How to get a credit card
Credit cards in Britain are fairly easy to obtain. Unlike in the USA where the banks are using the social security number of a person, in Britain there is no such number.
Instead the British banks are using the address and birth date. The American social security number follows the person from birth to death. There is only one number issued per person per life and that’s it. The person is identified by that number where ever is official identification is required. So the importance of that number fundamental in that society.
In Britain where they don’t have personal identification number (except perhaps the National Insurance number), the banks and government agencies are relying on the persons name and address and utility bill. Such as a telephone or gas and electricity bill. I am not going to emphasize here the adverse effects of this system, that opens it up to fraud and cheats.
Credit cards works on personal history or record. Say a person had never had a credit card in their life. All that person has to do is to apply for a credit card. Of course he/she will be rejected, but that application creates a record with the credit card companies, thanx to Equifax and other credit reporting agencies.
Once that one record is created and the person applies for a credit card again, the search will show a record of another inquiry in the past thus proving a history. This application will be rejected too. In about 3 months the person applies again and there will be 2 inquiry records shown and the person is starting to gain credibility.
Now the person has 3 records on his/her credit file and the card company will consider them for some sort of credit. He/she will start to receive credit card application junk mail. Applying the forth time might be successful and the person will get a credit card of low value. Say about £250 pounds or so. But that opens the door and applying for a another card at a different company might give a card with a higher credit limit of say £1,500 pounds.
From this point on the road is open as long as the credit history is positive.
This works the same in the USA too if someone has no credit card. The most important for the card companies is the credit report record. They say “no credit is good credit” might be true in this case.
Now in Britain if a person acquires 3 or more cards, that can be a bad credit rating situation no matter how promptly that person is paying his/her bill.
I am gonna write on article about the adversities of the British credit card rating in a day or two. That explains how the British credit card banks will try to ruin their own business and the credit card holders credit.
Thanx for reading