poor and I find it very dificult to understand you sometimes. Perhaps you should write your posts in Italian so we can tranbslate them oursevles?
    Last edited by Ben8282; 06-12-2019 at 7:54 PM.
    • Terry Towelling
    • By Terry Towelling 6th Dec 19, 8:12 PM
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    Terry Towelling
    Either we are not understanding each other, or one of us is being obtuse. Hopefully, it is the former.

    I not understand what you say about credit card fraud. Why you must check every day for fraud? - you thinking fraud happen to you all the time?

    Why you don't keep bank account and credit card from other countries?
    • Rocksolid
    • By Rocksolid 6th Dec 19, 10:54 PM
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    Rocksolid
    I didn't take attenction on what I was writing, always in hurry ��, sorry.

    I felt much more secure when I was receiving notifications about everything, and you could set up triggers based on rules...
    Here no bank does it, probably in a platinum account, I'm surprised a web server is too complex to handle.

    Basic story: I've done a payment in another PC which is not mine, in a different range of IP, it was enough to put the data and the transaction was executed, more than 1k...
    This is not normal, and it happens all the time, and not only to me.

    For the overcharge, basically I mean that my cc was overchargable, is it clear?
    Then if you go down your credit balance/allowance you run into interests, but not if you pay obviously.
    One good point of this is that you can use that part of the credit you have in a bigger transaction.
    Imagine to pay 3k of iPhone, but 2k are yours and 1k is from the bank.
    WWithout thay kind of credi card you wouldn't be able to do it, or you would if you transfer the balance but this is always paid with a lot of interests, at least in my cc was almost forbidden ��, for security reasons. Here I see many offers for balance transfer but look the charges, are different, but maybe not all them.


    Anyway we are going out of discussion, even if for me is very interesting, not sure if someone will close the thread.
    • Terry Towelling
    • By Terry Towelling 7th Dec 19, 3:29 PM
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    Terry Towelling
    Anyway we are going out of discussion, even if for me is very interesting, not sure if someone will close the thread.
    Originally posted by Rocksolid

    Let's hope so!
    • Rocksolid
    • By Rocksolid 8th Dec 19, 1:42 AM
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    Rocksolid
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