For those of you that dont know me i finished my IVA in January 2009,after 2 years with a full and final.
Went in to my bank yesterday and they the system says i can have a credit card, i said once you done a credit check youll say no, he sadi its 100% gaurnted if you want it, i still said no cause i dont want any more debts, but i do need to get my credit score, so i then said i would have one so i can spend £20 a month on and it and pay it of every month.
Still suprised when then application said yes, but nearley fell of my chair when they said your credit limit is £4400, and people wonder why some people are in debt problems again after and IVA or BR
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I certainly wouldn't have one - I don't want the temptation of a card ever again - not even to build up my credit rating.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I'll come out on the other side of the fence here and say, why not! If you are sensible with the use of the card, and pay off any balance faithfully each month, a credit card can be a very useful aid to household budgeting. Clearly you need to be mindful of the tempations which led you to personal insolvency in the first place, but having learned those lessons it is unlikely that you would act in the same way again.
Hi
That is crazy
What bank is that ?
Personally i do think that a credit card is useful, but we all need just one and with a sensible limit. To be given £4400 when the IVA is still on your credit file really is astonishing.
Would love to hear someone representing the bank defending it's decision.
I would contact the company and insist on them reducing the limit down to 1k
Regards
Melanie - have you forgot Adam and Eve and temptation? Whatever I don't believe that having such credit available is a good idea. Temptation. People forget too quickly and if credit is available then it will ultimately be taken. I'm against ya on this one sorry!
Last edited by David Mond on Wed Mar 18, 2009 10:51 pm, edited 1 time in total.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
I knew you would be - I was just trying to show a different slant, and knew my post would not be popular!!
I highlighted the issue of temptation in my post, but I actually believe that being in a formal insolvency - particularly an IVA where the repayment period is so long, enables a complete financial education - after all recurrent personal insolvencies are actually quite rare.
I have seen many people come out the other side and use credit responsibly - once bitten twice shy and all that. Not saying it is right for everyone, but used appropriately I still say why not!
Hi
I have always said on this forum that taking credit after an IVA is acceptable, and I have done it myself. The rehabilitation that an IVA brings should keep everyone on the straight and narrow.
My issue is not with being given a credit card it's the amount of initial credit, in Jame's case, that I find so strange
Regards
Andy - do you have a credit card now as a matter of interest? And if so, how do you resist the temptation to spend on it?
If you don't have one - are there times when you are out shopping, on holiday or just caught short at the till in Tesco when you wish you had an emergency back up which could then be paid off at the end of the month?
Hi Mel
Yes I have a credit card now and am glad that I do.
I purchased flights to Florida on it with Excel airways[TRAVEL CITY DIRECT] before they went bust and received all my money back. Also hiring a car without a credit card is nearly impossible.
The secret is to have one and to pay it off each month, or in large chunks.That way the high APR is irrelevent.
Regards
yes i took it, they told me i could not alter the credit limit till the card came through in 10 tens days, but when it does i will reduce to £100 i never want debt again apart from a mortgage i just want the crdit card to spend £20 a month and pay it straight away so my credit score improves.
I am not going to name the bank as i dont wont to high light this and back fire on me as i need it to my credit score back.
But i have very good self control, through out my iva i had a company credit card, and even though i should not i used it for personal use and it was always paid off on time,
David - your response seams to be of a person that can never trust any one who as had debt problems - totally understand were you are coming from, but their is some of us who have been their and never want to go their again, like me i enjoy my life stress free knowing that i owe nobody anything, i budget very good and know to the penny whats in my bank, but i am paid very highly so i would be more than stupid to get it to debt agin.
Melaine - i thank you for looking at it from a different point of view.
I am embarrsed actually to have this credit card becuase any one that sees it willt hink i have debts when i havent, at one time it was the "in thing" to have a credit card, not any more
A Debitcard will do what a Creditcard does minus the purchase protection facility,a deliberate distinction concocted by VISA to justify the two cards in existence. Visa makes big money on the credit card by making a % charge on the transaction.The reason for the CC to exist ....a ruse to make money when a Debitcard can do the same thing with a lesser visa charge on merchants.
HSBC figures:2% of every credit card transaction. 25p for every debit card transaction
you can rent a car in anywhere in the world with a visa DEBIT or Mastercard
The Credit card is nothing more than a 'instant loan' facility in disguise- like a loan it has a Credit agreement strapped onto it.Its a loan facility in essence! The CC name is just a 'trademark' moniker
A a debitcard can do the same thing as a Credit card and some merchants like Easy Jet prefer a debit card transaction as it cost them less to use the visa facility. A debitcard is all you need.Why would you want 4k credit limit on it??? If you want to buy something for 4k use a debitcard...it comes off you account instantly without the need to set up a payment facility to have the CC bill paid off.
The CC is a con and is an instant high APR loan! Thats what is not right about it. If it had interest rates tracking base rate like Home loans then I'll shut my month.
Last edited by timeforchange on Thu Mar 19, 2009 1:50 am, edited 1 time in total.
CC/loans are like a high street drug/painkiller if used wisely then they are fine but if abused then things go wrong. Still cant get over the fact that our bank (Abbey) was prepared to give us a cc and overdraft they did not need to credit check us it was all approved. Did not take them up on their kind offer however they would not give us a mortgage. Which was the lower risk ?
