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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Credit Cards... Does it cost...

108 replies

cjt110 · 29/05/2018 14:42

...just to have one?

My credit rating is pants. I've never had any credit cards or loans in my life. As such, when I go to, for example, get a new mobile phone it tells me my credit rating is poor and I am rejected.

My husband said to apply for a credit card, get it and then cut it up as it will help me improve my credit rating. Applied for a capital one card - am activating online and it's asking me about setting up a direct debit. Surely if I have a card and don't use it, I don't need a direct debit because they won't charge me anything? Or am I being stupid?

OP posts:
MongerTruffle · 30/05/2018 09:25

It seemed that I was being punished for never having borrowed in my life and instead saving til we had money for things...

That's how credit works. Lenders only ever make money if you borrow from them.

BarbaraofSevillle · 30/05/2018 09:54

It seemed that I was being punished for never having borrowed in my life and instead saving til we had money for things

It does seem unfair, but it's simply that they have no information on which to judge, it's how it works these days, it's all about 'computer says yes or no' and much less about having a friendly chat with your local bank manager. I'm not even sure if that sort of bank manager exists any more.

When looking at credit files, they see no difference between someone with lots of money who never needs to borrow and someone who has never borrowed because they know they couldn't pay it back.

Imagine that you had a friend who had borrowed money off you a couple of times and always paid it back when they said they would. They have a decent income, can afford their outgoings but are just a few quid short this month. If they asked to borrow £50 until pay day, and you could afford to lend it, you probably would.

But if an aquaintance where you knew nothing about their finances asked to borrow £50 until payday, you'd probably refuse, even if you could afford to lend the money.

That's how credit ratings work and why the OP is being advised to get a credit card, put a small amount of normal spending on it each month and pay it off in full every month. This simple act can be a gateway to all sorts of advantages such as cheaper hire car, purchase protection, free short term loans, reward points, easier access to mortgages and other products like mobile phone contracts, better current accounts, all sorts of advantages, many of which have nothing to do with borrowing any money.

RockinRobinTweets · 30/05/2018 09:59

Put your petrol (or similar) on it and set up a direct debit to pay off the whole amount. Make sure you’re on the electoral roll to it.

russiandwarf · 30/05/2018 10:12

@cjt110 did you have any luck with info from the phone company? Sorry I didn't mean to panic you with my last post, I just mean these ridiculous things happen. It will get sorted, and at least you have found the reason for the credit refusal. I hope it's resolved soon

Gagastwin · 30/05/2018 10:48

Download clear score app and see why you are being refused credit.
My guess is you are applying for too much, that with the mortgage etc you are already at the maximum you can lend as your use of credit hasn't increased but decreased as you've paid off the mortgage.

Don't keep applying for loans, being denied credit shows up on your credit report and lowers your score.

Clear score app will suggest credit cards or loans that you will get accepted for so it won't harm your credit rating.

cjt110 · 30/05/2018 11:29

russian She hasn't called me back yet. It was supposed to be within the hour....

OP posts:
russiandwarf · 30/05/2018 15:36

How bloody annoying! I would give them another call when you have the time, nothing like harassment to get the job done!

Tina851 · 30/05/2018 16:10

they were talking about credit ratings and clearing the card in full before the statement date and in that context, your posts were confusing and misleading.
As long as each statement is zero, that is fine. But there is a danger here that the OP will spend £20, then pay £20, then spent another £20. A statement is then issued for £20, asking for a minimum payment of £5. The Op thinks 'that's ok, I paid £20, so I won't pay anymore this month'. The OP then defaults, because the £20 she paid was in the previous month's statement period. She then comes on Mumsnet complaining about it, because she is treating her credit card account in the same way as a current account and doesn't understand where she's going wrong because it's never been a problem before.

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