Credit cards.

**Generalissimo** · 12-31-2007, 02:55 PM

I'm finding it really hard to get one. I've applied to everyone I can find and either have been instantly rejected or told they'll send me a letter (I don't think that's a good thing, but might mean under consideration).

Things in my favour:

£20,000 income a year (I'm guessing this, but this is what I put, company makes much more)
Private furnished tenant in good area on good rent
Pay for almost everything by direct debit and never default
Have a landline and mobile on contract

Things against me:

Self-employed (well live off dividends from my company, so I guess its classed as this).
Only 18
Address history asks for 3 years but only asks for one previous address usually - only lived in current flat for 3 months, and previous for a year and three months.
Not (I don't think yet) on electoral register
Never had credit before so they can't see if I'm reliable (I am obviously)
Not at university yet so no student loans which seems to act in your favour (even though students get into massive debt - I don't understand why this acts in your favour).

So what should I do? Has anyone else faced this problem? I've applied to over 20 cards including store cards and cards meant for people who have had very very bad credit in past, and none have given me a positive (at least not yet) decision. How can I make it so I get one other than taking out loans and paying them back straight away which will cost a fortune but build a credit rating?

**demosfen** · 12-31-2007, 09:10 PM

Mortgage crunch is expected to spread to other industries, perhaps it's already happening. It's going to get harder and harder to get credit in the next few years

**Chris** · 12-31-2007, 09:16 PM

I'm sure there are various differences between US and UK systems, so I'm not sure how much I would know about your system, but it certainly isn't that hard in the US. If you rent and have a cell phone you can get a credit card, maybe a low limit Discover card or something, but it is something. Or a Gap Card, or whatever, just to build your credit history.

When I did it though, my first credit card was a secured one (I had to put down a security deposit in the amount of the credit limit, which was only $300). I kept that for a few months to establish a history and then got accepted for a $2k unsecured one.

Having an auto loan also helps.

Have you tried American Express? In my experience it seems to be the preferred card for non-us citizens, atleast those who order from me.

Otherwise, look around for a secured option, just to build your history, like I did.

Also... in the US, applying for many different cards HURTs you. So each new rejection you get will actually hurt any further attempts you make (assuming your system is the same).

**Xander** · 01-01-2008, 01:13 AM

I found it difficult to get a credit card, the first time I applied the bank told me I was "pre-approved" but then I was rejected, really strange. I applied again a few years later and was finally successful (but that was only after I got a mortgage).

I think your age being under 21 and being self-employed doesn't help. As Chris says you best option for the time being is a secured option, you don't get much credit and sometimes the deposit is higher than the credit (my friend had one where he had to pay in a deposit of £250 and only got £200 credit!) but it helps build up your credit report. You could also get a copy of your credit report to see if there is anything negative on there.

**Blue Cat Buxton** · 01-01-2008, 06:03 AM

Get on the electoral register - it is easy and does really improve your credit record as it shows you have a stable address

If you cant get a credit card, try for a store card, debenhams or something, buy something small and pay off the debt - it goes to build up your credit record.

Also get a copy of your credt score from experian, costs about £2, and will show you what the credit card companies see when you apply

**Todd W** · 01-02-2008, 12:07 PM

Here in the US paying everything on debit does nothing for your credit. And as Chris said applying for a bunch of places can hurt you... in the US if you do them in a week period of time they are lumped in as '1' and not 50 million credit inquiries, we also have soft inquiries where it doesn't hurt you and this is what AMEX does/did for me when I applied and asked for more $$.

**Generalissimo** · 01-02-2008, 12:20 PM

I just phoned bank for something unrelated (online banking help) and was told I was 'preapproved' for a credit card. I said I was interested and was put through to someone who told me my bank had also preapproved me for a £6000 (just over $12000) loan and a £1000 ($2000) overdraft. I wonder if being preapproved actually means I'll be approved though...

**Todd W** · 01-02-2008, 07:05 PM

I'd go with Amex myself. The business features on the business account are awesome. It shows spending by qrter and you can break it up to where you spent the most overall and also by qrter. There are more features of course too.

**Generalissimo** · 01-03-2008, 03:45 PM

Just received one today. Small limit (£260) but still I can build a credit rating.

**rpanella** · 01-03-2008, 08:18 PM

I had some issues at first as well. I was given advice to go through my bank where I had my savings and checking, and was instantly approved for a 2k limit. After building some credit on it I have had no trouble getting other cards.
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