Planetarion Forums - I now have a new credit card... are they insane!

pyirt · 14 Jul 2004, 22:17

Applied for another random credit card, as it happens in the post. Two months later I get the card and activate it , ACE! This is truely amazing given the number of credit defaults I`ve had in the past. Don`t they know how dangerous/risky I am? Are they insane?

PS: only £200 credit limmit

Kurashima · 14 Jul 2004, 22:23

The fact your limit is only £200 tells me that they know about your history.

Even the most basic one we offer has a £500 limit. Most people have overdrafts bigger than your credit card limit ffs.

Quazi Starbucks · 14 Jul 2004, 22:29

Quote:

Originally Posted by Kurashima

The fact your limit is only £200 tells me that they know about your history.

Even the most basic one we offer has a £500 limit. Most people have overdrafts bigger than your credit card limit ffs.

2250 overdraft here
1000 limit about 100 on it

pyirt · 14 Jul 2004, 22:39

Quote:

Originally Posted by Kurashima

The fact your limit is only £200 tells me that they know about your history.

Even the most basic one we offer has a £500 limit. Most people have overdrafts bigger than your credit card limit ffs.

Well, nice enough to have a card from them though. Be able to buy new rear tyre for meh motorcycle; long over due. Safety First!

JammyJim · 14 Jul 2004, 23:05

you do realise its not actually your money? you owe the bank and as a result you wont amount to a hill of beans in life unless all your debt is magically made to dissapear?

Deffeh · 14 Jul 2004, 23:08

my advice : gamble furiously

( £25 On a brazil chile double tonight btw)

Stew · 14 Jul 2004, 23:09

I had to buy a new tyre the other day - £63 ffs!

Anyway - JJ stop being the KillJoy! Let the man play with "his" money.

JammyJim · 14 Jul 2004, 23:14

i dont understand the whole 'LETS BORROW MONEY UNTIL IM NECK DEEP IN DEBT THEN WORRY ABOUT THE CONSEQUENCES. MEAN WHILE ILL BUY SOME NICE CLOTHES AND A FEW CDS

HURRAH!"

Knight Theamion · 14 Jul 2004, 23:25

i am with james on this one

rageybabey · 14 Jul 2004, 23:30

I got a $1000 limit credit card - preapproved and all that. Because the interest rate was so high but I still wanted to build credit, I was paying off the balance every month...then I got a bill for $630 and some change. Yeah....I paid it off that month but I leave it at home a lot now.

Kurashima · 14 Jul 2004, 23:32

Quote:

Originally Posted by rageybabey

I got a $1000 limit credit card - preapproved and all that. Because the interest rate was so high but I still wanted to build credit, I was paying off the balance every month...then I got a bill for $630 and some change. Yeah....I paid it off that month but I leave it at home a lot now.

How exactly do you suddenly get invoiced for $630 if youre paying off the monthly amount every month anyway?

Stew · 14 Jul 2004, 23:33

Oooooooooh ****, I just remembered I forgot to pay off the bill last month - all £1 of it (it was interest after I paid the month before late!) - bet I still get loads of interest though!

rageybabey · 14 Jul 2004, 23:38

Quote:

Originally Posted by Kurashima

How exactly do you suddenly get invoiced for $630 if youre paying off the monthly amount every month anyway?

Is it really that complicated? I spent $630 on it in one month...

My first statement was like almost $200 and the second one was about $300 and then the third one was $630 cuz I had to put a bunch of crap on there like Lamaze classes and shit.

The next one should be about $200 I think - just using it to pay for our cellphones now.

Dante Hicks · 14 Jul 2004, 23:38

Just run up loads of debts and then declare bankruptcy.

Kurashima · 14 Jul 2004, 23:39

Quote:

Originally Posted by rageybabey

Is it really that complicated? I spent $630 on it in one month...

So for that month, you pay off the interest amount , or slightly more. Theres no real need to pay the entire amount at once unless youre really a big fan of eating Bread and Water for a month.

rageybabey · 14 Jul 2004, 23:44

It wasn't a big deal to pay it off finance wise. It was just more than I was expecting to have put on it in just 4 weeks. We don't have an "interest amount" - if you don't pay off the whole thing you get charged interest on whatever's left...and the rate on this card is like 21% which is ridiculous but it's the only card I have right now. I'm trying to get approved for one with a lower rate like 8% or something. My credit is really good but I've only been in the US for 1 1/2 years since turning 18 - I was living in the UK for the first 2 years I could've started building up any credit.

Knight Theamion · 14 Jul 2004, 23:46

why dont you just like erm, only buy and pay for with money you have?

rageybabey · 14 Jul 2004, 23:48

Because when you're about to have a baby the money you have isn't enough.

JammyJim · 14 Jul 2004, 23:49

i can understand building up a good credit history.

i.e. you can afford it and you do have the available funds but you CHOOSE to spread payments over time because you need some kind of history when purchasing a house or car or looking to finance something wildly expensive.

however
getting yourself in debt just for the sake of it is one of the dumbest things you can ever do in the history of dumb things to do.

rageybabey · 14 Jul 2004, 23:52

Well one thing that pissed me off was the lady at the hospital told me that the Lamaze classes had to be paid for over the phone right away and it was $100. So I said fine ok and paid on my card but then when the confirmation letter arrived it said "You can pay by check, cash, credit card, etc. within 10 days of your first class."

****er.

My credit is really excellent though so I'm not worried about that one ****up for $600... I think I can do some kind of balance transfer once I get approved for my new card with the low rate. Then I can just tear up the 21% card.

Rids · 14 Jul 2004, 23:59

Quote:

Originally Posted by JammyJim

i can understand building up a good credit history.

i.e. you can afford it and you do have the available funds but you CHOOSE to spread payments over time because you need some kind of history when purchasing a house or car or looking to finance something wildly expensive.

however
getting yourself in debt just for the sake of it is one of the dumbest things you can ever do in the history of dumb things to do.

I for example have 2 credit cards with a £2500 limit, an overdraft limit of £1500 and am constantly being bombarded with offers for more cards. I have about £1600 of a loan outstanding, but this is being paid off steadily to the tune of £100 a month.

The reason I have these credit cards, is not so I can get myself into debt by spending retardly. They are, as you say, handy in building up a good credit history, and also I see it as emergency money. If I ever get myself into some kind of completely screwed up situation where I need to be able to raise money fast, I am able to get it.

rageybabey · 15 Jul 2004, 00:05

Yeah see, that's what they're good for. Also mine has a $200 cash advance on it so if I need $200 cash for anything or I'm low in the bank and need to deposit some money right away I can use it for that. It's mostly for emergencies or things that don't take checks like online shopping.

I've heard recently though that "soft-pulls" on your credit history, which is what is done when a credit card company pulls your info and then sends you an offer for their card, can actually damage your credit report. Not a lot or anything but it shows as someone trying to access your credit history and too many of those show up like you're applying for cards and getting rejected which isn't good. I've been turned down for certain cards b/c they think I've been rejected by other places when really these other ****ers are just bugging me to have their card and I don't want it and never asked about it in the first place.

Knight Theamion · 15 Jul 2004, 00:06

'save money up, it even grows then!'

rageybabey · 15 Jul 2004, 00:09

Saving money in a piggy bank while writing "sophisticated" haiku about you wanting to get off with a girl won't make it easy for you to buy her a house when you've knocked her up with triplets.

You need good credit for that.

Do you still live with your parents btw...(random)...?

Stew · 15 Jul 2004, 00:10

Your having triplets?!?

Knight Theamion · 15 Jul 2004, 00:12

Quote:

Originally Posted by rageybabey

Saving money in a piggy bank while writing "sophisticated" haiku about you wanting to get off with a girl won't make it easy for you to buy her a house when you've knocked her up with triplets.

You need good credit for that.

Do you still live with your parents btw...(random)...?

nah, living on my own (freddy mercury!) and having a great time.

rageybabey · 15 Jul 2004, 00:14

Quote:

Originally Posted by Stew

Your having triplets?!?

I better ****ing not be.

Kurashima · 15 Jul 2004, 00:35

Quote:

Originally Posted by rageybabey

It wasn't a big deal to pay it off finance wise. It was just more than I was expecting to have put on it in just 4 weeks. We don't have an "interest amount" - if you don't pay off the whole thing you get charged interest on whatever's left...and the rate on this card is like 21% which is ridiculous but it's the only card I have right now. I'm trying to get approved for one with a lower rate like 8% or something. My credit is really good but I've only been in the US for 1 1/2 years since turning 18 - I was living in the UK for the first 2 years I could've started building up any credit.

This , strangely , is why Credit Cards get a bad rep. People dont understand APR and rarely read their terms and conditions.

Your $640 , had you not paid it , would have indeed attracted interest. 21% APR means that each month , you pay 21% divided by 12 months, on the average balance. So to pay the interest that month, youd have paid around $18 , not the 21% you think youd be paying. Christ , if they used those terms, not even crackheads on welfare would touch the things.

Best Bet : Use your card, but not excessively. Allow the banks system to see you as a regular, but sensible user of the card. This builds your credit score within the bank, and eventually, theyll come to you and offer you the card you want. If you apply repeatedly, it shows on your records and counts against you when they look at further lending and card applications (*hint - This can hurt you on a mortgage application as well).

Amusing Sidenote : Did you know that if a Graduate with a £30k a year job and his own house was to apply for credit, and an office pleb with a £12k a year job that lives with his parents applied for credit, the office pleb is more likely to get unsecured lending than the Graduate due to , in the banks eyes, a lower monthly set of outgoings, and thus less risk.

The graduate however will piss on the pleb in terms of lending if he asks for secured lending on his house. The pleb wouldnt even get an account review if he asked for a mortgage.

Kurashima · 15 Jul 2004, 00:40

Quote:

Originally Posted by Rids

I for example have 2 credit cards with a £2500 limit, an overdraft limit of £1500 and am constantly being bombarded with offers for more cards. I have about £1600 of a loan outstanding, but this is being paid off steadily to the tune of £100 a month.

The reason I have these credit cards, is not so I can get myself into debt by spending retardly. They are, as you say, handy in building up a good credit history, and also I see it as emergency money. If I ever get myself into some kind of completely screwed up situation where I need to be able to raise money fast, I am able to get it.

Now this puzzles me.

I have a £5000 personal loan. A £1000 credit card. A £250 overdraft. I pay around £140 a month on the loan, i service the overdraft, and i stick £100 a month onto the credit card. I know from reading the system that my credit rating according to the bank, is ****ing awesome (high salary, stays with parents, meets monthly repayments on time, every month, and has done for 2 years).

I next to never get "Please take a new credit card with us"

Its got to be a London and the South East thing. The IOM Post isnt big on huge mailshots, and tend to charge big companies large amounts to do so, hence "Spam" mail never comes here. I dont actually want or need any credit, its just one of those little flaws in the system i see every so often.

Sandsnake · 15 Jul 2004, 01:18

you forgot the other bit, Kura. By not letting it roll over, she's not actually building credit. There's nothing to report, so they don't. (or at least, it's nowhere near as useful to simply have a credit card)

Demon Dave · 15 Jul 2004, 02:38

i keep getting pestered by the barclaycard people everytime i walk through the shopping centre, i'm not even 18

Event_Horizon · 15 Jul 2004, 03:03

Paying interest is like pissing your money away, but I suppose sometimes you can't help it....

Tomkat · 15 Jul 2004, 05:36

I don't really understand the whole credit rating thing.

I recently got nasty letters from my bank telling me off as I'd gone over my overdraft, and telling me to snip up my card and send it to them. I phoned and it's sorted now, I have to pay it off by a certain date.

Will that have affected my rating? As it was on a Switch card with Natwest, and a VISA with Barclays... neither of which is a credit card (VISA debit...).

And how long, roughly, does it take to earn a "good" rating from a bad rating?

MrL_JaKiri · 15 Jul 2004, 07:47

Quote:

Originally Posted by Kurashima

you pay 21% divided by 12 months, on the average balance.

Not quite, but then we're into the weird and wonderful world of logarithms.

Dante Hicks · 15 Jul 2004, 08:58

Quote:

Originally Posted by Tomkat

Will that have affected my rating? As it was on a Switch card with Natwest, and a VISA with Barclays... neither of which is a credit card (VISA debit...).

I'm sure Kura will be able to tell you more comprehensively but I don't think so. It affects how that individual institution sees you (i.e. if you ask for your overdraft to be extended they'll look at the history of your account, how many times you've gone over your limit, bounced payments, etc) - but I think they only pass this information externally if you default on the account.

An overdraft isn't a credit agreement (I think) in the same fashion as a credit card, loan, etc - because there's no repayment schedule.

As I've said before, they look at things like how "late" you've been paying back existing credit, outstanding balances with other credit agreements, that sort of thing.

In terms of how quickly things can go wrong, it depends. If you default on a bank account (or other loan or whatever) and you get a County Court Judgement (CCJ) listed against you, that can mess your credit rating up pretty badly. But it usually takes a while to get to that stage. If you're clever (i.e. make arrangements with your creditors) then you can hold things off for a while.

Vermillion · 15 Jul 2004, 14:49

I won't comment on the limit on my Platinum card cause that would just be showing off, but then I am older semi-respectable professional guy, so its not that uncommon.

If you want to fix your credit rating, hide your card, then bring it out and buy something (anything, no matter how small) every 2 months or so and pay the balance instantly. Credit card companies love that.

I know this because in my (much) younger days somebody sent me a new credit card, I was just entering Uni and had no real idea, and I reaced to my new card with the comment: "WOOP!! Free alcohol!"

Took me a while to pay that one down...

meglamaniac · 15 Jul 2004, 14:59

I've gone over my overdraft limit before (well duh, student). The bank didn't have a problem with it, and they still increased it the next year like they would when I initially opened the account (which was based on me being a good boy).

I also have a credit card which was hardly used at all until I had to insure my car, and then I used it to pay for the deposit on that - so i think i'm probably one of the more responsible credit card users. I certainly wouldn't go buying clothes/cds/games/a new computer or whatever with it.

Rids · 15 Jul 2004, 15:17

Quote:

Originally Posted by meglamaniac

I also have a credit card which was hardly used at all until I had to insure my car, and then I used it to pay for the deposit on that - so i think i'm probably one of the more responsible credit card users. I certainly wouldn't go buying clothes/cds/games/a new computer or whatever with it.

I have no problem buying clothes, CDs, etc, in the middle of the month with my credit card, for me it makes sense. I could do it on my debit card, and have the money go from my account straight away, possibly pushing me into overdraft if I'm having a bad month etc, or I can do it on my credit card, leave them on there for about 14 days, and pay it off at the end of the month.

JammyJim · 15 Jul 2004, 17:42

Quote:

Originally Posted by Vermillion

I won't comment on the limit on my Platinum card cause that would just be showing off, but then I am older semi-respectable professional guy, so its not that uncommon.

If you want to fix your credit rating, hide your card, then bring it out and buy something (anything, no matter how small) every 2 months or so and pay the balance instantly. Credit card companies love that.

I know this because in my (much) younger days somebody sent me a new credit card, I was just entering Uni and had no real idea, and I reaced to my new card with the comment: "WOOP!! Free alcohol!"

Took me a while to pay that one down...

platinum is usually 50k isnt it?
or 25k depending on the bank.

Vermillion · 15 Jul 2004, 19:22

Quote:

Originally Posted by JammyJim

platinum is usually 50k isnt it?
or 25k depending on the bank.

It depends on the bank and on the person, and on the type of platinum card. My Uncle for example has a medical platinum card which has no credit limit at all. (drool) he could buy Bolivia if he wanted to.

I have a government of Canada Platinum card which has a... shall we say very high limit, one that if I maxed out I would be pooched trying to pay back...

NEWSBOT3 · 15 Jul 2004, 19:30

Quote:

Originally Posted by Vermillion

I know this because in my (much) younger days somebody sent me a new credit card, I was just entering Uni and had no real idea, and I reaced to my new card with the comment: "WOOP!! Free alcohol!"

Took me a while to pay that one down...

you too eh :P

Kurashima · 15 Jul 2004, 20:28

Quote:

Originally Posted by Vermillion

It depends on the bank and on the person, and on the type of platinum card. My Uncle for example has a medical platinum card which has no credit limit at all. (drool) he could buy Bolivia if he wanted to.

I have a government of Canada Platinum card which has a... shall we say very high limit, one that if I maxed out I would be pooched trying to pay back...

Theyve calculated it based on your salary, and the monthly repayment IF you maxed it out being achievable on said salary. As you say, if you maxed it, you couldnt pay it off, but, youd make the minimum repayment for the month with ease i reckon.

Stew · 15 Jul 2004, 22:59

Quote:

Originally Posted by JammyJim

platinum is usually 50k isnt it?
or 25k depending on the bank.

Thats bollocks. (no offence)
Platinum card usually means you are a shareholder of the bank - at least thats why my mum got hers.....

Kurashima · 15 Jul 2004, 23:30

Quote:

Originally Posted by Stew

Thats bollocks. (no offence)
Platinum card usually means you are a shareholder of the bank - at least thats why my mum got hers.....

Nope , JJ is right , alas , youre talking Bollocks Stew

Platinum Cards are generally issued to premier bank customers, with annual salaries of upwards of £50,000. If youre earning £50-£100k a year, the bank will usually offer you one with a yearly fee. If youre earning in excess of £100k a year, the bank will give it to you for free and probably throw in a bunch of extras to get you to sign up for it.

At least, thats how we work it

Stew · 15 Jul 2004, 23:36

Quote:

Originally Posted by Kurashima

Nope , JJ is right , alas , youre talking Bollocks Stew

Platinum Cards are generally issued to premier bank customers, with annual salaries of upwards of £50,000. If youre earning £50-£100k a year, the bank will usually offer you one with a yearly fee. If youre earning in excess of £100k a year, the bank will give it to you for free and probably throw in a bunch of extras to get you to sign up for it.

At least, thats how we work it

Thats not how Halifax work it.

Dante Hicks · 15 Jul 2004, 23:46

Quote:

Originally Posted by Stew

Thats not how Halifax work it.

For most banks Platinum is just a Super Gold Card, with a Gold Card being a super vanilla credit card. It's just marketing to make high profile customers feel like they have massive cocks.

Halifax might be different (can't see an application for Platinum on their website).

Kurashima · 16 Jul 2004, 00:41

Quote:

Originally Posted by Stew

Thats not how Halifax work it.

It is how HSBC work it.

Additionally , if youre earning over £100k a year, youll be assigned a relationship manager, whos job it is to keep high value customers happy and with the bank.

Phil^ · 16 Jul 2004, 01:57

£150 overdraft. no cc :/

Rids · 16 Jul 2004, 08:37

I recieve 'offers' for Platinum credit cards all the time. These 'Platinum' cards are shite little £1500 limit things with interest rates so high that'd I'd be scared to let more than 20p rollover on them. 'Platinum' is just another word to trap mugs who think they're better than anybody else because they have a Platinum card these days. The real proof of how good a customer you are is in your limit, or lack of one.