Rebuild Credit History After DRO

debtorwithaquestion · 3 September 2017 at 12:20PM

Can't believe it's been two years since my DRO was approved! It's therefore been 1 year since my discharge date.

Since then I've managed to do the following:
-open an O2 sim only (despite having multiple O2 accounts included in the DRO)
-get an EE phone contract (low tariff for work usage) (t mobile and orange were also in the DRO)
-get broadband with virgin media
-use the CashPlus credit builder prepaid card (just completed my year of payments)
-continue paying my vodafone sim only

I did try applying for vanquis but they were a creditor in my DRO and rejected me. Capital one (who I've never had any dealings with at all before) have rejected me as well. I have applied a few times (leaving 3 months in between) and they seem to just not want me as a customer. My mother in law just got a capital one card and her DRO ended 3 months after mine ended. Another person I know went bankrupt in march 2017 and in April 2017 vanquis gave that person a credit card!

Is there anything else I can do to build my history?

nic_c · 3 September 2017 at 1:28PM

Do you NEED a new credit card? Time is a great factor in rebuilding your credit, especially using what you already have. Those applications will be on there for 12 months, so applying every 3 months might make it seem you are desperate for credit, even if its you are desperate for rebuilding credit. Is there an ultimate goal why you need good credit? Something you are working towards?

debtorwithaquestion · 3 September 2017 at 2:04PM

I don't need one, but I feel it would certainly help me build my history positively. The last thing I want to do is get myself into uncontrollable debt, but I would like the security to fall back on if I ever get stuck and need to use it as an emergency. Plus the section 75 protection is useful. And of course much later down the line I would like to get a mortgage.

Just a bit confused as a lot of people on this forum have said they've been given cards straight after discharge and I know every person is different but seems a bit weird that they won't touch me. Maybe it's the searches that is causing the declines!

DaleHarries · 3 September 2017 at 2:11PM

debtorwithaquestion wrote: »

My mother in law just got a capital one card and her DRO ended 3 months after mine ended. Another person I know went bankrupt in march 2017 and in April 2017 vanquis gave that person a credit card!

Your mothers experience is the answer. Did she apply for anything recently?

Searches stay on your file for a year, and they have a negative effect on your file. It feels like you've been applying way too much recently, 3 or 4 searches in the space of 6 months is a bit too much for my liking.

If I were you, I would halt any more applications for at least 6 months. Keep making payments and building your history, and I'll bet you'll be able to pick up a simple Aqua, Vanquis or similar card.

debtorwithaquestion wrote: »

Is there anything else I can do to build my history?

You're doing everything correctly. Just try and stay at the same address, stay on the electoral role and show stability.

Stability is essentially what your credit file is about. More stability is better, and all it takes is time.

DaleHarries · 3 September 2017 at 2:15PM

debtorwithaquestion wrote: »

I don't need one, but I feel it would certainly help me build my history positively. The last thing I want to do is get myself into uncontrollable debt, but I would like the security to fall back on if I ever get stuck and need to use it as an emergency. Plus the section 75 protection is useful. And of course much later down the line I would like to get a mortgage.

There's a cohort on this forum who like to preach the "never get credit" advice your gran would give you.

Watch Martin Lewis and his video about student debt. He debunks that advice as hugely damaging for a youngster growing up today. As you've probably learned, your credit file impacts all sorts these days, from banking, credit and household utilities, to things like getting a job.

debtorwithaquestion wrote: »

Just a bit confused as a lot of people on this forum have said they've been given cards straight after discharge.

And they're either telling porky pies or had a special existing relationship with a bank. For most people, it takes careful work to re-build a credit history, and depending on when your defaults finally drop off, it can take 6 years before you're officially back in the mainstream again (Access to 0% deals, American Express and the best ultility deals etc etc).

debtorwithaquestion wrote: »

Is the searches that is causing the declines!

Yes, 99.9% IMHO, although I obviously haven't look at your report myself.

debtorwithaquestion · 3 September 2017 at 9:44PM

Thanks for the replies. I agree that I need to halt the applications and let some searches fall off my files. Maybe I should wait another year before applying for anything which would mean 3 years since the DRO.

Time is the factor I find hard to accept!

Seesaw_Life · 6 September 2017 at 9:56AM

DaleHarries wrote: »

And they're either telling porky pies or had a special existing relationship with a bank.

Not true and a strong accusation. Capital One gave me a card the day after discharge. No previous dealings with them. I did a 'soft' search via this site and was given the go ahead. Only thing in my financial favour is that I kept an EE contract going throughout the bankruptcy.

Steven_from_scotland · 11 September 2017 at 12:07AM

I got a vanquis card right away after discharge and used it and paid it off right away and it isn't helping at all now, I get a free monthly score from clear score and my score is dropping now slightly each month because nothing is changing. I think I'm going to have to take out another card with someone

[Deleted User] · 11 September 2017 at 4:38AM

The score the CRA is largely fictional and not used or seen by anyone.

Don't use it as a measure of your credit worthiness. Using and clearing your card each month is the right thing to do.

Rebuild Credit History After DRO

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