Credit card query

Hawking · 14 Mar 2006 at 13:05

http://www.vanquis.co.uk/home/Home.aspx

These people offer cards with an appalling rate of interest - a mind-boggling 39.9%. On no account should you EVER not pay your monthly balance off.

But they do give cards to people who can't get them elsewhere so you can build up a credit record.

I really am in two minds about posting that link because anyone who does not pay off their balance risks a headlong plummet into crippling debt. It's a bit like publishing the recipe for nuclear fission. But the card does have its [limited] uses.

If I were the OP I would stick with using Dad's card and pay him back till I had a higher wage. Vanquis is not really suitable for travelling as you might miss a payment while you are overseas.

Since you plan to travel, the best idea would be to get your Dad to get a Nationwide card (no exchange rate loading on overseas purchases) and have yourself as joint holder.

Haly · 14 Mar 2006 at 13:05

Slime101 said:
Who said all cards??

Slime101 said:
Basically you dont earn enough, increase your income or you wont get one.

Didn't really narrow the field down for the OP. I know I read it to mean all.
But never mind, no need to get tetchy.

Mr Man · 14 Mar 2006 at 13:06

Slime101 said:
Who said all cards??

Yes, people earning next to nothing and those with CCJ's etc can get cards, but why would you want one that was 28% interest and rubbish like that, its not worth having one unless its a goodun, they only serve to make those in a bad situation worse off!

But if you have NO credit rating then the only way you are going to get both a credit rating and a CC is by using one of these cards, and as long as you pay off the full amount each month the interest rate wont hurt.

Borris · 14 Mar 2006 at 13:07

Credit ratings and credit scores are proprietary to individual institutions, and are based upon your past history regarding repayment and defaults (this is where they use experian / equifax), CCJs and current / future income.

You would have to contact every bank / card company that you have ever applied to in order to find your credit score, but in all likelihood, they won't tell you.

#Chri5# · 14 Mar 2006 at 13:09

Take it easy on making so many applications close together - it does you no favours when a company looks at your history / record and sees multiple applications which have been turned down. Has a hint of desperation about it.

iv-tecman · 14 Mar 2006 at 13:13

Dolph said:
The capital one card might be your best bet, they'll give the high rate/low limit cards to most people and they are a good way to build up your credit rating.

I've never had a problem with capital one either (I've got a no-hassle platinum card), definitely a nice company to deal with IME.

Actually I got to agree with that... I've got the no-hassle platinum card myself, and they have NEVER increased the limit, and I've got a great transfer rate with it.

My Halifax CC was £500 when I got it 7 years ago, and I've NEVER requested an increase.. It is now £17,500. Glad I owe nothing on it, as I always buy on it, and pay the balance off... I have also brought on it, and then transferred to my Capital one at the low rate of 7%. £1000 at 7% paid at £150 odd a month comes down quickly... Quick cheap loan IMO.

but, if you do get a CC, be careful. They are a road to ruin if not respected...

Dolph · 14 Mar 2006 at 13:17

iv-tecman said:
Actually I got to agree with that... I've got the no-hassle platinum card myself, and they have NEVER increased the limit, and I've got a great transfer rate with it.

My Halifax CC was £500 when I got it 7 years ago, and I've NEVER requested an increase.. It is now £17,500. Glad I owe nothing on it, as I always buy on it, and pay the balance off... I have also brought on it, and then transferred to my Capital one at the low rate of 7%. £1000 at 7% paid at £150 odd a month comes down quickly... Quick cheap loan IMO.

but, if you do get a CC, be careful. They are a road to ruin if not respected...

Captial one did increase my limit, but they also made it clear they would put it back no problems if I didn't want it raised, and with the interest rate I pay (5.9%) it's not that much higher than my mortgage (which is insane)

But I do agree strongly with what you say. Road to ruin is definitely a good description for irresponsible credit card use. There's nothing wrong with not paying them off each month, but for gods sake be sensible with it.

Aruffell · 14 Mar 2006 at 13:19

Classic visa on its way from Capital One.

Thanks guys

Andy

iv-tecman · 14 Mar 2006 at 13:22

Dolph said:
Captial one did increase my limit, but they also made it clear they would put it back no problems if I didn't want it raised, and with the interest rate I pay (5.9%) it's not that much higher than my mortgage (which is insane)

But I do agree strongly with what you say. Road to ruin is definitely a good description for irresponsible credit card use. There's nothing wrong with not paying them off each month, but for gods sake be sensible with it.

You got a better rate then me... I pay 8.9% for purchases, and 6.9% for transfers for the life of the balance, no transfer fee. Credit limit has always been £2,500, and it's a VERY good card. always nice on the phone as well.. Very friendly and warm to speak with.... I thought it was just a one off when I called and I'd forgot to make a payment, and they were nice and waived the charges... Since calling them for balance transfers, always been nice to me, and never force products on me..

do keep asking if I've got my pin, and I must use by pin, but other then this seem fine.

Phantom · 14 Mar 2006 at 14:36

youre too young and dont earn enough.. in their (credit card companies) eyes you are a high risk for someone not being able to pay your debts if you got into trouble.

if you can speak with them 1-on-1 and explain your situation, show proof then you may be able to otherwise its unlikely.

robbiemc · 14 Mar 2006 at 14:48

I seem to be a bit late into this, but I would never get a credit card designed for people with poor credit ratings. The interest rate is always sky high.
Why don't you look at a pre-paid card from http://www.bluecorner.co.uk/, that way you'll never be tempted to buy using a sky high APR, as you (obviously) load the card up with money.

Dolph · 14 Mar 2006 at 14:52

robbiemc said:
I seem to be a bit late into this, but I would never get a credit card designed for people with poor credit ratings. The interest rate is always sky high.
Why don't you look at a pre-paid card from http://www.bluecorner.co.uk/, that way you'll never be tempted to buy using a sky high APR, as you (obviously) load the card up with money.

Because such things don't add to your credit rating would be the most obvious reason...

The only way to get a good credit rating is to take credit, sad fact but true.

Cards like Bluecorner are designed for people with credit ratings so bad they can't get a credit card at all.....

Hawking · 14 Mar 2006 at 17:14

And have you looked at the annual charges and the cash loading charges for prepaid cards? Astronomical. These are best as pocket money cards for children because you can cancel them if the child loses them. They are not really suitable for anyone but the most desperate adult.

Do Capital One give an instant decision online, btw - or is it just a decision in principle?

Still think being second signatory on Dad's account is the best bet for travelling, presuming your Dad trusts you.

iv-tecman · 14 Mar 2006 at 17:17

Hawking said:
And have you looked at the annual charges and the cash loading charges for prepaid cards? Astronomical. These are best as pocket money cards for children because you can cancel them if the child loses them. They are not really suitable for anyone but the most desperate adult.

Do Capital One give an instant decision online, btw - or is it just a decision in principle?

Still think being second signatory on Dad's account is the best bet for travelling, presuming your Dad trusts you.

Agree with you about pre loaded cards. They are for chumps who cannot control their money and have such bad debt already, or no bank account this is the only option.

Capital one can give online decisions, but sometimes they will put your application to an underwriter, to see what rate to offer you. Some get better rates then others..

I rent, therefore I couldn't get the BEST rate, as opposed to someone who is a home owner. It depends on your circumstances....

dirtydog · 14 Mar 2006 at 17:18

Haly said:
Then how come I got one with HSBC 3 years ago when I was earning absolutely nothing?

I also got my first credit card when I was earning nothing

I was on the dole in fact. I told Barclaycard this but they were still happy to give me a standard Visa card with a £500 limit, obviously based on my otherwise good financial record.

Borris · 14 Mar 2006 at 17:22

dirtydog said:
. . . based on my otherwise good financial record.

Or that of those that share your address - Equifax / Experian link your credit report to others that share your home - If they have a poor credit history, it reflects poorly on you (and vice versa).

You can have any spurious links removed, but this has to be at your request.

Scottland · 14 Mar 2006 at 17:25

Borris said:
Or that of those that share your address - Equifax / Experian link your credit report to others that share your home - If they have a poor credit history, it reflects poorly on you (and vice versa).

You can have any spurious links removed, but this has to be at your request.

I was under the impression that this is no longer the case (as of ~Oct 04)?

Borris · 14 Mar 2006 at 17:27

Scottland said:
I was under the impression that this is no longer the case (as of ~Oct 04)?

I haven't looked into it for some time, so you may be right.

Hawking · 14 Mar 2006 at 17:28

dirtydog said:
I also got my first credit card when I was earning nothing I was on the dole in fact. I told Barclaycard this but they were still happy to give me a standard Visa card with a £500 limit, obviously based on my otherwise good financial record.

Credit card issuers are under a lot of pressure to "lend responsibly". I think you will see lots of the easy credit coming to an end. Card companies are already reining in on who they lend to, and a lot of the good deals are being axed or cut back - namely 0 per cent balance transfers and 0 per cent purchase deals.

First off, it is costing the companies a packet in terms of incentives and bad debt, second they don't want to risk legislation that would hurt them further. They are being clobbered on excessive late payment penalties by the Office of Fair Trading and last year the Treasury Select Committee had a go at them. Who can forget Matt Barrett of Barclaycard telling them he would not borrow on a credit card because it was too expensive?

Hawking · 14 Mar 2006 at 17:30

Borris said:
Or that of those that share your address - Equifax / Experian link your credit report to others that share your home - If they have a poor credit history, it reflects poorly on you (and vice versa).

You can have any spurious links removed, but this has to be at your request.

Not unless you are actually financially linked to them - such as a joint bank account or mortgage.

Sometimes people do get linked by accident - and, as Borris says, you can have the link removed. You can also ask for a notice of disassociation from anyone you used to have links with but don't any more - eg an estranged partner.

Credit card query

Woman of Honour