It's because you don't have what's called a "credit rating". You need to have had some sort of loan or HP etc, so that companies can see that you've handled your finances carefully and not got into any financial difficulty. An overdraft facility can sometimes be handy, even if it's never used.

I no we have the same probs everytime we do our mortgage, but I am very old fashioned in my ways and just don't like the idea of loans and overdrafts, the person on the end of the phone suggested I apply for couple more credit cards to make myself look a bit better credit wise sonds crazy to me!!!, and they wonder why our economy is the way it is.

If you already have the full amount saved, couldn't you just transfer the cash into your current account and settle the full amount via your debit card? As long as the deposit was paid on your credit card you'll still get the full protection that goes with that. If it wasn't, pay a minimum of £100 of the balance on your credit card now and the rest against our debit card and you'll still get the same protection. Remember, a lot of TOs/TAs will charge a supplement for using a credit card so it will be cheaper to use your debit card for as much as you can afford over and above th £100 needed to give you peace of mind.

SM

Sound advice SMA.

Talking about credit cards I applied for the Thomas Cook card a couple of weeks ago as I need to pay off my TC hol and don't fancy paying the usual %fee for using my usual Credit card. I was suprised when I was declined but thought it may have been because I only work a 30 hour week and my pay isn't that good. Hubby consequently applied as he works full time with an everage wage. He was also turned down. I was feeling sick by now wondering if our Credit rating had fallen for some reason We don't owe anything and have always paid loans and cards on time. I wasn't having this so I paid to do a credit check for hubby and me- Surprise, surprise, we came out with a top score - it even stated that most of the country would like a credit score like ours That set my mind to rest but still am wondering why Thomas Cook turned us down.

I'm quite synical on this and am wondering if they are holding out for me to pay the fee as they know I paid the deposit with another card. Just a thought!

Thanks for your advice, paid the balance last week on my normal bank card, I just was'nt sure at the time if I was fully covered, but after looking in to some old posts found out that I was, as I had previously paid deposit on credit card!!

The reason why so many of you are getting turned down isn't anything to do with your credit rating as such. Banks and loan companies are concerned many of us owe to much to them. So they are stopping a lot of people getting credit because they are losing too much money. They want to claw some back, mainly its the recession as peoples borrowing on them for items like paying utility bills and food shopping, so spending beyond their means.

My work colleague is 21 and hasn't got any cc and applied for two as she wasn't excepted, even from her own bank. She was declined basically because she has applied for so many things in a short space of time.

This is all sooo sickening when you have people like "fred the shred" walked away with a fortune, and the general public is paying for it big time.
hence a few of us are turned down for a measly credit card, when putting it simply it's the tax payers thats bailing the banks out

fiona

Would you belive it, i got a letter this morning from Thomas Cook credit card - saying my £5000 limit has been took off me and its gone down to wait for it....... £380 ! I rang them up furious, they said the credit cards companies are clamping down. Its an insult to me, so i cancelled my card !

That surely is an insult Michelle . I think I would have done exactly the same .

We have a fair few CC's and all with decent limits .I dont use them all and the ones I do use each have their own purpose . I dont think I would risk applying for another at the moment as so many people with good credit ratings are being turned down . If you are self employed forget it

Apart from the banks being very reluctant to lend peple money there seems to be a general clampdown on the amount of credit now being made available to individuals . Please somebody correct me if I'm wrong but I'm sure I read somewhere that when you apply for a CC they can tell exactly how much available credit you have on other cards and a record of all applications. Start applying for too many and your credit rating could suffer .

lyn

PS just been looking at this http://www.moneysavingexpert.com/loans/credit-rating-credit-score

YOu're quite correct Lyn. When I applied to view my credit rating, I was so surprised at the amount of detail they gave me. I'm glad to say it was all good. The only thing that I don't see fair is that TC turned me down with no reason (other than they're clamping down)which could in fact affect my rating. A lot of companies ask you if you've ever been turned down for a CC. The answer Yes, would lead them to think that I have a bad score and am in debt, when in fact the opposite is true.

A lot of companies ask you if you've ever been turned down for a CC. The answer Yes, would lead them to think that I have a bad score and am in debt, when in fact the opposite is true

Exactly shirley and I agree . Have you checked again to see if there is now a record of that application being turned down.

lyn

There doesn't seem to be a record of it Lyn-thankfully. I hadn't thought of checking that

Regarding self employed Lyn, my OH is self employed and got 2 cards within several weeks to each other. I buy a lot on mine then be what the money saving expert says, 'a card tart'. mainly mine goes on my trips, but i never really pay any interest. I always apply for the card with the best deal. For instance i can put all my cc's on one namely barclaycard to which i pay a small amount for the life of the balance. I dont know whether this goes for normal cards but over 15 years of being with them, i got a platinum card with a limit of £15000, my Virgin which is also good is £12000, in fact all my cards together would buy a house I wonder if i could elope

So now you realise why i was so cross at being put down to £380 by TC ! I never ever use all my credit up, and always pay it, but they must like me, well for now that is

what the money saving expert says, 'a card tart'

Thats me too Michelle and why we have so many of them.

All my spending goes on my Credit cards and I would say for 11 out of 12 months I pay the balance off at the end of the month . Like you we also have a Barclaycard each which I only use for balance transfers on their low interest "life of balance "rate and always for holidays . I mainly use american express or Tesco for all my everyday spending but I also have a marks + spencer card that I use for christmas shopping and an egg card that doesnt get used much .

I also have another couple floating about that havnt been used in years that after reading that link I really should just cancel.

lyn

What is all this balance tranfer's talk, I'm with hsbc and was thinkinking of changing to Hbos, can I transfer my balance on my hsbc to them?
fiona

I agree with the original poster, the system is indeed strange. Live within your means, buy what you can afford, and try getting credit when you need it ... tough luck!! Live like a king on oodles of credit, and they just keep on giving you it. Hence the reason the global economy is now in such a mess

I have one item of credit (my mortgage!) and buy what i can afford, and i have no intention of changing that. The only real advantage of living within your means is that when it comes to a 'credit crunch' you don't really notice

I also agree with the OP although I do have a credit card. There's no way I would 'live beyond my means' - I'd be too afraid. The only reason I got a CC was to have extra Tesco points to put towards hotels/holidays etc and only use it if I've got enough money in the bank at the time to pay the bill off at the end of the month. I never carry a balance over (well, I haven't yet anyway).

I've found cancelling a credit card can be more difficult than it should be. I have written to Capital One more than once telling them I cut up their card 18 months ago. Spoken to their Indian Call Center on 3 occassions, including this week. Asked to speak to his supervisor and was cut off. Quelle Suprise !

However they constantly send me updates of the 'terms and conditions' of the account I hold with them. When I ring and log in the number it says your credit limit on this card is xxxx on the automated message. Grrrh ! (no I don't I cancelled in writing 18 months ago )

I run 3 or 4 cards & being a 'card tart' I only run cards while they suits my needs. One card is always a nought percenter for 9 months then I go on to something else. What worries me is this card must still show on my credit rating as Capital One have obviously not cancelled it as per my numerous requests. I have kept all correspondence.

I also had problems with Experian the credit references agency, although they were partly of my own making. They constantly run a banner on the AOL front page to check your credit rating. I clicked on this one day to check mine & didnt think anything more about it. Never used it again. How naive was I ? After about 4 months I noticed a direct debit for 5.99p coming out of my bank account, this was the monthy charge for belonging to Experian.

After numerous emails about how misleading their banner (check your credit rating for free!) on AOL was they eventually returned approx 18 pounds to me. Apparently its free for three months and then they charge you to be a member. I must have missed the 'small print' somewhere. Just wanted to warn folks.

Doe

I also had problems with Experian the credit references agency, although they were partly of my own making. They constantly run a banner on the AOL front page to check your credit rating. I clicked on this one day to check mine & didnt think anything more about it. Never used it again. How naive was I ? After about 4 months I noticed a direct debit for 5.99p coming out of my bank account, this was the monthy charge for belonging to Experian.

Chris.

I'm assuming you never gave them payment details at the time and they were taking the money based on your payment details for your AOL account .
I was aware of the 3 months trial method , and that you would need to give them your bank details at the time leaving it up to you to remember to cancel within that time but that seems very naughty to me .