'Bad Credit' Credit Cards Article Discussion

clipit101 · 8 April 2010 at 10:07PM

ok, i have reccently been trying to address my credit score in an attempt to gradually improve it.

I am a 22yr old man i have never had an overdraft, loan, credit card or similar as i haven't ever had the need.

In those 22yrs i belive i have only ever had one line of credit in the form of a mobile phone contract. Unfortunately though i held this a good 2-3yrs ago which i decided to default on after the provider refused to pay out on the insurance i had been paying for (no reason given and even refused to provide me with a new sim card). This of course was a fabulous example of cutting my nose off despite my face.

I have checked up on my credit report with experian and everything seems to be in order and above board. I currently have a new phone contract, a well paid job ive had for 13 months and i never go overdrawn on my current account.

In an attempt to improve my credit rating i applied to my current account holder (A&L) for a £100 overdraft facility. I was flat out refused.

Have i missed something???? Is this just a prime example of the banks not wanting to risk a single pennny of....... ahh yes the tax payers money???

As a young adult trying desperately to achieve things in life (savings, mortgage etc) i feel like i have been absoluptly bent over, pummelled rather vigerously, had something anti-semitic whispered in my ear and then charged for the privillage of the experiance.

Anyway appoloise for the rant but needed it off my chest. My real point being should i risk applying for a credit improving card given my banks spectacular reaction to a basic £100 overdraft???

Advice and apathy very welcome.

ElkyElky · 8 April 2010 at 10:11PM

clipit101 wrote: »

ok, i have reccently been trying to address my credit score in an attempt to gradually improve it.

I am a 22yr old man i have never had an overdraft, loan, credit card or similar as i haven't ever had the need.

In those 22yrs i belive i have only ever had one line of credit in the form of a mobile phone contract. Unfortunately though i held this a good 2-3yrs ago which i decided to default on after the provider refused to pay out on the insurance i had been paying for (no reason given and even refused to provide me with a new sim card). This of course was a fabulous example of cutting my nose off despite my face.

I have checked up on my credit report with experian and everything seems to be in order and above board. I currently have a new phone contract, a well paid job ive had for 13 months and i never go overdrawn on my current account.

In an attempt to improve my credit rating i applied to my current account holder (A&L) for a £100 overdraft facility. I was flat out refused.

Have i missed something???? Is this just a prime example of the banks not wanting to risk a single pennny of....... ahh yes the tax payers money???

As a young adult trying desperately to achieve things in life (savings, mortgage etc) i feel like i have been absoluptly bent over, pummelled rather vigerously, had something anti-semitic whispered in my ear and then charged for the privillage of the experiance.

Anyway appoloise for the rant but needed it off my chest. My real point being should i risk applying for a credit improving card given my banks spectacular reaction to a basic £100 overdraft???

Advice and apathy very welcome.

Hi!

It's quite common to be declined for various credit facilities without having any previous credit history. Banks generally decline those without history simply because the banks consider those people risky. Without any sort of payment history, banks won't know how you'll behave with the credit given.

Normally we would suggest you try applying for a credit card with your own bank but given the circumstances with the overdraft, that may not be a good idea. Consider applying for a sub-prime credit card such as Vanquis or the Capital One classic. These cards are specifically aimed towards people with no or adverse credit history.

You'll have a better chance of being accepted for a sub-prime card. However, bear in mind, if you've applied for multiple credit facilities within a short space of time, that itself could have a damaging affect to your credit file.

clipit101 · 23 April 2010 at 7:44PM

Thanks for that Elky.

After all that i decided to apply for a capital one classic and try to get that credit rating built. Sure enough i have heard back and have been declined. Where the hell do i go from that?

pjread · 24 April 2010 at 8:36AM

clipit101 wrote: »

Thanks for that Elky.

After all that i decided to apply for a capital one classic and try to get that credit rating built. Sure enough i have heard back and have been declined. Where the hell do i go from that?

Vanquis is about the only card you might get if cap1 declined you, IMO.

are you on the electoral register?

Purplefairy · 2 May 2010 at 7:36PM

Hi

I've recently been applying for credit cards and I've applied for four over the space of 6 weeks and have been rejected by them all.

I have checked my credit score and everything seems to be in order, I have a high credit score. I have had a credit card and two store cards in the past, all were paid on time and have been cancelled. I been with my current employers for nearly 3 years.

So far the only reasons I can think of that I've been rejected is that I'm a private tenant and have moved 3 times in the space of 3 years and the fact that I never spent much on cards I've had in the past. Do these seem like feesible reasons?

safc118 · 2 May 2010 at 8:10PM

Purplefairy wrote: »

Hi

I've recently been applying for credit cards and I've applied for four over the space of 6 weeks and have been rejected by them all.

I have checked my credit score and everything seems to be in order, I have a high credit score. I have had a credit card and two store cards in the past, all were paid on time and have been cancelled. I been with my current employers for nearly 3 years.

So far the only reasons I can think of that I've been rejected is that I'm a private tenant and have moved 3 times in the space of 3 years and the fact that I never spent much on cards I've had in the past. Do these seem like feesible reasons?

I think you may have hit the nail on the head there

were you registered on the electoral roll at all of these adresses? lenders like stability and if they see you picking up sticks and moving every year they may think "will he tell me if he moves" if they have any doubt in there mind they will reject being registered on the electoral roll removes this doubt as if you forget they can track you down easier lol

CannyJock · 3 May 2010 at 12:23AM

Purplefairy wrote: »

Hi

I've recently been applying for credit cards and I've applied for four over the space of 6 weeks and have been rejected by them all.

I have checked my credit score and everything seems to be in order, I have a high credit score. I have had a credit card and two store cards in the past, all were paid on time and have been cancelled. I been with my current employers for nearly 3 years.

So far the only reasons I can think of that I've been rejected is that I'm a private tenant and have moved 3 times in the space of 3 years and the fact that I never spent much on cards I've had in the past. Do these seem like feesible reasons?

That and 4 applications in the space of 6 weeks.

Wait 6 months before applying for anything else.

Purplefairy · 4 May 2010 at 8:58AM

Thanks guys.

I'm pretty sure I was on the electoral register for all the properties I have been in. I'll probably wait for a while before making any other applications, the guide does say space out the applications but doesn't actually say how long for, so I thought waiting a week/2 weeks after would be fine but obviously not!

GingerFurball_2 · 12 August 2010 at 6:27PM

If I apply for and get accepted for one of the bad debt credit cards, does how much I spend on the card each month before repaying in full affect how much my credit rating is improved or repaired?

The only time I'd be using it would be as a replacement for those occasions where I buy about £5-£10 worth of groceries from my local Co-op and pay by debit card.

Is it worth the hassle of applying and potentially being rejected for a credit card to improve and repair my credit history when I'd be spending about £10-£20 a month on it, and repaying it in full?

Premier_2 · 12 August 2010 at 8:04PM

GingerFurball wrote: »

If I apply for and get accepted for one of the bad debt credit cards, does how much I spend on the card each month before repaying in full affect how much my credit rating is improved or repaired?

The only time I'd be using it would be as a replacement for those occasions where I buy about £5-£10 worth of groceries from my local Co-op and pay by debit card.

Is it worth the hassle of applying and potentially being rejected for a credit card to improve and repair my credit history when I'd be spending about £10-£20 a month on it, and repaying it in full?

It would certainly help you if you are accepted, regardless of the fact you only plan to spend £10 - £20 per month. You'll have a credit agreement and after some time it will show you haven't got into difficulties with it (assuming you pay in full & on time every month as per the article)

The risk you are not accepted is one you should bear in mind, but the major effect of not getting accepted is that you may be tempted to look elsewhere for another card and that is where lenders start to worry ... multiple applications in close succession indicating you are either being rejected or worse still are amassing a huge line of credit from different lenders (it's often not clear which but neither is welcome).

Credit is a bit like money itself. Once you have some it often seems easier to get more. I would suggest following the advice in the article if you have a poor credit history and start small (as you are planning to do) as you are more likely to keep up the repayments

Don't worry about only spending a little per month on the card. The credit file won't show that detail. All it will show is that you have an existing credit agreement, perhaps the amount of credit available (not 100% sure that is even shown), and no bad history. Bingo, you are on the road to having a good credit history

'Bad Credit' Credit Cards Article Discussion

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