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

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    (Original post by ch0c0h01ic)

    ""
    Thanks for all the info, I guess I could do without one it's just very frustrating, especially when I found that even the bank I've been with for all my life couldn't offer me a credit card, they offered me £500 overdraft though just in case.
    I guess I'll be stuck with a prepaid travel card,cash and travelers checks.
    Are those cards you get people at home to top up any good?
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    My parents say it probably wouldn't have been an issue even less than a year ago but the credit crunch is making all the big banks wary to give out credit cards.
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    (Original post by lizfairy)
    I guess I'll be stuck with a prepaid travel card,cash and travelers checks.
    Are those cards you get people at home to top up any good?
    I've never used them but from what I hear they're just a pre-paid debit/credit card. You charge them up with a set amount and then you use them just like any other Visa/debit card.
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    (Original post by lizfairy)
    My parents say it probably wouldn't have been an issue even less than a year ago but the credit crunch is making all the big banks wary to give out credit cards.
    One of my mates managed to get a credit card last year before the banking crisis, fast forward a couple of months and nobody else could, even those with part time jobs, assets, etc.
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    (Original post by marieisfab)
    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.
    This, about the phone. :yep: Also, having an overdraft and always paying the interest.
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    (Original post by FrancesO)
    This, about the phone. :yep: Also, having an overdraft and always paying the interest.
    Then again most phone companies will perform a credit check during the application process - if you struggle to get a credit card you may well struggle to get a contract phone (worst case scenario you do even more damage to your credit rating).

    Likewise a phone contract is quite a bit different to a credit card. You default on your phone contract, the company terminates your service and loses something like £30. If you go on the spending spree with your credit card and can't pay it all back the bank could be at a loss of £100s.

    It is by no means a dead cert.
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    That's odd... I had no trouble getting a Lloyds credit card a couple of months ago. I have my student account with them, just walked into the branch (not even the branch where my account is held) and said 'I'd like to apply for the student credit card please.' and one arrived a week later in the post. She did a credit check, but I can't imagine anything coming up on it- I have no phone contract, had only ever once paid anything by direct debit...
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    (Original post by ch0c0h01ic)
    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.
    Really? I am surprised, I did pretty much the same thing but HSBC. In fact they processed the card before I got the student account!

    But then apart from no credit history I had everything else (same house for 7yrs electoral register etc. though ofc no regular income other than what would be my student loan) Also a reasonable amount of money deposited with them (I don't know maybe some banks count this).

    Maybe I was just lucky too...
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    (Original post by crazylemon)
    Really? I am surprised, I did pretty much the same thing but HSBC. In fact they processed the card before I got the student account!

    But then apart from no credit history I had everything else (same house for 7yrs electoral register etc. though ofc no regular income other than what would be my student loan) Also a reasonable amount of money deposited with them (I don't know maybe some banks count this).

    Maybe I was just lucky too...
    One of my housemates couldn't even get a credit card despite having a regular (but part time) income, plenty of money in the bank (she'd just recieved inheritance of 5 figures), etc.

    It's a sign of the times.
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    (Original post by ch0c0h01ic)
    One of my housemates couldn't even get a credit card despite having a regular (but part time) income, plenty of money in the bank (she'd just recieved inheritance of 5 figures), etc.

    It's a sign of the times.
    Wow.

    I only got mine this summer. Didn't think it had deteriorated THAT much since then...
    I do however have 18 years of history with the bank which might count for something. Dunno
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    I got my credit card at the beginning of this month.

    I got a message notifying me of some strange transactions on my debit card (bought a computer for some1, so money came in and went straight out again ~£600)

    I rang the fraud department and they said "its fine, just checking you're aware. By the way, do you want to sign up for a credit card?"

    and that was that, had to pop into branch to show driving licence and got card the next week

    student, no history etc, 1000 overdraft with them for a year.
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    (Original post by ch0c0h01ic)
    Then again most phone companies will perform a credit check during the application process - if you struggle to get a credit card you may well struggle to get a contract phone (worst case scenario you do even more damage to your credit rating).

    Likewise a phone contract is quite a bit different to a credit card. You default on your phone contract, the company terminates your service and loses something like £30. If you go on the spending spree with your credit card and can't pay it all back the bank could be at a loss of £100s.

    It is by no means a dead cert.
    I got a contract phone no problem - I had absolutely no credit before that. It's worth a shot even if it is worth barely anything in credit ratings, it'll get you on the ladder, so to speak.
 
 
 
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