Considering a credit card to repair my poor credit rating.. any constructive advice?

[ecb]

Ive been looking at moneysavingexpert site and Im considering taking out a credit card in order to try and rebuild my poor credit rating. It is my intention to spend little on this and repay in full every month. ie £50 on food -so something I need and would normally just get with my debit card.What Im unsure about is exactly how bad my credit rating is, so should I consider applying for a more general credit card, with a more competitve APR (I know, if I intend to clear this every month then it becomes academic!) Or am I wasting my time in applying for a more general one and should I just go for the Capital One Classic (interest 'free' for 3 months then 34.9%) because Im most likely to get this.Would applying for another card and getting rejected again jeopardise my chances of getting the Capital One card?I dont have any CCJs just defaults and disputes at the moment (see my other posts for the reasons for this).I tried to apply for a post office card to use on holiday last year and was turned down and also a Debenhams store card (whihc I have held twice in the pasta and cleared the balances both times) earlier this year and was turned down.Id appreciate any contructive advice you can offerMany thanks

[BRIGADIER2JCS]

What is making your credit rating poor at the moment?

Making numerous credit applications will be a red light

to lenders and should be avoided, so the limited use

of a higher rate card being reported as up to date every

month can certainly help but you would have to really

keep to your plan always pay more than the minimum

payment.

There is no quick remedy to offer for this.

 

Don't forget however that the ''credit score'' on your

file is for your eyes only, lenders do not see it, they

use there own systems together with the data on how you manage your accounts.

[ecb]

What is making your credit rating poor at the moment?

 

I have some joint loans taken out with my now estranged ex that are in joint names but far too big for me to meet the payments. They are both in dispute at the moment.

 

I have a store card that I pay regularly

Mortgage and utilities that are all paid dd and on time.

But before my ex left he went crazy and was phoning loan companies numerous times a day.

As I said ive applied for 2 things in last 2 years and been turned down.

 

Im just unsure whether they were just blips and I should try for a better rate card or go for the capital one poor credit version.

Also, if someone saw that this was the type of card I held, would that be an automatic red light for them that I am a bad risk - for the future I mean?

 

Thanks

[BRIGADIER2JCS]

These cards are recognised as credit repair facilities

so managed carefully certainly can help.

with the loan debts they will keep your status down

until they can be cleared.

 

Brig.

[ecb]

These cards are recognised as credit repair facilities

so managed carefully certainly can help.

with the loan debts they will keep your status down

until they can be cleared.

 

Brig.

 

So do you think it will be worth trying to apply for a better rate card, or should I just go for the credit repair option?

I havent looked at my credit rating via one of the sites, I think it wont be any better than I anticipate.

 

thanks

[BRIGADIER2JCS]

Hi, with the other debts I think you will struggle at

the moment to get a mainstream card, so a repair card

with a limit of £250-£500 would be ideal, you do not

need to get any more application searches as they

are very damaging.

Ignore the ''credit score'' it is meaningless.

 

Brig.

[ecb]

Hi, with the other debts I think you will struggle at

the moment to get a mainstream card, so a repair card

with a limit of £250-£500 would be ideal, you do not

need to get any more application searches as they

are very damaging.

Ignore the ''credit score'' it is meaningless.

 

Brig.

 

THANK YOU FOR YOUR ADVICE.

Is it worth getting a copy of my credit report anyway - or will it just depress me?! lol

[BRIGADIER2JCS]

Probably but don't let it worry you, apart from the account data

there largely useless:madgrin:

[ecb]

Probably but don't let it worry you, apart from the account data

there largely useless:madgrin:

 

Ok I will pluck up the courage, but first I think I will apply for the card.

Thanks again for all your speedy replies.

[BRIGADIER2JCS]

Good Luck

[liquidauctions]

Just before you apply, Alot of sub prime cards reject if you have had a default less than a year old. I would check your file first and then plan

[brokebutnotbeatn]

If you have defaults you won't be able to repair your credit report at the moment so why put yourself through this stress? I don't mean to cause offence btw with this comment.

[BRIGADIER2JCS]

IMHO it takes a minimum of 4-6 years

to improve credit status

[ecb]

IMHO it takes a minimum of 4-6 years

to improve credit status

 

I realise that it will be a slow process, but I am keen to begin that process as quickly as possible (?)

 

If I have an agreement with a company to pay a revised amount for 6 months, is that still classed as a default because its not the original monthly amount as agreed?

 

Thanks

[liquidauctions]

I realise that it will be a slow process, but I am keen to begin that process as quickly as possible (?)

 

If I have an agreement with a company to pay a revised amount for 6 months, is that still classed as a default because its not the original monthly amount as agreed?

 

Thanks

 

It depends on your bank really. In my case they terminated the account but still havent defaulted me over a year after they closed the aco**** because of my "historic co-operation" says the bank

[BRIGADIER2JCS]

You are right on the default, as in the strictest

interpretation of the DPA anything else would no

be an accurate picture of the conduct of the account

 

Brig.

[brokebutnotbeatn]

you should push to ge thte default registered as that is reported on for 6 years then drops off whilst and AP (Arrangement to Pay) stays on the files...so ironically an AP with a default is better than an AP without...

[BRIGADIER2JCS]

Hi, just one query the loan on reduced

payment does this show on your CRA

marked as a default or an arrangement to pay.?

[ecb]

Hi, just one query the loan on reduced

payment does this show on your CRA

marked as a default or an arrangement to pay.?

 

Sorry, Im not sure what is CRA?

[pandaspot]

Have a look at https://www.moneysupermarket.com/credit-cards/smart-search/ it will give you an idea at what card you would qualify for.

 

Also you could consider getting a fee paying card where you load money on it. Think the fee is £5 a month.

 

Remember reading somewhere that these are seen as loans, even though it's £5. But it can be used as a credit builder as well.

 

I am on a credit building exercise now after 5 defaults came off this year, 2 left I have a littlewoods catalogue, and a vanquis card. Only spending minimum amounts and paying off straight away

[BRIGADIER2JCS]

CRA Credit reference agency file , Experian, Equifax, Call credit.

Check them to see what is posted there on your credit accounts.

[dreadpiratesteve]

I managed to get a Vanquis Credit Card two months ago with two defaults on my file, one from February last year and one from April this year, so it is possible!

[brokebutnotbeatn]

Please be careful. Defaults stay on your files for 6 years so this will not help your credit wortiness BUT make sure you keep this one running squeeky clean wiht no missed payments.

[BRIGADIER2JCS]

Do not accept limit increase offered for at least

a year.

[dreadpiratesteve]

Is there a reason as to why not accept a credit increase?

 

I always thought that an increase would be a good thing in helping the credit worthiness? In any case i only use my credit card to fill the car up once a month and pay the balance off in full the day the statement pops through my letter box!