[Mr Noble]

Cut a long story short after numerous attempts at getting access to a credit card when i was working (have now been laid off ), I was declined due to the fact my Bank still had my account showing as a child account (i'm 20 ) all that has been sorted now though, yesterday the bank phoned up and offered me a credit card with a 2K limit even though i told them i'm out of work at the moment due to job loss.

They said " that's not a problem as i have banked with them since the age of 10" and have kept my account in good standing order never going over etc

I have declined as they turned down my application numerous times when i was working and needed a car to get to my job (because of an error on their part) and also as it would be foolish to have access to money which i would be unable to pay back until i'm back in work which hopefully is not long.

When i declined the credit card , they then offered me an overdraft limit of £500, are these guys trying to turn the economy around are trying to make it worse?

declined the overdraft aswell

My other thought is will this go against me when i am finally working /settled and want my own home will i be able to get a mortgage etc or have i shot myself in the foot

[Iccz]

I'm with the Abbey and i've had to ask for my overdraft to be removed twice, they have removed it by request in the past then for some reason thought it would be a good idea to give me it back without asking or telling me...

I've told them now that if they do it again I will be banking with someone else, it's crazy how they don't seem to pay attention or care about the customer, all they want to do is dish out credit cards and overdrafts.

I'm 23 and i've never had a credit card and i've had the overdrafts but never used them.
I've also been wondering like you if this will have any kind of impact on chances of lending when it comes to getting a mortgage, the only loan i've ever had was car finance.

I'm tempted to get a credit card to use for large payments for the added security, but i've heard lately that there isn't overly much more secuirty on a CC than on a Debit Card, not sure how true this is though...

But i'm in a similar position to you, wondering wether it'll do the credit score any good/harm etc

I still have my child savings account with a Building Society, it's still got a nice interest rate, i've not touched any of the money in there since I was 14 or 15 either, just incase they realise that i've been getting a different interest rate than what I should be...

[KhalJimbo]

Lenders generally like to see 2 types of credit agreement or at least some sort of credit history when applying for a mortgage as it shows them that you are then capbale of being in debt and being able to manage it.

Usually they like a credit card and a small loan or a student loan.

[PoochJD]

Hi,

Originally Posted by Iccz

I'm 23 and i've never had a credit card and i've had the overdrafts but never used them. I've also been wondering like you if this will have any kind of impact on chances of lending when it comes to getting a mortgage, the only loan i've ever had was car finance. I'm tempted to get a credit card to use for large payments for the added security, but i've heard lately that there isn't overly much more secuirty on a CC than on a Debit Card, not sure how true this is though...

As far as I am aware, being offered credit in any form, and declining it, should not affect your Credit Status or rating one bit in a negative sense. If anything, I'd like to think it would help you, because you declined it at a time when you decided you didn't need it, or if you had had access to it, that it would have caused more problems. In other words, you have shown yourself to be "good with money"!

As for added security on Credit Cards (CC) over Debit Cards (DC), the only major difference is if you use a CC to buy an expensive item (usually over £500, sometimes over £200 - depends on the card company themselves), then if you either get a problem with the company, or the item itself, you can usually claim the cost back from the card company. Useful, for when you buy things like furniture, expensive AV equipment, or on the Internet and company goes tits-up. DC's don't have this facility or option, and hence are no more secure than a wad of cash left in the street... unless you can prove the DC was used fraudulently.


Pooch

[dazza74]

Have to admit I'm currently very greatful that my credit card company insisted on putting my credit card limit up during the good times, means I have funds to keep my business a float and I can concentrate on building up cash to cover utility bills which can't be deferred. None of us know what's around the corner I think having the backup of a credit card or overdraft doesn't do any harm as long as your disciplined.

[Iccz]

Originally Posted by jimthelegend

Lenders generally like to see 2 types of credit agreement or at least some sort of credit history when applying for a mortgage as it shows them that you are then capbale of being in debt and being able to manage it.

Usually they like a credit card and a small loan or a student loan.

Surely someone who has managed to live their life without the need for credit shows that they have either a good income, good money management, or a general low spending.

I don't understand lenders' logic really, I can understand it to a degree but i've never had the need for credit in all honesty, the only reason I took out the loan was because of a good rate over a period of time which suited me, I could have saved up for the whole lump at once but figured having something like that for my credit rating would be of use in the future, turns out it was probably a good choice, but it's the only one piece I have, i'll probably get a card soon and rarely use it, paying it off at the end of each month etc, that way I should reach their criteria.

I think its wrong how to borrow money for a house you're encouraged to use other methods of credit to prove your worth.


Also regarding what Pooch said:

I heard that Debit Cards do offer Charge Backs?
I found this a while back:
http://whatconsumer.co.uk/visa-debit-chargeback/

Is this different?
Surely it's not just fraud?

[Jay]

Try and avoid any type of credit cards, overdrafts, loans.

If I don't have it I don't buy it.

[Iccz]

Originally Posted by Indecisive Jay

Try and avoid any type of credit cards, overdrafts, loans.

If I don't have it I don't buy it.

That's the kind of mindset I had, until I realised i'm going to want a mortgage at some point, I can't see myself saving up the money to get a house anytime soon...

[PoochJD]

Hi Iccz,

Originally Posted by Iccz

Also regarding what Pooch said:

I heard that Debit Cards do offer Charge Backs?
I found this a while back:
Visa Debit Chargeback - The Facts | Consumer Information

Is this different?

That's pretty much what I meant. Basically, Charge-Backs can be done on both CC's and DC's, though with DC's it's much rarer, whereas for CC's it's almost a given that you can claim back from the card company straight off.

Clearly, however, it appears from the website link shown above, that not all banks will offer the Chargeback service at first, unless you push for it, and also, that it only applies to Visa Debit Cards, not Mastercard Debit Cards.

Your best, is to always check your card (debit or credit) with the card company, and see what the card rules/regulations state about insurance, charge-backs and refunds.


Pooch

[Kebabhead]

Originally Posted by H3AD_SH0TZ

yesterday the bank phoned up and offered me a credit card with a 2K limit even though i told them i'm out of work at the moment due to job loss.

Thats just an initial offer, you haven't been accepted.

It's only when you go through the actual process application process where they will assess you will you find out whether they will accept/decline

[smallclanger]

We also only spend what we have, the house being an exception, but we didn't stupidly over extend ourselves on that and the amount left is coming down a along with the term each time we re-mortgage.

[Mr Noble]

Posty has just arrived along with a credit card application form from Vanquis Bank

The reason i was unable to apply for a credit card was as stated as my account was still a child account for some unknown reason , I've been working since leaving school time and since 18 tried to get overdrafts etc from Natwest (who i bank with and was declined ), when i went in to speak to the manager as to why as my credit rating has no blemish on it and i met the requirements for credit , the Manager was the one who checked on my account and say's i'm not sure how this is possible and asked to see my birth certificate , drivers licence to confirm my age , according to him i was still stuck on the Age of 16 on their systems ,

so if your getting knocked back for credit etc see your bank manager there could be a problem with your account , suprised customer service never flagged it up in the 2 years of applications though

[KhalJimbo]

Originally Posted by Iccz

Surely someone who has managed to live their life without the need for credit shows that they have either a good income, good money management, or a general low spending.

I don't understand lenders' logic really, I can understand it to a degree but i've never had the need for credit in all honesty, the only reason I took out the loan was because of a good rate over a period of time which suited me, I could have saved up for the whole lump at once but figured having something like that for my credit rating would be of use in the future, turns out it was probably a good choice, but it's the only one piece I have, i'll probably get a card soon and rarely use it, paying it off at the end of each month etc, that way I should reach their criteria.

I think its wrong how to borrow money for a house you're encouraged to use other methods of credit to prove your worth.


Also regarding what Pooch said:

I heard that Debit Cards do offer Charge Backs?
I found this a while back:
Visa Debit Chargeback - The Facts | Consumer Information

Is this different?
Surely it's not just fraud?

Not to sure how there logic works but when I looked into the housing market last year the mortgage advisor I spoke to told me that the lenders like to see at least some form of credit history being a loan and a credit card, could be a car loan or a student loan.

Apparently never having credit before counts as bad credit

[Mr Noble]

Originally Posted by Kebabhead

Thats just an initial offer, you haven't been accepted.

It's only when you go through the actual process application process where they will assess you will you find out whether they will accept/decline

Nope they said i had it if i wanted it , due to my account standing , probs because i have a couple of quid in their from being laid off

[Iccz]

Originally Posted by H3AD_SH0TZ

Posty has just arrived along with a credit card application form from Vanquis Bank

The reason i was unable to apply for a credit card was as stated as my account was still a child account for some unknown reason , I've been working since leaving school time and since 18 tried to get overdrafts etc from Natwest (who i bank with and was declined ), when i went in to speak to the manager as to why as my credit rating has no blemish on it and i met the requirements for credit , the Manager was the one who checked on my account and say's i'm not sure how this is possible and asked to see my birth certificate , drivers licence to confirm my age , according to him i was still stuck on the Age of 16 on their systems ,

so if your getting knocked back for credit etc see your bank manager there could be a problem with your account , suprised customer service never flagged it up in the 2 years of applications though

Sadly the bank managers these days dont have the power they used to, when I got finance for my car I was trying to get a loan with my bank, even went in and spoke to the manage, he said they couldn't do it the same day as they have to go through people higher up.

I went to the dealership where I got my car, spoke to the chap there and he sorted the finance out at a better rate than my bank and the same day.


It's funny how banks etc always blame their systems... anyone who works with computers will know that most of these "system" errors are usually because of user mistakes.

Originally Posted by jimthelegend

Not to sure how there logic works but when I looked into the housing market last year the mortgage advisor I spoke to told me that the lenders like to see at least some form of credit history being a loan and a credit card, could be a car loan or a student loan.

Apparently never having credit before counts as bad credit

My Dad told me the same thing which is why I got the finance for my car, he used to be an independant mortgage advisor so I just took his word on it. It makes little sense really but that's how it is.

[Mr Noble]

Originally Posted by jimthelegend

Not to sure how there logic works but when I looked into the housing market last year the mortgage advisor I spoke to told me that the lenders like to see at least some form of credit history being a loan and a credit card, could be a car loan or a student loan.

Apparently never having credit before counts as bad credit

Because they have nothing to base on how good you would be at paying back a loan/credit card from them surely

I have bought a few items on hire purchase TV/Hifi etc when i got my 1st flat so have a bit of debt behind me lol

[Jay]

Originally Posted by Iccz

That's the kind of mindset I had, until I realised i'm going to want a mortgage at some point, I can't see myself saving up the money to get a house anytime soon...

I knew someone would mention that, obviously I'd say a mortgage is different.

I guess I was referring to luxuries, taking a credit card, loan or overdraft to fund luxuries is silly.

If someone has no money and needs to get work done on their car as without it they can't get to work and it means dipping into their overdraft until they are paid at the end of the month, then fair enough.

The thing with any sort of credit is it's always "I'll only borrow x amount as I'll pay it back at the end of the month" or "It's only x amount per month, I can afford that, that's nothing"

The reality is a lot of "nothings" usually add up to a hefty sum.

I still stand by what I say, if it can be avoided then avoid credit, a 50" plasma on finace can be avoided for example.

[KhalJimbo]

Originally Posted by H3AD_SH0TZ

Because they have nothing to base on how good you would be at paying back a loan/credit card from them surely

I have bought a few items on hire purchase TV/Hifi etc when i got my 1st flat so have a bit of debt behind me lol

Thats why I said in my previous post that they want at least 2 forms of credit to how you manage being in debt

[Iccz]

Originally Posted by H3AD_SH0TZ

Because they have nothing to base on how good you would be at paying back a loan/credit card from them surely

I have bought a few items on hire purchase TV/Hifi etc when i got my 1st flat so have a bit of debt behind me lol

It's just illogical to say, because you have no record of paying back debt, we assume you are likely to be bad at it, where as that is not necessarily the case.

Someone on a good wage at a young age for example might not need to borrow money for their gadgets, car etc and still have a bit of cash left to save up for a deposit for when it comes to purchasing a house, but suddenly there is a big difference.
Now they might be on a great wage which sees them a comfortable life, but in order to get a house, or more so the house they desire, they will need a bit of help, assuming because they have no history they are not likely to be able to repay is just obsurd.

It would be like saying to someone on here, i'm not selling to you because you don't have a trader rating, how can you get the rating if you can't buy off someone.

Surely there is little point in someone getting a loan they don't need just to help their credit score?

[Kebabhead]

Originally Posted by Iccz

It's just illogical to say, because you have no record of paying back debt, we assume you are likely to be bad at it, where as that is not necessarily the case.

Lending money is based on risk thats why we have the credit scoring system

[Iccz]

Originally Posted by Indecisive Jay

I knew someone would mention that, obviously I'd say a mortgage is different.

I guess I was referring to luxuries, taking a credit card, loan or overdraft to fund luxuries is silly.

If someone has no money and needs to get work done on their car as without it they can't get to work and it means dipping into their overdraft until they are paid at the end of the month, then fair enough.

The thing with any sort of credit is it's always "I'll only borrow x amount as I'll pay it back at the end of the month" or "It's only x amount per month, I can afford that, that's nothing"

The reality is a lot of "nothings" usually add up to a hefty sum.

I still stand by what I say, if it can be avoided then avoid credit, a 50" plasma on finace can be avoided for example.

Don't get me wrong I agree with you 110%, it's just that the whole idea of making people think they need credit cards etc to get credit in future, getting someone on a credit card is likely to lead to them using it more, personally I will never spend more than I have, I have never been in debt apart from the finance of my car, which I have the money for covered, even if I was to lose my job, I don't want to be in a position where I have debt I dont have the money to pay it with.

I was just saying that they lead you to believe you need these credit cards and loans etc for helping get a mortage.

Originally Posted by Kebabhead

Lending money is based on risk thats why we have the credit scoring system

Does the risk not come from them not having it, rather than refusing to hand it over?

[Jay]

Originally Posted by H3AD_SH0TZ

Cut a long story short after numerous attempts at getting access to a credit card when i was working (have now been laid off ), I was declined due to the fact my Bank still had my account showing as a child account (i'm 20 ) all that has been sorted now though, yesterday the bank phoned up and offered me a credit card with a 2K limit even though i told them i'm out of work at the moment due to job loss.

They said " that's not a problem as i have banked with them since the age of 10" and have kept my account in good standing order never going over etc

I have declined as they turned down my application numerous times when i was working and needed a car to get to my job (because of an error on their part) and also as it would be foolish to have access to money which i would be unable to pay back until i'm back in work which hopefully is not long.

When i declined the credit card , they then offered me an overdraft limit of £500, are these guys trying to turn the economy around are trying to make it worse?

declined the overdraft aswell

My other thought is will this go against me when i am finally working /settled and want my own home will i be able to get a mortgage etc or have i shot myself in the foot

You made the right choice, hoepfully you'll find work soon, but what if you don't, those credit cards won't pay themselves.

You haven't shot yourself in the foot as you'll still be able to get credit cards when you're working again, you're credit hsitory isn't going to be effected between now and when you next work so you'll be fine.

If you're that paranoid though, get the credit card if you've got some serious will power i.e get it but don't use it.

The thing is though you'll end up using it for item x as it's only a small amount, then item y, them item x then item y (you get the idea )

[Kebabhead]

Originally Posted by Iccz

Does the risk not come from them not having it, rather than refusing to hand it over?

No the risk is you not paying them back

[KhalJimbo]

Originally Posted by Iccz

It would be like saying to someone on here, i'm not selling to you because you don't have a trader rating, how can you get the rating if you can't buy off someone.

Surely there is little point in someone getting a loan they don't need just to help their credit score?

Its the same thing as leaving university and the only jobs around are ones that want you to have 3 years experience, every wants you to have it, but no one wants to give it.

Personally I dont understand the whole credit scoring thing I have checked my credit reports with experian and equifax and as of 2 weeks ago they were both on excellent, yet somehow I still got turned down when applying for a new card?

[Iccz]

Originally Posted by Kebabhead

No the risk is you not paying them back

But where is the risk when you have the law on your side?
Isn't that why debt collectors have jobs etc?

I would have thought the main reason people don't pay debt back is because they simply don't have it

What's stopping someone with a good credit score deciding not to pay them back?

It doesn't make sense to me...
I can partly see the logic, but it just seems a bit illogical.

[Jay]

Originally Posted by Iccz

I was just saying that they lead you to believe you need these credit cards and loans etc for helping get a mortage.

I guess they just look for some sort of history showing that you are "good" at repaying, managing re-payments etc.

You can use credit sensibly in order to show you are "good" and fall within the requirements.

e.g get a store card or credit card and just use it to buy what you can afford, so say you buy item x at £500, (you have the £500) use your credit card and pay it back straight away.

People alway use credit cards as a way of spending what they don't have, but they could use them in other ways, e.g saves carrying cash (that you actually have) around,

The thing is a lot of people can't restrain themselves and end up spending money they don't have, and end up in a downward spiral.

Also the work experience thing someone mentioned is very good, you need experience to do job x but how can you get experience if no one gives you the job.

But there is always an employer out there that will take you on.

It's the same with credit, you need a credit history to get credit but how do you get a history?

Well some companies will give you credit without a history, it's just there are some companies who choose to only give credit out to those with a certain "credit rating"

Just have look around, and do some research, some companies are very strict when it comes to lending, i.e you need a very good credit hsitory, others aren't as strict, (the same with employers, some will only take with experience, others exeprience isn't essential).

[Kebabhead]

Originally Posted by Iccz

What's stopping someone with a good credit score deciding not to pay them back?

Because people get into financial difficulties very easy

One minute life can be rosy, then next minute you can looseyour job. Can happen to anyone even with a good credit rating

[Mr Noble]

Well i've decided i'm not taking on the plastic until i can financially support it , as i'm not that strong willed so if i see something that i want , i would probs hit the card if i had no cash available ,

It was more the idea of not being to get future loans/mortgage in time to come that had be wondering if i had made a mistake , oh well mind is deffo made up, All i need to do now is get a job sorted , flaming Nissan i curse you

[Iccz]

Originally Posted by Kebabhead

Because people get into financial difficulties very easy

One minute life can be rosy, then next minute you can looseyour job. Can happen to anyone even with a good credit rating

Which in theory makes their logic; illogical?


I agree with what you're saying and I understand, it just doesn't seem to be a good way to base things... but I guess it's better than nothing.

[Jay]

Originally Posted by Kebabhead

One minute life can be rosy, then next minute you can looseyour job.

No worries the credit companies offer extra insurance should you lose your job

I was being sarcastic

I do wonder how many people feel secure in the knowledge that they have their "protection insurance"