Credit Cards vs Debit Cards

thanks all - reading this has def made me want my first credit card!
I shall shop around now

anyone got any tips?
(I don't plan to spend spend spend just want to build up credit rating)
 
I have a Natwest Advantage Gold CC and it's 0% for the first 6 months.

So far I've paid it off in full each month however I've needed a few things recently (such as 4 new tyres for my car), though I'm not in a huge rush to pay it off. I'll obviously pay the minimum and it'll be cleared down before it finishes the 0% period anyway.

I also have £250 going into my ISA every month so if needed I could just pay the CC off. I'm looking at increasing this, but not just yet.
 
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PMKeates said:
If income is a reason why my application was declined, yet I exceed the income requirements, then the income requirements need to be changed. Either that, or it's actually the combination of more than one factor that my application was declined.
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Sorry if I wasn't being clear but income isn't the only condition they look at, as you say.

It's probably one of the many other factors that one needs to pass that I'm guessing you failed on.
 
PMKeates said:
If income is a reason why my application was declined, yet I exceed the income requirements, then the income requirements need to be changed. Either that, or it's actually the combination of more than one factor that my application was declined.
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It's the latter. There's so many more factors that decide whether to accept or not to accept an application. You will never find out the criteria why unless you contact an underwriter and oppose their decision as a lot of the criteria is business sensitive.

If it's an auto decline then an underwriter can take a further but may require you to prove why it is they should accept you rather than joe bloggs down the road. The best bet is to wait for the decline letter - it will be generic but it will also have a number to call the underwriting team to discuss in more details.
 
PMKeates said:
All of these I should do quite well at - perfect history, probably better than top 10%, over a decade at current residence. It seems irrational. The only thing I can think of is they have severely tightened it up for people under 25? Maybe because I live in a rubbish area?
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Amex are known to like mortgages in their decisioning process. If you're under 25, you might have a 'perfect' credit history, but it might not be long enough. Finally, you may also not have reported a high enough salary for the potential debt burden, especially if you have several other cards.
 
PMKeates said:
It seems silly to set a £30,000 minimum income and then not accept people who are far beyond it (a HR tax payer is >45% beyond).
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Credit bureaux don't have income data, so the only information credit card companies have about your income is what you yourself put on the application form - as a result it's not heavily used in decisioning.
 
If you have a VISA debit card, such as the one from HSBC, you enjoy the same protections as any VISA credit card.

So you do not need a credit card for security on the internet and if running up a debt is a worry then stick to a VISA Debit card supplied by a bank.

I have a separate account for on-line shopping from my current account, just for that added protection.


Those of you pushing the Virgin Card, Virgin Credit Cards are issued by MBNA, so just take a little time to google MBNA and you will see that it is not the best option, stick with a CC issued by your own bank if you feel the need for one.
 
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Castiel said:
If you have a VISA debit card, such as the one from HSBC, you enjoy the same protections as any VISA credit card.
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This isn't quite true. Whilst the VISA chargeback programme offers you some protection, this isn't as strong as the Section 75 CCA protection you get with a credit card.
 
a family member of mine user their credit card whilst in the states, 6 or so months later they won a competition run by their credit card co and stayed in a £10,000 per person per night holiday for a week for 4 people; it's where david beckham and other very very rich celebs stay apparently, therefore credit cards are better then debit cards.
 
Seft said:
This isn't quite true. Whilst the VISA chargeback programme offers you some protection, this isn't as strong as the Section 75 CCA protection you get with a credit card.
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Unlike some CC protection the VISA Debit chargeback allows you to claim for amounts less than £100 as well as those above.

When you add this to the on-line and fraud protections offered by your bank on your debit card and current account the difference is not that much. It is only the legal liability of the issuer that is different, being a legal requirement for CC, and not DC, but if your bank offers the service it is required to uphold it.

If you are likely to overspend then it is a better option than a credit card tbh.
 
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