BBC NEWS | Programmes | Working Lunch

Credit cards is the subject consuming us today. Melanie Stewart from Moneyfacts answers your questions.

Mike from Manchester has recently applied for several new cards but has been refused on credit grounds.

He says: "I'm on a good income, no credit history problems, I'm a homeowner and am registered on the electoral roll.

"Could my large number of credit card applications affect my rating?"

Whenever an organisation carries out a search on your information a record or footprint is left on your credit file.

The two agencies, Experian and Equifax, keep a record of every company which has assessed this information and retains it for a period of two years.

A search should only be conducted in response to an actual application for credit so the more times you apply for a credit agreement the more information will be held on your credit file.

Information on your file will include electoral roll information from local authorities and details on your existing and previous credit agreements from UK lenders.

In addition, where applicable, County Court Judgments and bankruptcy details will be shown.

Electoral roll information is used by lenders to verify the name and address you have provided on your credit application and to help distinguish you from other members of your family with the same surname.

Payment history information shows a record of your financial agreements, such as credit card and loan repayments, and is supplied by banks, building societies, retailers, etc.

Your credit file will show details of your existing and previous credit agreements and is used to help support responsible lending decisions.

A large number of credit agreement applications could signal potential problems.

You can obtain a copy of your credit file at a cost of �2 by applying either online or by post.

Peter Shemen's daughter had a NatWest credit card and her boyfriend was an additional cardholder.

When they split up she tried to cancel the second card and was told that she couldn't until his card expired, which means he could have continued using it.

Was the bank right to not cancel the card and who would be liable to pay up if the ex decided not to?

The responsibility for the debt remains with the main cardholder, in this case Mr Shemen's daughter.

The account should have been closed or suspended when the couple split up and a new account opened in her name only.

You cannot just remove an additional user as the card number for both parties is identical.

Rob Forster of West Glamorgan used his Goldfish Mastercard when he arrived on holiday in Spain.

But three days later his card was declined and then again when he tried settling his hotel bill.

Goldfish told him this was because a transaction of his was being processed in the UK the same time as one in Spain so the computer suspended his card as he couldn't be in two places at once.

It's the second time it's happened to him - are they right to do this and leave people strapped for cash abroad?

Sounds like a case of authorised/additional cardholder.

Credit card providers will suspend accounts if there are unusual circumstances.

Things like out of the ordinary spending patterns and in this case usage abroad as well as in the UK.

This is obviously to prevent fraudulent use of the card but can leave people in a difficult situation.

A phone call to your credit card provider prior to travelling could prevent this happening.

Nicholas Thorogood from Cardiff is going to be a full-time student in September.

He asks: "Is it a good idea to have a credit card if you are a student?

"Are there any good deals banks offer? Anything to look out for?"

Most banks offer student credit cards but these have rather low limits averaging about �500.

Unless you are extremely disciplined it is not a particularly good idea for a student to have a credit card.

I would suggest instead that you look at the various different student packages that are on offer and find one that suits your needs the best.

Things to look out for when choosing a student account are interest-free overdraft limits, which vary from bank to bank, and can be in the form of a flat amount each month or on an ascending scale as you progress with your studies.

Incentives, which can come in the form of cash, discounts on books and holidays can also make a difference.

Credit interest is not of great importance unless you intend to remain in credit; rates range from 0% to 3%.

Michael French is jetting off on his hols but is worried because his Barclaycard expires in a week's time.

He says that he and his wife were told the printers at Barclaycard were running late and the chance of them getting their cards in time were remote.

As they're off to Canada and America they feel they really need their cards - what can they do?

Normally replacement cards are issued four to six weeks before the current cards expire.

Barclaycard have said that in an emergency they can get new cards to customers within three days or next day by courier but you would have to pay the charge.

I suggest that Michael contacts Barclaycard head office to arrange for emergency delivery.

Roy Johnston from Kent asks is there any advantage in having a Mastercard as well as a Visa card?

Are there places where one is accepted and not the other?

There isn't any real advantage in holding both a Mastercard and a Visa card as most places will take both, although Visa is more widely accepted worldwide.

Rachel Boyle from East Sussex had a bill from First Direct and paid the majority before the due date.

But despite paying off most of the balance the next bill showed interest repayment for the whole amount owed on the previous bill.

Rachel says she could have kept the �1,000 in her account and earned interest on it instead of being charged interest on it.

What should she have done?

First Direct charge interest on all transactions from the date the item was charged to the account if the account is not cleared in full each month.

Therefore as Rachel did not clear her balance in full she still paid interest on all items while they were outstanding.

Most credit card providers charge interest in this way and some will even charge you interest from the date the transaction took place.

The best option Rachel could go for is to have interest charged from the statement date if the account is not cleared in full each month.

However, only a very limited number of card lenders operate in this way and have selected criteria:

Citi AAdvantage Gold Visa

Frizzell Card

Coutts & Co

Bank of Cyprus

Laiki Bank.

William Armstrong in Staffordshire accepted an invitation from American Express to join and transfer credit card balances at a fixed low rate of 2.9% APR.

When the card was issued and balance transferred, the fine print accompanying the card had changed the rate to 4.9% APR.

Can they do this legally?

He's written to complain but had no reply.

The 2.9% was a special offer, limited to direct mail readers and only available using that specific application form.

American Express have stressed that the correct application must be used to obtain special offers as applications over the telephone or using a different form would, and indeed did, attract the rate of 4.9%.

However, after we spoke to American Express this week they have agreed to switch the customer to the 2.9% rate and reimburse him.

Len Horton from Cornwall paid off the balance on his Cahoot card last December and hasn't used it since.

But when he went to cancel the card this week he found the balance was almost �200.

This is because he's opted for a fixed monthly payment when joining Cahoot and never thought it would be charged on a nil balance but the company insists he pay the charges.

Is there anything Len can do about this?

Cahoot offers an interest-free option on its credit card in exchange for a fixed monthly fee.

This basically means that the only charge to your account during the month is the monthly fee and you will not be charged interest on any accrued balance.

Although the balance was reduced to zero the monthly fee is still collected because the option to spend is still there.

I suggest Len contacts Cahoot with a view to changing the way his account is set up.

Kevin Day from Norfolk asks how many people realise that some credit card companies issue two types of cheques?

There's Capital One marked with a P ( purchase rate interest) or S (cash advance interest).

Kevin always sets fire to the S ones and keeps the purchase ones.

Is this advisable?

Credit card cheques are no different in principle to withdrawing cash at an ATM using a credit card and are typically treated as the equivalent of a cash withdrawal.

Most credit card providers who offer this service will charge the equivalent of a cash withdrawal charge which is more expensive than using your credit card to purchase goods.

Capital One used to offer two different types of credit card cheque, one charging the purchase rate and one charging the cash advance rate, but has now moved solely to cash advance rate cheques for the vast majority of its customers to bring it in line with its competitors.

Credit card cheques offer consumers greater flexibility in how and where they use their credit card as they can be used in places where credit cards aren't accepted or for making personal payments to a third party.

Credit card cheques are not issued to all customers and are subject to credit checks before being issued.

The rate for each cheque is clearly explained in the accompanying letter.

Mike Phillips of Essex has a gripe with shops and companies that print credit card numbers on receipts.

Why do they do this and why is it allowed, he asks.

BA no longer print the number on their receipts - have any other companies followed suit?

Although some retailers still display the full credit card numbers on receipts most of the big retailers have changed their hardware so that only the last four digits of the credit card numbers appear on the receipt.

This is an obvious safeguard against possible fraud.

The opinions expressed are Melanie's, not the programme's. The answers are not intended to be definitive and should be used for guidance only. Always seek professional advice for your own particular situation.