UK Credit Card 40 Years Old

Browsing the BBC site I noticed that the credit card is 40 years old in the UK. Card were first introduced by Barclays in 1966 and then with the advent of the Access card in 1972, cards became nmainstream. Initially the cards required that you pay the monthly balance in full but this changed with the introduction legislation that allowed debt to accumulate on the card.

My favourite quote in the piece is about the people that use credit cards:

"To all intents and purposes, these people form a self-defining, captive, sucker market."

Having been suckered once by the lure of these flexible friends I am sure to never get into the habit of putting it on the card again.

Click the title to go to the piece on the BBC web site.

Extreme Debt Getting Worse

The CCCS are reporting that extreme debt is on the increase. Debt management plans are on the increase as is the level of debt generally.

Living without any debt is liberating. The money I now have is my own and not being able to get credit means that I am not tempted to buy now pay later. Someone once said that all you do by borrowing is mortgage your future. A quick pleasurable experience right now, whether it's a CD an IPOD or a holiday brought on credit has to be paid for sooner or later.

If you are struggling with your debts contact the CCCS or one of the many other debt advice agencies listed to your right on the screen. Don't be taken in by debt management companies, you can get a better service free from the charitable organisations set up to help people with debt problems.

Success

Got home this evening to two letters from the CO-OP. Unfortunately, one of them rather spoilt the surprise. It said on the envelope:

WELCOME TO YOUR NEW ACCOUNT

I have been grinning all night long. It feels as if I have reached a major stage in life post bankruptcy. A major bank has allowed me to have a Visa Electron Debit card, which means I won't have to be managing cash all the time. I even have the card already and will be able to use it once I get some funds into the account.

What's more amazing is that they didn't want copies of court documentation. I simply told the call agent when I was discharged and she noted it on the application.

I am delighted and heartily recommend the CO-OP Bank to you as ethical and discharged bankrupt friendly. A link to the CO-OP Bank is embedded in the title of this post.

More on Bank Accounts

As expected the application for the Smile account was turned down. My application to the Co-Op for a Cashminder account has been referred and I am waiting for them to contact me about what further information I need to provide. It's fingers crossed to get a Cashminder account and enter the world of the carded again.

If this doesn't work out I think it's Nat West next. I will not succumb to taking on a prepay Visa or Mastercard as I feel that the monthly fees and associated charges far outweigh the benefits.

In my mind it's a simple transaction that needs to be completed with a bank. Let me demonstrate to you that I am employed, have an income. In return the bank should provide some basic facilities, such as a payment card and don't let me spend more than I have. The Electron card is great for this as I would not be able to spend more that was on the account. The only downside is I wouldn't be able to purchase by telephone as there is no CVS (security) code.

I personally like the fact that the Co-Op is an ethical bank and has some real values from the the Co-operative Movement which started in 1844. I do hope that they are able to accept me as a customer and being a loyal sort of chap they will probably keep me as a customer for a long time to come.

Once I am paid at the end of the month I will investigate the world of credit reference agencies and let you know what happens to our credit files in bankruptcy and beyond.

There has to be a way back to being carded for a discharged bankrupt and I am determined to find it!

Bank Accounts

Ever persistent in my quest for a debit card I have now applied to Smile.co.uk. Speaking to the nice customer services lady, I realised that I had made a mistake with my Co-Op banks. When I searched for co-op bank, Smile came back as top of the results, so off I went online and applied for a current account. In fact what I had meant to do was get a basic co-op bank account called a "Cashminder" which comes with an Electron Card.

I will now have to wait for the Smile application to process and probably decline, before I apply for the Cashminder.

I say that the Smile account will decline for the simple reason that it comes with a Visa Debit card and a standard overdraft. It seems it is much too early for someone who is a recently discharged bankrupt to have a grown ups account.

the link on the title to this post will take you to a helpful FSA document about basic bank accounts. The more perceptive will also note that Nat West do a basic account with a Maestro Card.

I am still waiting to get paid before I spend any money on checking out my credit scores. When I do I will let you know.