I am having trouble differentiating all my passwords for all my different financial service providers. So I was looking to consolidate. I have a Mastercard with Barclaycard and looked into transferring it to NatWest who I have a student account with.
I enquired at NatWest prior to applying, because I didn’t want a mark against my credit report – I have the highest possible score of 999. NatWest asked me if I was in a job with a £10,000 and over 18. I said no to the first and yes to the second. They said I could have a card with a £500 limit – My business soften spends more than that a week on purchases let alone the month period they were offering!
NatWest said I could only have the package I have with Barclaycard if I was in a job earning £10,000. There are lots of people with credit ratings of around 700 who are in employment at risk of redundancy who would be eligible for this card but in the case of me – someone with the highest rating of 999 – I wouldn’t be able to get it!
This is why the country is in the mess it is in. Someone working in the construction industry earning £10,000 year with a credit rating of 700 is seek preferable to someone like me who is a self-employed writer and research and developer like me with a surplus of less than a quarter that with a credit rating of 999 and therefore less risk is told not to apply because banks like NatWest have terms for their cards which don’t recognise this. Also, because I am self-employed and company director with a many high value transactions going on these cards for both my firms and me, then NatWest will make more money with me than the person earning £10,000 through higher commission on sales.
The banks have learned nothing since 2008. Like NatWest they are just not up to the job of knowing the difference between low risk and high profit customers to high risk low profit customers. NatWest and the others are not going to make any money giving credit cards to people who won’t pay them back however much interest is added to that high risk customer’s balance. The sooner they start understanding risk the better decisions banks like NatWest will make.