Very first world Credit issue.

[cashmax]

Unsure how to structure this post but in essence, I’m 55 and sold my business a few years ago and was fortunate enough that despite not having a pension, I walked away with a big chunk of cash that means I won’t ever have to go to work again if I don’t want to.

The (first world) problem I have is that whilst I am in a good financial position and have a high level of liquidity, I appear to be a bad candidate from a credit perspective. When I travel or make large purchases, I want to use a credit card for this type of spend, but struggle to find a limit that I need because of the way that they are always linked to income. I retained my Amex card, which has a limit of £50k, but clearly, Amex alone isn’t ideal.

[NDA]

I had a similar problem a few years ago. I had recently sold a company too and yet I was refused a £10 monthly SIM card by Vodafone as I had no credit history - I had no mortgage, no overdraft etc. It all felt a bit ridiculous.

The only solution was to apply for a credit card, which I did, and the problem went away - in just a few weeks if memory serves.

ETA if you need credit for substantial purchases, move to a private bank.

[jimothyc]

If you’ve got that much money, open an account with Coutts (assuming your not Nigel), get Gold Card. Problem solved.

[AB]

My credit was pretty crap as I'd never had a credit card, no mortgage or any short/long term debt and only, like you, used an AMEX.

I just applied for a couple of credit cards and used them for everything paying them off monthly. Experian has me at 999 now which is pretty cool but ultimately pointless.

I'd also not bothered putting myself on the electoral roll, 12 months of being on that helped too.

[cashmax]

jimothyc said:

If you ve got that much money, open an account with Coutts (assuming your not Nigel), get Gold Card. Problem solved.

That would require me to re organise everything to meet their "criteria" and I have as much interest in becoming a Coutts customer as I do wearing a rolex.

[cashmax]

AB said:

My credit was pretty crap as I'd never had a credit card, no mortgage or any short/long term debt and only, like you, used an AMEX.

I just applied for a couple of credit cards and used them for everything paying them off monthly. Experian has me at 999 now which is pretty cool but ultimately pointless.

I'd also not bothered putting myself on the electoral roll, 12 months of being on that helped too.

Thats the thing, I have the perfect credit score, I even have a mortgage (although it's fully offset) but just can't show a big salary coming in and it seems to me that is how they tend to decide credit limit.

[mikeiow]

cashmax said:

Thats the thing, I have the perfect credit score, I even have a mortgage (although it's fully offset) but just can't show a big salary coming in and it seems to me that is how they tend to decide credit limit.

How big a limit do you want on your AMEX alternative?
Can’t you just apply for a Barclay or Clarity card (good for use abroad) & nudge your limit upwards every 6 months?
Mine started at 4 or 5k & now is on 5 figures.
Or get a Monzo for day to day debit purchases, then apply for their credit card after a few months.

I probably live such a cheap life this might sound ridiculous to you though

[Tye Green]

When I retired and decided to travel around a bit I requested an increase in limit for credit cards and was refused by both due to no regular income. Only wanted them raised from £6k and £8k to £10k each.

[Dave Hedgehog]

i put all our monthly expenditure on my amex rewards credit card, with a DD set to pay the card off each month

it keeps my credit rating high and I have earned over £2000 in amazon vouchers since getting the card and never paid a penny in interest or fees

https://www.americanexpress.com/en-gb/credit-cards...

[blue_haddock]

Dave Hedgehog said:

i put all our monthly expenditure on my amex rewards credit card, with a DD set to pay the card off each month

it keeps my credit rating high and I have earned over £2000 in amazon vouchers since getting the card and never paid a penny in interest or fees

https://www.americanexpress.com/en-gb/credit-cards...

I do exactly the same with my tesco clubcard credit card. All my spending goes on it and paid off in full every month.

The points usually pay for a ferry crossing to france a couple of times a year.

[bitchstewie]

What does your bank offer?

[AB]

cashmax said:

Thats the thing, I have the perfect credit score, I even have a mortgage (although it's fully offset) but just can't show a big salary coming in and it seems to me that is how they tend to decide credit limit.

Strange one, I don't have a regular monthly salary coming in either, but the credit card massively and quite quickly.

[muscatdxb]

I also suffer with this. I have a fairly big BTL business with a lot of equity but my hands are fairly tied moving capital around because I don’t have £25k FTE income. I can usually find someone but it’s higher rate, second tier lender and I currently have 3 as they’ve changed their policies.

Nobody will give me a credit card whatsoever. I use my wife’s who has a net worth of zero on paper but a £30k limit!

[silentbrown]

Just use your debit card? It's not as if you actually need credit, AIUI.

For security you can always part pay a deposit on credit card, and then pay the rest on debit card.

[biggiles]

I know some people with this problem - it appeared to be "no credit history" rather than "good/bad credit history". Try doing something/anything which will show up on a Noddy Experian search e.g. Klarna (though it pains me to suggest it!) or simple credit card from anyone - once you're "on the system" it should resolve to show the good credit score you have earned.

[Panamax]

My own belief has been that the way forward is to build a good, long history of consistent spending on the credit card and pay it off in full every month. So when you go back and ask for "more" they can already be 99% sure your pattern of behaviour will continue unchanged with the higher limit.

[GuigiaroBertone]

Username checks out BTW

[silentbrown]

Panamax said:

My own belief has been that the way forward is to build a good, long history of consistent spending on the credit card and pay it off in full every month. So when you go back and ask for "more" they can already be 99% sure your pattern of behaviour will continue unchanged with the higher limit.

This. Do you actually need to go ask for more? I remember getting unsolicited "congratulations, we've just increased your limit" letters in the past.

I don't think I've ever needed more than 10% of my current limit. Not trying hard enough, obvs.

[Dave Hedgehog]

silentbrown said:

Just use your debit card? It's not as if you actually need credit, AIUI.

For security you can always part pay a deposit on credit card, and then pay the rest on debit card.

its sensible to buy anything over £100 on a credit card to get section 75 protection

[silentbrown]

Dave Hedgehog said:

silentbrown said:

Just use your debit card? It's not as if you actually need credit, AIUI.

For security you can always part pay a deposit on credit card, and then pay the rest on debit card.

its sensible to buy anything over £100 on a credit card to get section 75 protection

Still works if you stick £100 on the credit card and the rest on debit. (Tank of fuel or a grocery shop can be over £100 these days. I don't bother with CC for those)