Oh I see.
Well, speaking of credit and cards and things, lemme tell you all a story.
Draw up close, kids and listen to Uncle X-ray...
When I was working on minimum wage back in 1990 in Dorset (£2.25 per hour IIRC) I was paid weekly in cash. I never had a bank account because my whole aim in life was simply to save enough money to buy an A500 (which I eventually did). It was a silly thing, not to open an account. Because:
Fast forward to 1995. I had studied radiography in South Africa and came back to the UK to seek my fortune. But...nobody wanted to know me (none of the banks that is). Even though I had about £4000 that I could deposit straight away, I couldn't open the account because I didn't have an address and utility bills to prove that I wasn't Al Capone's great grandson. Fortunately the landlady had a contact at RBS and when I went to see him, he opened a very basic current account for me. That's all I could get.
When I left the UK at the end of 1996 I had the good sense not to close that account. I kept it open and came back to seek my fortune (thus far not found) in the year 2000. I didn't have much money when I arrived (less than £1000) but I had organised a job pretty sharpish before I got on the plane
So after a few months working I was able to go in and ask for a savings account with better interest. They saw I had been a customer of theirs for some time and gave me another card.
But what I really wanted was a credit card. I asked RBS for a credit card and they said I need to provide a bank statement and a utility bill. I said cool, here are all my RBS statements going back quite a while and here is a direct debit notice from one of my board registrations.
You know what they said? They said I can't provide a statement from the same bank at which I am applying for the credit card!
I said wtf man, you know me. Are you trying to say I have this current account under dubious circumstances?
They weren't interested. They said I can't do that, I must produce another bank's statement. When I asked them if the credit card division was the same as the savings account division, they said no, they are separate entities. I said what's the problem then? They couldn't explain, all they said was no. You know the attitude "The computer says no"
Fine.
I applied for a Capital One card and they gave me the lowest of the low with a credit limit of about £200. Well it was better than nothing and I made sure I used that, but also paid the account off in full before they could charge me interest. Steadily the credit limit was increased and they gave me a better deal.
Now this is where it gets interesting. After the very first payment I made via RBS cheque to Capital One, I got a letter from RBS offering me a credit card.
Wtf, eh?
You know what I think...they keep track of who your payees are and use that for cold calling. Ever since I have had that Capital One card, I have had RBS trying to crawl up my arse with all sorts of tempting offers. I have had them phoning me, writing to me, sending offers in the mail, you name it.
And I have said no each time. Why? Because when I needed their credit card they wouldn't give it to me. And I had not established any kind of extra trustworthiness in the interim. So they can stick their credit card.
And that's my story for you. It has taken a while, but I have now built up a decent credit history. Of course I had good credit history in South Africa but that doesn't count. I don't own any property and I don't have a lot of money but my credit limit is ten times better now.
The secret is: paying on time and paying it all if possible. To be honest I don't use the credit card in a way that the bank can milk me. It is a convenient way to pay for online purchases and that is why I like it.
