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How can I improve my credit rating? It seems like an impossible viscious circle... watch

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    I desperately wanted a nation wide credit card for the cheap (0.8%) charge on foreign withdrawals outside of Europe, and free within Europe, and the 6 months interest free. However, they did a credit check on me and said because I have no history with them I cannot get an account with them.

    So, reluctantly, I went to loyds TSB, my current prime bank account provider, to request their credit card, as I think it would be safer to not use my debit card in Brazil/Argentina. They rejected me to...

    I do have money, I don't have a high salary or anything as I'm a student, but I've never been in debt, and only require a credit card for that bit of extra security.

    How can I compromise on this? Or how can I escape this cycle of 'not having any history' when it seems the only way to get one is to have had and used credit cards before? Anyway, how (if I can't get a credit card) do you suggest I stay as safe as possible in South America regarding my money?

    Thanks for reading...
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    sign up to aload of crappy websites that will sell your email address.

    within a week you will have 100 offers.
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    I'm also a student and i was refused a credit card at

    llyods tsb
    barclaycard
    virgin

    but strangely applied and received the Capital one credit card

    the only problem is that their APR is among the highest 34.9 %
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    That's funny. HBOS gave me a credit card with a £500 limit no problem and then upped the limit to £1000 without even asking me. Have you got a contract phone? That builds credit, providing you pay on time. I don't know if you'd have enough time to do this before you actually need a credit card though.
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    (Original post by jbanjeet)
    I'm also a student and i was refused a credit card at

    llyods tsb
    barclaycard
    virgin

    but strangely applied and received the Capital one credit card

    the only problem is that their APR is among the highest 34.9 %
    That's because they offer cards to low credit scores and therefore charge a higher interest rate.
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    my cousin said having a direct debit bill such as telephone bills going through your account can boost your rating? I dunno if thats true or not.
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    try not to apply for 'prime' credit cards, designed for people with good incomes and a good credit history.

    Try applying for a 'student' credit card or sub prime card (designed for people who need to build a good credit history).

    Did you apply for the student card from Lloyds or a different one?

    www.moneysavingexpert.com will help you
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    Yeah, having a mobile contract ect. helps improve your credit rating, as does sensibly using an overdraft. If you have never had either of these, then giving you a credit card is a bit of a risk. Also, you could try using your parent's address, as it's more permenant, so this improves your credit rating.
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    apply for a store credit card and make sure you make all your payments on time.
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    Well it'll be hard to get a credit card as a student. Try and search for ones designed for students.
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    I was declined a 100 quid limit 50% APR card. XD FML.
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    capital one are fairly decent mines like 18%apr which is lower then student cards so thats pretty good imho for a low credit rating person
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    I got my first credit card in the summer with Natwest, and they only gave it to me because I've banked with them for years - I've never had a direct debit to pay a phone bill etc. Go to the bank you're currently with (or whoever will give you a credit card), use the credit instead of your debit card to buy things, making sure you pay it back straight away - you probs won't get a good interest rate so make sure you pay things back before they start charging. Once you do this for a little while you will build up a good credit rating.
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    (Original post by Christina90)
    I got my first credit card in the summer with Natwest, and they only gave it to me because I've banked with them for years - I've never had a direct debit to pay a phone bill etc. Go to the bank you're currently with (or whoever will give you a credit card), use the credit instead of your debit card to buy things, making sure you pay it back straight away - you probs won't get a good interest rate so make sure you pay things back before they start charging. Once you do this for a little while you will build up a good credit rating.
    All I can say is that you have been extremely lucky.

    I did exactly the same with my bank, I've never been in debt, I've got a decent amount of money in my current account, I've never been overdrawn, I've got quite a bit of money in ISAs and savings account, I'm on a decent uni course with a guaranteed job at the end of it, etc - rejected.

    It doesn't matter how long you've been banking with someone if you don't have a regular income and/or a credit history the vast majority of places won't touch you with a barge pole.

    (Original post by lizfairy)
    I desperately wanted a nation wide credit card for the cheap (0.8%) charge on foreign withdrawals outside of Europe, and free within Europe, and the 6 months interest free. However, they did a credit check on me and said because I have no history with them I cannot get an account with them.

    So, reluctantly, I went to loyds TSB, my current prime bank account provider, to request their credit card, as I think it would be safer to not use my debit card in Brazil/Argentina. They rejected me to...
    Don't apply for any more cards for the next 3-6 months - if you get another rejection (which let's be honest, is a strong possibility) you will be red flagged and it will be years before you can get credit.

    (Original post by lizfairy)
    How can I compromise on this? Or how can I escape this cycle of 'not having any history' when it seems the only way to get one is to have had and used credit cards before?
    Firstly check out your credit history, make sure it's 100% airtight before you bother applying because something as little as not being on the electoral register, having a mobile number down instead of a landline, etc can throw out your application.

    There are credit checking services out there which you can join for a free trial and then you cancel it before they take out the monthly fee (after the trial period).

    You're looking for a sub prime credit card, very high apr, low limit, etc. You use it for a few purchases, never exceed the limit and pay the bill off promptly every month via direct debit (a standing order will deal with all of this if you set it up). If you **** up having a subprime card it will really harm your credit rating.

    Check out MoneySavingExpert.com, they've got much more information on the issue, a list of suitable cards, etc.

    (Original post by lizfairy)
    Anyway, how (if I can't get a credit card) do you suggest I stay as safe as possible in South America regarding my money?
    Worst comes to the worst...

    1) Keep your card safe, keep it secure and on your person and/or in a hotel/hostel safe.

    2) Never let it out of your sight. If a waiter takes it in a restaurant/cafe/bar to run it through the till go with him to make sure he doesn't skim it.

    3) Keep a copy of your card no., the fraud hotline, etc safe somewhere so that should the worst come to the worst you can cancel it promptly.

    4) If you're going to withdraw cash go into a bank, the ATMs are less likely to have been tampered with and/or you're less likely to be picked up by a mugger just down the road.

    I've used my debit card all over the world, South Africa and Sri Lanka has been some of the shadier places and I've never had any problems - you have just got to be careful.

    You can get prepaid credit/debit cards from the likes of the post office (and maybe visa) which are a bit safer. Then there's travellers checques and however much cash you feel comfortable/safe carrying.
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    (Original post by lizfairy)
    I desperately wanted a nation wide credit card for the cheap (0.8%) charge on foreign withdrawals outside of Europe, and free within Europe, and the 6 months interest free. However, they did a credit check on me and said because I have no history with them I cannot get an account with them.

    So, reluctantly, I went to loyds TSB, my current prime bank account provider, to request their credit card, as I think it would be safer to not use my debit card in Brazil/Argentina. They rejected me to...

    I do have money, I don't have a high salary or anything as I'm a student, but I've never been in debt, and only require a credit card for that bit of extra security.

    How can I compromise on this? Or how can I escape this cycle of 'not having any history' when it seems the only way to get one is to have had and used credit cards before? Anyway, how (if I can't get a credit card) do you suggest I stay as safe as possible in South America regarding my money?

    Thanks for reading...
    Don't bother getting a a credit card get a pre paid card from a travel company like sta travel. as for getting a credit history pay a phone bill or something
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    get the lloyds student credit card if you have your student account with them.

    Also phone contracts improve your credit rating.
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    (Original post by Callipygian)
    get the lloyds student credit card if you have your student account with them.

    Also phone contracts improve your credit rating.
    They won't offer me one
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    Credit card companies tend to reject people that have a history of routinely paying their bills off in full every month, because that way they make no money.
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    (Original post by rockrunride)
    Credit card companies tend to reject people that have a history of routinely paying their bills off in full every month, because that way they make no money.
    Yes and no.

    The people who tend to pay off their bills in full tend not to be the people who overstretch themselves and run up large amounts of debt, need credit cards, overdrafts, etc. When it comes to applying for credit cards said people have little or no credit history so the banks are reluctant to lend them money.
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    (Original post by lizfairy)
    They won't offer me one
    They wont offer you the student credit card?

    I was offered that 5 months before i was a (uni) student with no credit history whatsoever :s just for signing up to lloyds student account.

    http://www.lloydstsb.com/current_acc...nt_account.asp

    (Original post by Lloyds)
    Lloyds TSB Student MasterCard Credit Card – to help you spread your costs, typical 19.9% APR variable and a minimum limit of £500 (subject to application and status).*
    ahh, rubbish

    whatever you do, dont just keep applying to lots of cards, when you get rejected it comes up as a bad mark on your credit rating.
 
 
 
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