Stuck Trying to Get a Credit Card/ Phone Contract
Emily_Joy
Posts: 1,235 Forumite
A friend of mine asked me to help her to improve her credit file, so that she will be have access to credit products.
I have never ever had problems getting a credit card and never had a loan so I am turning here for help.
I have friend's Experian credit report in front of me.
It shows a bank account with a major bank of 100 years history. There is a £1000 arranged overdraft, none of which is used. It has been used once 6 month ago - the account was overdrawn by £150 and paid in full next month.
It shows a loan A (£16000) taken in 2012 and paid dutifully till 2013, when the life got hard and then a sequence of late payments for a year. This account was closed in 2014. The balance a month before closure was about £9000.
It shows a loan B (£8000) taken the same day the loan A was closed. This loan is still active and dutifully paid - no late payments since 2014.
Both loans A and B are from the same bank as the main (and only) current account.
There is another loan C from a minor loan provider for an odd amount under £100 and the friend says she took it less than a year ago in hope to improve her credit file. The loan C is dutifully paid - outstanding amount is under £20.
There is also an old credit card taken in 2012 and closed in 2013 with the smallest credit limit possible. There are 2 missing payment for the amount under £5. She says she just forgot. (I presume it went to the statement a few days after she checked it, and it's easy to forget about something under £5.)
What would be the best approach?
I was going to suggest:
(1) pay the loan C off immediately
(2) pay the loan B off as quickly as possible
(3) apply for a Tesco bad credit rating credit card
Is there anything we need to check first?
The major bank says they can't offer a credit card. She was also refused a phone contract...
UPDATE 08th April: accepted for Barclays Initial when applied via MSE.
I have never ever had problems getting a credit card and never had a loan so I am turning here for help.
I have friend's Experian credit report in front of me.
It shows a bank account with a major bank of 100 years history. There is a £1000 arranged overdraft, none of which is used. It has been used once 6 month ago - the account was overdrawn by £150 and paid in full next month.
It shows a loan A (£16000) taken in 2012 and paid dutifully till 2013, when the life got hard and then a sequence of late payments for a year. This account was closed in 2014. The balance a month before closure was about £9000.
It shows a loan B (£8000) taken the same day the loan A was closed. This loan is still active and dutifully paid - no late payments since 2014.
Both loans A and B are from the same bank as the main (and only) current account.
There is another loan C from a minor loan provider for an odd amount under £100 and the friend says she took it less than a year ago in hope to improve her credit file. The loan C is dutifully paid - outstanding amount is under £20.
There is also an old credit card taken in 2012 and closed in 2013 with the smallest credit limit possible. There are 2 missing payment for the amount under £5. She says she just forgot. (I presume it went to the statement a few days after she checked it, and it's easy to forget about something under £5.)
What would be the best approach?
I was going to suggest:
(1) pay the loan C off immediately
(2) pay the loan B off as quickly as possible
(3) apply for a Tesco bad credit rating credit card
Is there anything we need to check first?
The major bank says they can't offer a credit card. She was also refused a phone contract...
UPDATE 08th April: accepted for Barclays Initial when applied via MSE.
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Comments
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I assume that it is the bank which has existed for over 100 years rather than the account.
I am guessing that loan C is a cashplus credit builder thing or similar. Pay it or leave it. It will make no difference.
It is a bit odd having the late payments for under £5 on the credit card. As £5 is usually the lowest minimum payment, she must have used the card for only a very small transaction during the statement period and then forgot, Twice. This hardly shows responsible behaviour. perhaps when she gets another credit card she should set up a direct debit to avoid such a thing happening again.
From what you say, there are no defaults and only late payments from before 2014 with everything paid on time since. This shouldn't really be preventing her from getting a mobile phone contract although perhaps the problem is that she wants the very best and most expensive phone with high monthly payments. Perhaps in the first instance she should try for a SIM only contract which she should be able to get.
Suggest you use an eligibility checker to see what sort of results she gets before applying for another card.0 -
Quite possible, although I am quite happy with the bank myself...I assume that it is the bank which has existed for over 100 years rather than the account.
You are exactly right.I am guessing that loan C is a cashplus credit builder thing or similar.
I have no clue either. Is there a way we can find this out? I am also thinking there might have been a PPI on this credit card.It is a bit odd having the late payments for under £5 on the credit card. As £5 is usually the lowest minimum payment, she must have used the card for only a very small transaction during the statement period and then forgot, twice.
Yes, definitely.Perhaps when she gets another credit card she should set up a direct debit to avoid such a thing happening again.
Ok. Will look into it. Although I am suspecting she might be talked into getting something which is a surplus to requirements.From what you say, there are no defaults and only late payments from before 2014 with everything paid on time since. This shouldn't really be preventing her from getting a mobile phone contract although perhaps the problem is that she wants the very best and most expensive phone with high monthly payments. Perhaps in the first instance she should try for a SIM only contract which she should be able to get.
Would the one from MSE credit club suffice or do you have one to recommend?Suggest you use an eligibility checker to see what sort of results she gets before applying for another card.0 -
Whether you use the eligibility checker from mse club, Noddle or clearscore shouldnt matter I wouldn't have thought.
Its easier if you use mse credit club if thats who you or she has signed upto.0 -
She should check the other two CRAs through clearscore and noddle. They may have other information.
I presume loan B was taken to replace loan A? What was the benefit of that, to extend the timescale? What is the balance / APR on it?
Is she on the electoral roll?
What is her income? If on a low income affordability might be an issue.
Has she a stable job / address?
Don't use the overdraft.
A poor credit credit card would be an idea. Stay well within the credit limit, use it for everyday shopping she would buy anyway, and clear it in full every month after the statement and before the due date.0 -
The bank's advisor suggested to bring the report from Experian to discuss it...She should check the other two CRAs through clearscore and noddle. They may have other information.
We will get another two if this doesn't get us anywhere.
Yes.I presume loan B was taken to replace loan A? What was the benefit of that, to extend the timescale?
The balance is just under £4500. I don't know APR - I haven't seen this paperwork.What is the balance / APR on it?
Yes.Is she on the electoral roll?
About £25000/year before tax.What is her income? If on a low income affordability might be an issue.
She has been on the same job/at the same address for a couple of years now.Has she a stable job / address?
Ok, thank you.Don't use the overdraft.
Thank you, will try that!A poor credit credit card would be an idea. Stay well within the credit limit, use it for everyday shopping she would buy anyway, and clear it in full every month after the statement and before the due date.0 -
Just a quick update: due to work commitments, the things are moving somewhat slowly.
We checked Experian via MSE for cards available and my friend decided to take out Barclay's initial. It looks to me like the interest is pretty dire and the limit is a bit uninteresting, but I am assuming that's a good starting point. She didn't want an Aqua Card, and the Barclay's initial had a better approval chance.
We have also submitted a PPI enquiry to the loans' and old credit card provider (the bank). I am wondering if anybody knows what is time line here? I am assuming the bank has to reply within a couple of weeks?0 -
Just a quick update: due to work commitments, the things are moving somewhat slowly.
We checked Experian via MSE for cards available and my friend decided to take out Barclay's initial. It looks to me like the interest is pretty dire and the limit is a bit uninteresting, but I am assuming that's a good starting point. She didn't want an Aqua Card, and the Barclay's initial had a better approval chance.
We have also submitted a PPI enquiry to the loans' and old credit card provider (the bank). I am wondering if anybody knows what is time line here? I am assuming the bank has to reply within a couple of weeks?
Interest rates on cards for credit building are irrelevant as she will be spending and paying off in full every month to show good credit management.
Banks have 8 weeks to respond to PPI complaints though not sure about enquiries as to whether she had it or not, could always just ring up and see how it's going. That said if she had PPI it will be on all her statements where she had a balance at the end of the month so easy enough to check, if no statements, wait for them to respond. Simply having PPI is not a problem if it would have covered her, indeed, she could have claimed on the policy in her problem period0 -
Banks have 8 weeks to respond to PPI complaints though not sure about enquiries as to whether she had it or not, could always just ring up and see how it's going. That said if she had PPI it will be on all her statements where she had a balance at the end of the month so easy enough to check, if no statements, wait for them to respond. Simply having PPI is not a problem if it would have covered her, indeed, she could have claimed on the policy in her problem period
Well, the credit card was taken in 2012 and closed in 2013, so I doubt she has kept any paper-based statements. However I am hoping the bank should have the details still.
As for the loan - I am not familiar with "default" options. Should the statements be coming through the post? Should they be available in the Internet Banking? Again, the loan was first taken out in 2012, and I am afraid she has no paperwork which dates back to these days.
Regarding PPI cover - where can we get the details?0 -
Well, the credit card was taken in 2012 and closed in 2013, so I doubt she has kept any paper-based statements. However I am hoping the bank should have the details still.
As for the loan - I am not familiar with "default" options. Should the statements be coming through the post? Should they be available in the Internet Banking? Again, the loan was first taken out in 2012, and I am afraid she has no paperwork which dates back to these days.
Regarding PPI cover - where can we get the details?
Ring up the bank and ask, you don't need statements, if the account was active within the last 6 years they should still have records. You would of course have to construct a complaint about why any PPI would be miss-sold
That said, the card being closed in 2013 will trigger the 3 year time bar (from being aware there was a reason to complain - which closing the account counts as) and being opened in 2012 may have also passed the 6 year time bar (6 years from when it was taken out) - if both are satisfied then the complaint can be dismissed without any option to go to the ombudsman so finding the dates is key0 -
Ring up the bank and ask, you don't need statements, if the account was active within the last 6 years they should still have records. You would of course have to construct a complaint about why any PPI would be miss-sold
That said, the card being closed in 2013 will trigger the 3 year time bar (from being aware there was a reason to complain - which closing the account counts as) and being opened in 2012 may have also passed the 6 year time bar (6 years from when it was taken out) - if both are satisfied then the complaint can be dismissed without any option to go to the ombudsman so finding the dates is key
Thank you for your reply - based on the credit report I believe we have missed deadline for any PPI complains regarding the credit card. I am guessing the missed payment of 2GBP will disappear from the records in a year time anyway so there is no need to worry about it...
Does the same time frame apply to loans?0
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