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No one will give a youngster a credit card

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  • 24-04-2014 1:16pm
    #1
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭


    Pay my tesco one off every month, have various bills in my name, no missed payments, yet KBC, AIB and BOI have all turned me down, there is a severe lack of credit card providers in this country


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Cucking Funt wrote: »
    Pay my tesco one off every month, have various bills in my name, no missed payments, yet KBC, AIB and BOI have all turned me down, there is a severe lack of credit card providers in this country

    There is plenty of credit card providers out there. KBC, AIB, BOI, UB, PTSB, Tesco and more. If you are getting refused by all there is probably a better reason there. Do you have decent income? How is your credit rating?


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    #3
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    chris85 wrote: »
    There is plenty of credit card providers out there. KBC, AIB, BOI, UB, PTSB, Tesco and more. If you are getting refused by all there is probably a better reason there. Do you have decent income? How is your credit rating?

    Credit rating should be fine, is it worth checking in case there is something amiss?

    Daycent as in 21gs


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    #4
    Zymurgist
    Registered Users Posts: 531 ✭✭✭Zymurgist


    Are you looking for an additional credit card to your Tesco one? If so i'm not surprised the banks are reluctant to take you on as 21k is not really a great wage to support the debt that could be racked up on two credit cards.

    Approaching Tesco and asking themto add an extra 500/1000 euro on to your limit might be a more sensble approach, as you already have the relationship with them, and they have record of you paying your bills on time etc


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    #5
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    Zymurgist wrote: »
    Are you looking for an additional credit card to your Tesco one? If so i'm not surprised the banks are reluctant to take you on as 21k is not really a great wage to support the debt that could be racked up on two credit cards.

    Approaching Tesco and asking themto add an extra 500/1000 euro on to your limit might be a more sensble approach, as you already have the relationship with them, and they have record of you paying your bills on time etc

    Already done, just looking to build my credit standing tbh


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    #6
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    Zymurgist wrote: »
    Are you looking for an additional credit card to your Tesco one? If so i'm not surprised the banks are reluctant to take you on as 21k is not really a great wage to support the debt that could be racked up on two credit cards.

    Approaching Tesco and asking themto add an extra 500/1000 euro on to your limit might be a more sensble approach, as you already have the relationship with them, and they have record of you paying your bills on time etc

    Is it worth checking the Irish Credit Bureau to see if there is anything amiss?


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    #7
    Sleephead
    Registered Users Posts: 156 ✭✭Sleephead


    Cucking Funt wrote: »
    Is it worth checking the Irish Credit Bureau to see if there is anything amiss?

    €6 well spent i would suggest.

    Errors are possible and can be corrected.

    For me though its probably because of your existing card showing up in your score.


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    #8
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    Sleephead wrote: »
    €6 well spent i would suggest.

    Errors are possible and can be corrected.

    For me though its probably because of your existing card showing up in your score.

    What else can i do to improve my credit score?


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    #9
    Sleephead
    Registered Users Posts: 156 ✭✭Sleephead


    Check that it is clean firstly.

    Then just keep meeting your commitments over time.


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    #10
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Cucking Funt wrote: »
    What else can i do to improve my credit score?

    Having two credit cards going I cant see helping your credit rating. If you go to a bank in next few years looking for a loan they would have to wonder why you need two of them, especially if you are not needing them.


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    #11
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    chris85 wrote: »
    Having two credit cards going I cant see helping your credit rating. If you go to a bank in next few years looking for a loan they would have to wonder why you need two of them, especially if you are not needing them.

    On the basis that youve had X amount of credit available to you and were able to manage it


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    #12
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    Cucking Funt wrote: »
    On the basis that youve had X amount of credit available to you and were able to manage it

    You don't need multiple credit cards to achieve that. Most people who have more than one card do so in order to segregate personal spending from business expenses that they can claim back from their employer or on which they can claim tax relief if they're self-employed.

    On your salary frankly I can't see how you could justify a second card. The banks who have refused you have probably figured that you've asked Tesco to increase your credit limit and they refused and that's why you're looking to get another card.

    The other suspicion they may have is that you have a secret spending habit like online gambling which you don't want your other half to know about.


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    #13
    Pro Hoc Vice
    Closed Accounts Posts: 6,087 ✭✭✭Pro Hoc Vice


    Cucking Funt wrote: »
    On the basis that youve had X amount of credit available to you and were able to manage it

    Banks look at available credit, banks also look at why someone on 21k is looking for the most expensive credit available. If as you say you pay your credit card off every month why do you need another is what the bank will ask, they may assume its short term credit is what you want. I would guess if you looked for a loan equivalent to the credit limit of a second card you may get say a €5k loan over 2 years, but not a 5k credit card.


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    #14
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    Getting a second credit card will in no way help your case when applying for anything to bank, in fact more likely a disadvantage.


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    #15
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    phormium wrote: »
    Getting a second credit card will in no way help your case when applying for anything to bank, in fact more likely a disadvantage.

    I disagwee


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    #16
    ravima
    Registered Users Posts: 848 ✭✭✭ravima


    If you applied to all the others you mentioned in o/p at the same time, it might have raised a red flag!


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    #17
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    You are perfectly entitled to disagree but my opinion comes from a lifetime spent in banking, the bulk of it in lending.


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    #18
    Yggr of Asgard
    Registered Users Posts: 5,224 ✭✭✭Yggr of Asgard


    With the rudimentary way the ICB tracks credit cards having a credit card does not show that you have a track record in handling your finance in the extend that you might think.

    Because it only tracks if you paid in time (and that could have been the minimum) and what the available limit and current balance is at the last notification date (not over time). Unlike other credit reference agencies in the world they do not track your monthly balance or payment due/paid amount, so all someone will see your available credit and payment history.

    Having a 2nd card on your account is just going to show a new total available credit line and hence it increases the lending risk as you could simply max out all available lines of credit and than stop paying.

    So a potential new bank you apply for can quickly determine that your available credit line is more than they are willing to to extend to you and hence they won't give you additional credit lines. It won't show them that you pay back full every month, nor will it show them how much you actual spend.

    Available credit card limits are not as positive as people might think.

    In addition if you go on an application spree both scoring models used by ICB will give you a lower score as the times you asked for credit has a negative effect on the score. The same is the case if you have multiple accounts (even if these are in order), it might depending on the usage bring your score down not up if these account are relatively new, only multiple accounts open for a long time bring the score up. Loads of new accounts in a short time bring the score down.

    Now lenders don't rely solely on the ICB score, they also do their own scoring but a low ICB score is a contributing factor in their decision.

    If you want to build a sustainable record for future lending, than a loan might be a better way as it shows better that you can pay back what you commit too than an available credit line in credit cards. Also having a regular savings account with your bank will be better when you go for a mortgage for example.


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    #19
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    phormium wrote: »
    You are perfectly entitled to disagree but my opinion comes from a lifetime spent in banking, the bulk of it in lending.

    Fair enough lad, from what i read on the interwebs, albeit USA orientated I thought this was the case


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    #20
    PinkLemonade
    Closed Accounts Posts: 768 ✭✭✭PinkLemonade


    Cucking Funt wrote: »
    Fair enough lad, from what i read on the interwebs, albeit USA orientated I thought this was the case

    The US system and the Irish system are very different


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    #21
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    PinkLemonade wrote: »
    The US system and the Irish system are very different

    How so? I will be looking for a mortgage in the next 3 or so years and want to build up credit, it seems ridiculous that they dont care about the savings i built up


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    #22
    jhegarty
    Registered Users Posts: 6,440 ✭✭✭jhegarty


    Cucking Funt wrote: »
    How so? I will be looking for a mortgage in the next 3 or so years and want to build up credit, it seems ridiculous that they dont care about the savings i built up


    The Irish system only cares about missed payments on loans and credit cards. Some banks don't even record your loans or credit card with the ICB until you miss a payment.

    Saving are complete different and don't appear on your credit report.


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    #23
    Marcusm
    Registered Users Posts: 10,320 ✭✭✭✭Marcusm


    Cucking Funt wrote: »
    How so? I will be looking for a mortgage in the next 3 or so years and want to build up credit, it seems ridiculous that they dont care about the savings i built up

    If you have large amounts of available credit (even unused) it will count against you in that the bank will see it as a potential risk - you might rack up a credit card bill for furniture, for example, and become overexposed.

    Having a well managed credit card account is a positive. Having access to too much credit is a negative. What is the limit on the Tesco card; it it's greater than 4k, I'd think it too large for a 21k income level when considering you for extra credit.

    As regards savings, you provide evidence via your bank accounts not an ICB report.


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    #24
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    You want a nice clean current account, living within your means, no referral fees or gambling transactions, no debt. Good regular savings record, evidence of rent payments if applicable and permanent job.

    That's about as much as you can do to make you the best possible candidate, your income is low though and based on the banks way of calculating which is based on net disposable income rather than multiples of income the amount left over to fund repayments after they have deducted what they consider reasonable living expenses may not give you much of a mortgage, what sort of purchase price do you think you will be looking at?


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    #25
    Cucking Funt
    Banned (with Prison Access) Posts: 96 ✭✭Cucking Funt


    phormium wrote: »
    You want a nice clean current account, living within your means, no referral fees or gambling transactions, no debt. Good regular savings record, evidence of rent payments if applicable and permanent job.

    That's about as much as you can do to make you the best possible candidate, your income is low though and based on the banks way of calculating which is based on net disposable income rather than multiples of income the amount left over to fund repayments after they have deducted what they consider reasonable living expenses may not give you much of a mortgage, what sort of purchase price do you think you will be looking at?

    200k max, about 90% LTV, salary should double in 3 years time, i guess I will keep saving anyway, thanks for all your advice everyone


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    #26
    Pro Hoc Vice
    Closed Accounts Posts: 6,087 ✭✭✭Pro Hoc Vice


    Cucking Funt wrote: »
    200k max, about 90% LTV, salary should double in 3 years time, i guess I will keep saving anyway, thanks for all your advice everyone

    There is no way you will get 200K based on 42K a year. The max would be 120 to 130, based on 3 times borrowers salary. If married then a second income makes a difference. But to any one young in a relatively low paying job I say WTF are you think about buying a house, plan for the future by all means, but this kinda stuff makes me fear for 10 to 15 years time. By all means save as much as you can.


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    #27
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    What job do you have that will double your salary in 3 years?


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    #28
    Pablo1802
    Registered Users Posts: 216 ✭✭Pablo1802


    jhegarty wrote: »
    The Irish system only cares about missed payments on loans and credit cards. Some banks don't even record your loans or credit card with the ICB until you miss a payment.

    All irish credit card accounts are reported to ICB from 2013.


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    #29
    Tow
    Registered Users Posts: 7,415 ✭✭✭Tow


    Cucking Funt wrote: »
    I disagwee

    Not in this county. We don't have a 'Credit Score' system the same way country's do. ICB tracks defaults, and just because your have a credit cards or a paid off loan does not mean you will even have a record with them, but miss a couple of payments and you will... When you apply for a loan/mortgage the bank will want to see a full record and history of savings and any cards being fully paid off on a regular (pref every month) basis. You will need to produce at least 6 months of bank statements for his. You will need to explain anything out of the ordinary on the statements. Any existing loans and signs of gambling are a negative.

    When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?



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    #30
    V.W.L 11
    Closed Accounts Posts: 1,586 ✭✭✭V.W.L 11


    What does pre approval mean???is it yes you got it or what???i got pre approval once before and was granted my requested service


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    #31
    Yggr of Asgard
    Registered Users Posts: 5,224 ✭✭✭Yggr of Asgard


    Tow wrote: »
    Not in this county. We don't have a 'Credit Score' system the same way country's do. ICB tracks defaults, and just because your have a credit cards or a paid off loan does not mean you will even have a record with them, but miss a couple of payments and you will... When you apply for a loan/mortgage the bank will want to see a full record and history of savings and any cards being fully paid off on a regular (pref every month) basis. You will need to produce at least 6 months of bank statements for his. You will need to explain anything out of the ordinary on the statements. Any existing loans and signs of gambling are a negative.

    I'm sorry but as far as Credit Scores goes, you are wrong.

    The ICB produces 3credit scores that it transmits with an inquiry to lenders, two based on the CRIF (Italian based) and one based Fair Isaac (US Based) with Fair Isaacs variant being the deadly Global FICO Score (GFS).

    It might be that lenders don't use the score when they get it but the ICB is developing into the same monster that the credit reference agencies are in the US or the Schufa in Germany.


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