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Chances of getting a low limit credit card?

coldupnorth

I don't 'NEED' a credit card but I'm looking in to getting some form of credit history. I was wondering what my chances were of being eligible for a low level credit card so I get something on my file to show I can manage money.

I'm in receipt of both PIP and ESA(IR).

Has anybody here had any success in applying for a credit card while long term unemployed due to illness? Or are my chances of getting one immediately shot as I can't work?

I'm just looking for something for later down the line on my file to show that I had a CC and I made all the monthly repayments in full.

Thanks.

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Comments

rebel11

It shouldn't be a problem, but does depend on your 'unique' personal circumstances / details. Thing is, you lose nothing in trying.

Hannah_Alumni

@coldupnorth The money expert link stormy posted above is a great way to see if you are eligible. It may be an idea to speak to your bank too.

coldupnorth

stormy said:

I have got them whilst on benefits; but I had a credit history already so Im not sure how much difference that makes. It might be worth having a look on money saving expert and do their "no credit check" thingy to see if you stand a chance.

You can mess up your credit score by just having too many credit checks go through in a short space of time so the "soft check" is the thing to go for.

https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Thanks. I am aware of the difference and importance between soft and hard checks so I have no fully applied for anything just yet. Everything in my history looks good. No CCJs, no debt or loans etc. Never had a CC but feeling it is something I should be trying to get for long term benefits.

coldupnorth

Hannah_Scope said:

@coldupnorth The money expert link stormy posted above is a great way to see if you are eligible. It may be an idea to speak to your bank too.

Thanks. I will contact my bank in the morning to see if they offer a financial advice service.

rebel11

Another thing that might be of interest, are Credit Unions, generally user friendly -

https://www.findyourcreditunion.co.uk/

2oldcodgers

At 74 I've never had a unpaid debt, nor a loan, an overdraft or even a credit card. I only spend money that I have. Why should I get a credit card or other loan facility and end up paying the provider upwards of 35% for the priviledge?
The only card I have is a debit card which is used to spend my own money.

2oldcodgers

stormy said:

2oldcodgers said:

At 74 I've never had a unpaid debt, nor a loan, an overdraft or even a credit card. I only spend money that I have. Why should I get a credit card or other loan facility and end up paying the provider upwards of 35% for the priviledge?
The only card I have is a debit card which is used to spend my own money.

A credit card is a good way to protect yourself as if anything goes wrong with a purchase they can help you get the money back. It also helps build a good credit score and its free if you pay in full each month.

If anything goes wrong it is covered by a warranty and if need be by Trading Standards regulations. I have no idea what a 'good' credit score is and to be honest why do I need to know?

coldupnorth

2oldcodgers said:

At 74 I've never had a unpaid debt, nor a loan, an overdraft or even a credit card. I only spend money that I have. Why should I get a credit card or other loan facility and end up paying the provider upwards of 35% for the priviledge?
The only card I have is a debit card which is used to spend my own money.

Without sounding rude, the world has changed quite a bit. Good look getting a mortgage on benefits with no credit history. I've always been brought up to spend what you have rather than borrow and that's how I've lived my life, without a credit card. With that comes no credit history and problems securing a mortgage

2oldcodgers

coldupnorth said:

2oldcodgers said:

At 74 I've never had a unpaid debt, nor a loan, an overdraft or even a credit card. I only spend money that I have. Why should I get a credit card or other loan facility and end up paying the provider upwards of 35% for the priviledge?
The only card I have is a debit card which is used to spend my own money.

Without sounding rude, the world has changed quite a bit. Good look getting a mortgage on benefits with no credit history. I've always been brought up to spend what you have rather than borrow and that's how I've lived my life, without a credit card. With that comes no credit history and problems securing a mortgage

Why would I want or need to get a mortgage? I am 74 and my wife is 78 and live in our home mortgage free with no intention of buying somewhere else. We decided to down size from a 5 bed detached to a 3 bed semi back in 2003. We have no need to borrow someone else's money at an extortionate rate of interest.

coldupnorth

Why would I want or need to get a mortgage? I am 74 and my wife is 78 and live in our home mortgage free with no intention of buying somewhere else. We decided to down size from a 5 bed detached to a 3 bed semi back in 2003. We have no need to borrow someone else's money at an extortionate rate of interest.

I meant more for people such as myself who were born in a time when houses didn't cost 20k.

coldupnorth

Purrrrrrr said:

I just applied and was accepted for a Capital One CC via the money-saving site

0% for 6 months ( going up 34% after the 6mths. All the other options started at 34% so it seemed the right one ( for now )

My limit is £200. I am going to use it to buy the paint, etc., to redecorate my home and hopefully, once I have paid it off (probably at £50 a mth), I will get a higher limit so I can buy my new flooring by that time my home will be fresh and ready.

Thank you @coldupnorth for giving me the push I needed. I have been saving up for my flooring for a long time now and every time I have enough something expensive turns up. Hopefully, this will help. if I cannot get the limit raised high enough, I can always do one room at a time.

Awesome! Sounds like a plan! Have fun making your house a home!

coldupnorth

2oldcodgers said:

coldupnorth said:

2oldcodgers said:

At 74 I've never had a unpaid debt, nor a loan, an overdraft or even a credit card. I only spend money that I have. Why should I get a credit card or other loan facility and end up paying the provider upwards of 35% for the priviledge?
The only card I have is a debit card which is used to spend my own money.

Without sounding rude, the world has changed quite a bit. Good look getting a mortgage on benefits with no credit history. I've always been brought up to spend what you have rather than borrow and that's how I've lived my life, without a credit card. With that comes no credit history and problems securing a mortgage

Why would I want or need to get a mortgage? I am 74 and my wife is 78 and live in our home mortgage free with no intention of buying somewhere else. We decided to down size from a 5 bed detached to a 3 bed semi back in 2003. We have no need to borrow someone else's money at an extortionate rate of interest.

I meant more for people such as myself who were born in a time when houses didn't cost 20k.

2oldcodgers

coldupnorth said:
I meant more for people such as myself who were born in a time when houses didn't cost 20k.

My first 2 bed new end terrace just outside Bristol cost £5750 in 1972
Then moved to Swansea and bought a 3 bed detached bungalow in a small village outside Swansea for £5500 in 1975
In addition I also bought a modernised 19th C cottage in Swansea for somewhere to stay during the week for £8750
The first time I bought a property that cost more than £20,000 was in 1988 when I moved to the South of England. Paid £100,000 for 4 bed detached house which had far reaching countryside views to the front with the beach behind via my own private path to it.

Steve_in_The_City

The 70's were a time of the haves and have not's. Society was well divided, and what's changed? A studio flat here in central London will cost on average £1,400 pcm, plus utilities and council tax. The people who own these flats are wealthy, the people who rent them are desperate. A room in a flat can cost well upwards of £150 pw.

People on benefits won't get a mortgage. People on low incomes can get a high % credit card, and if used wisely will lead to better credit cards with a lower %. It takes a bit of time, but it is to your advantage.

We live in a modern world and for various reasons you do need to have a cc. I have got 3, all low %. I don't really need them, never pay interest, but I have to look to the future where a time may come that I do need credit.

2oldcodgers

Steve_in_The_City said:

but I have to look to the future where a time may come that I do need credit.

Credit is simply borrowing your future income. Personally at 74 I have never needed to borrow anything and certainly not money. Even our homes were originally purchased out of savings. Subsequent ones were bought out the profit from the previous sale.
Take cars. I have just sold my car for the same price that I paid for it two years ago.
Using credit to me is a sign of an inability to budget properly.

2oldcodgers

Purrrrrrr said:

2oldcodgers said:

Steve_in_The_City said:

but I have to look to the future where a time may come that I do need credit.

Credit is simply borrowing your future income. Personally at 74 I have never needed to borrow anything and certainly not money. Even our homes were originally purchased out of savings. Subsequent ones were bought out the profit from the previous sale.
Take cars. I have just sold my car for the same price that I paid for it two years ago.
Using credit to me is a sign of an inability to budget properly.

Respectfully. As has been said a number of times. What you and I did back in the day is no longer relevant in this day and age.
CC, loans and anything on the never-never always had a bad rep with the old people and some still carry that on in today's world even though they would have been young back then.

Times have changed it's not the same anymore. Once again you need a good credit rating to do so many things these days. Even getting a job could depend on your credit rating.

No you are so right. Currently this country and the attitude of some who live here is something not to be desired. England does not feel like my home country anymore.
Thank goodness that I am too old now to want or consider working for a living. I jumped ship when 60 (2009) with a promise made that I would never be beholden to any employer again. Doing voluntary work instead is fine - did that until earlier this year.
So as you see I have no need for credit of any type.

Steve_in_The_City

I find myself convulsed with laughter!!!

OverlyAnxious

I've never had a credit card but have an excellent credit score. Currently 993 out of 999. I know it's not the same as the rating the banks can see, but must be a fairly good indication?

I can't imagine ever being able to mortgage a property on benefits myself. Had enough trouble trying to rent a place since being on benefits. I do keep an eye out for forum threads about mortgages on benefits but haven't seen many so far.

OverlyAnxious

Purrrrrrr said:

OverlyAnxious said:

I've never had a credit card but have an excellent credit score. Currently 993 out of 999. I know it's not the same as the rating the banks can see, but must be a fairly good indication?

I can't imagine ever being able to mortgage a property on benefits myself. Had enough trouble trying to rent a place since being on benefits. I do keep an eye out for forum threads about mortgages on benefits but haven't seen many so far.

How did you get good credit without getting credit? Or did you get other types of credit? I've always saved up and paid cash for everything. Im not sure if you could get a mortgage on benefits but I expect if you lived in a place with right to buy and you had a very good discount then its very possible,

I really don't know where the score came from. I'm trying to find out as I keep hearing about the need for a credit card to boost a credit rating, which just hasn't been my experience at all.

I've never had any credit that I know of, no loans, no overdraft, not even a mobile phone contract. I do pay a few bills via monthly direct debit if that counts.

2oldcodgers

As a matter of interest I have just checked my credit rating through MoneySuperMarket and it has come back as 607 out of 710 saying my report is excellent!!
No idea why