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  • FIRST POST
    • Emily Joy
    • By Emily Joy 4th Mar 18, 9:08 PM
    • 107Posts
    • 52Thanks
    Emily Joy
    Stuck Trying to Get a Credit Card/ Phone Contract
    • #1
    • 4th Mar 18, 9:08 PM
    Stuck Trying to Get a Credit Card/ Phone Contract 4th Mar 18 at 9:08 PM
    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.
    Last edited by Emily Joy; 11-04-2018 at 11:26 AM.
Page 1
    • Ben8282
    • By Ben8282 4th Mar 18, 9:53 PM
    • 2,283 Posts
    • 1,018 Thanks
    Ben8282
    • #2
    • 4th Mar 18, 9:53 PM
    • #2
    • 4th Mar 18, 9:53 PM
    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.
    • Emily Joy
    • By Emily Joy 4th Mar 18, 10:49 PM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    • #3
    • 4th Mar 18, 10:49 PM
    • #3
    • 4th Mar 18, 10:49 PM
    I assume that it is the bank which has existed for over 100 years rather than the account.
    Originally posted by Ben8282
    Quite possible, although I am quite happy with the bank myself...
    I am guessing that loan C is a cashplus credit builder thing or similar.
    Originally posted by Ben8282
    You are exactly right.
    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.
    Originally posted by Ben8282
    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.
    Perhaps when she gets another credit card she should set up a direct debit to avoid such a thing happening again.
    Originally posted by Ben8282
    Yes, definitely.
    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.
    Originally posted by Ben8282
    Ok. Will look into it. Although I am suspecting she might be talked into getting something which is a surplus to requirements.
    Suggest you use an eligibility checker to see what sort of results she gets before applying for another card.
    Originally posted by Ben8282
    Would the one from MSE credit club suffice or do you have one to recommend?
    • DCFC79
    • By DCFC79 4th Mar 18, 11:07 PM
    • 31,688 Posts
    • 19,985 Thanks
    DCFC79
    • #4
    • 4th Mar 18, 11:07 PM
    • #4
    • 4th Mar 18, 11:07 PM
    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.
    Last edited by DCFC79; 04-03-2018 at 11:11 PM.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Nebulous2
    • By Nebulous2 5th Mar 18, 8:37 AM
    • 1,871 Posts
    • 1,126 Thanks
    Nebulous2
    • #5
    • 5th Mar 18, 8:37 AM
    • #5
    • 5th Mar 18, 8:37 AM
    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.
    • Emily Joy
    • By Emily Joy 5th Mar 18, 8:51 AM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    • #6
    • 5th Mar 18, 8:51 AM
    • #6
    • 5th Mar 18, 8:51 AM
    She should check the other two CRAs through clearscore and noddle. They may have other information.
    Originally posted by Nebulous2
    The bank's advisor suggested to bring the report from Experian to discuss it...
    We will get another two if this doesn't get us anywhere.
    I presume loan B was taken to replace loan A? What was the benefit of that, to extend the timescale?
    Originally posted by Nebulous2
    Yes.
    What is the balance / APR on it?
    Originally posted by Nebulous2
    The balance is just under 4500. I don't know APR - I haven't seen this paperwork.
    Is she on the electoral roll?
    Originally posted by Nebulous2
    Yes.
    What is her income? If on a low income affordability might be an issue.
    Originally posted by Nebulous2
    About 25000/year before tax.
    Has she a stable job / address?
    Originally posted by Nebulous2
    She has been on the same job/at the same address for a couple of years now.
    Don't use the overdraft.
    Originally posted by Nebulous2
    Ok, thank you.
    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.
    Originally posted by Nebulous2
    Thank you, will try that!
    • Emily Joy
    • By Emily Joy 8th Apr 18, 12:30 PM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    • #7
    • 8th Apr 18, 12:30 PM
    • #7
    • 8th Apr 18, 12:30 PM
    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?
    • Nasqueron
    • By Nasqueron 8th Apr 18, 2:35 PM
    • 4,528 Posts
    • 2,669 Thanks
    Nasqueron
    • #8
    • 8th Apr 18, 2:35 PM
    • #8
    • 8th Apr 18, 2:35 PM
    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?
    Originally posted by Emily Joy
    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 period
    • Emily Joy
    • By Emily Joy 8th Apr 18, 3:04 PM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    • #9
    • 8th Apr 18, 3:04 PM
    • #9
    • 8th Apr 18, 3:04 PM
    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
    Originally posted by Nasqueron
    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?
    Last edited by Emily Joy; 08-04-2018 at 3:11 PM.
    • Nasqueron
    • By Nasqueron 8th Apr 18, 6:56 PM
    • 4,528 Posts
    • 2,669 Thanks
    Nasqueron
    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?
    Originally posted by Emily Joy
    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
    • Emily Joy
    • By Emily Joy 8th Apr 18, 7:36 PM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    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
    Originally posted by Nasqueron
    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?
    • Nasqueron
    • By Nasqueron 9th Apr 18, 2:56 PM
    • 4,528 Posts
    • 2,669 Thanks
    Nasqueron
    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?
    Originally posted by Emily Joy
    6 years from last payment/acknowledgement etc, the rules are listed on this forum somewhere
    • Emily Joy
    • By Emily Joy 17th Apr 18, 9:39 PM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    It appears there was a PPI on the loan...

    1. Is there any way to find this PPI T&C? visit a branch and make a formal request?
    2. My understanding is that the current APR is 12%. Does it worth to ask to reduce it?
    3. Is it right that one can ask for the initial loan T&C, if the original paperwork was lost?
    • zx81
    • By zx81 17th Apr 18, 10:15 PM
    • 16,855 Posts
    • 17,872 Thanks
    zx81
    1. You don't need the t&Cs. You need a complaint reason.
    2. You can ask, but they will say no. The APR is the one agreed to.
    2. Yes, you can ask for a copy of the agreement. There may be a charge.
    • Emily Joy
    • By Emily Joy 17th Apr 18, 11:05 PM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    1. You don't need the t&Cs. You need a complaint reason.
    Originally posted by zx81
    Without T&C the only complaint reason I can think of is that it was sold with the loan without opt-out option.
    3. Yes, you can ask for a copy of the agreement. There may be a charge.
    Originally posted by zx81
    We only want it to see what would be consequences of overpaying/early settlement...
    • jonesMUFCforever
    • By jonesMUFCforever 18th Apr 18, 12:38 AM
    • 24,776 Posts
    • 11,986 Thanks
    jonesMUFCforever
    A card taken out in 2012 is unlikely to have had PPI on it IMO.

    Lloyds stopped on 27 July 2010 although customers who previously had the cover still pay until they ask for it to be stopped.
    What goes around - comes around
    give lots and you will always receive lots
    • Nasqueron
    • By Nasqueron 18th Apr 18, 12:50 PM
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    Nasqueron
    Without T&C the only complaint reason I can think of is that it was sold with the loan without opt-out option.

    We only want it to see what would be consequences of overpaying/early settlement...
    Originally posted by Emily Joy
    Don't guess at these things, if you go in guns blazing saying that and it turns out she ticked a box on the form then you've killed your credibility. Focus on facts - was she working full time when it was taken out, would the PPI cover her (some didn't cover the self-employed properly for example), was it front loaded (single premium) etc
    • Emily Joy
    • By Emily Joy 18th Apr 18, 6:07 PM
    • 107 Posts
    • 52 Thanks
    Emily Joy
    Don't guess at these things, if you go in guns blazing saying that and it turns out she ticked a box on the form then you've killed your credibility. Focus on facts - was she working full time when it was taken out, would the PPI cover her (some didn't cover the self-employed properly for example), was it front loaded (single premium) etc
    Originally posted by Nasqueron
    Shall we approach the bank and ask for the PPI T&C then? Otherwise we simply cannot figure out whether the PPI would cover her or not. A separate question is whether it was of any use during the year missed/underpayments.
    • Nasqueron
    • By Nasqueron 18th Apr 18, 10:07 PM
    • 4,528 Posts
    • 2,669 Thanks
    Nasqueron
    Shall we approach the bank and ask for the PPI T&C then? Otherwise we simply cannot figure out whether the PPI would cover her or not. A separate question is whether it was of any use during the year missed/underpayments.
    Originally posted by Emily Joy
    You could do but trying to go through them and look for ways of cherry picking your complaint reasons to tailor the complaint is fairly bad. Find out if it was front loaded/single premium on the loan and if so, complain on that basis, otherwise just explain the situation and see what happpens
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