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  • FIRST POST
    allankay
    Rebuilding Credit Rating
    • #1
    • 9th Dec 12, 6:12 PM
    Rebuilding Credit Rating 9th Dec 12 at 6:12 PM
    Hi Everyone,

    I have had a good credit rating in the past but then I lost my job and had to default on two credit cards.

    I am now in full time employment and one of my goals is to improve my creditscore.

    I still have one usable credit card which I managed to keep up payments on. My question is this. Is it better for me to terminate this credit card and get a new one, which I could use monthly and pay it off at the end of each month, just for the purpose of improving my score. Or can I achieve the same outcome using my existing credit card (which I have now paid off)?

    Experian recommends getting a high APR card for a single purpose of rebuilding your credit score. But will I get the same result using my current credit card?

    Many Thanks

    ALLAN
Page 1
  • DominicJ
    • #2
    • 9th Dec 12, 6:28 PM
    • #2
    • 9th Dec 12, 6:28 PM
    You wont get a new one.
    Even if you could, what do you think looks better.

    A normal card you have had for 5 years.
    A sub prime card you have had for six months.
  • allankay
    • #3
    • 9th Dec 12, 7:10 PM
    • #3
    • 9th Dec 12, 7:10 PM
    Dom,

    this is the advice given by Experian. I will be able to qualify for a high APR card, if not now then in a few months.

    I am also wondering should I stop using my credit card for good. Or should I keep using it and paying it off at the end of each month, just to improve my score?

    ALLAN
    • Tixy
    • By Tixy 10th Dec 12, 11:02 AM
    • 31,081 Posts
    • 39,468 Thanks
    Tixy
    • #4
    • 10th Dec 12, 11:02 AM
    • #4
    • 10th Dec 12, 11:02 AM
    Does the existing card have a default shown for it on your credit file?
    If not keep using that one, use each month and repay in full each statement.

    If it does have a default then you can't use that to rebuild your rating, and it will disappear from your file once the default is 6years old. So in that case it would be better to try applying for a new subprime one (usually people are only accepted once their defaults are over 3-4years old), and use that each month and repay each statement.
    A smile enriches those who receive without making poorer those who give

    or "It costs nowt to be nice"
  • UsetheFORCE
    • #5
    • 10th Dec 12, 3:05 PM
    • #5
    • 10th Dec 12, 3:05 PM
    If you still have an active card then continue to use that, you have years of history which I assume are 0000000's on your credit file?

    This is far better for you, the defaults will fall off eventually and you'll be left with one card in perfect order with lots of age.
    I have numerous qualifications in Business and Finance, Accountancy, Health and Safety and am now studying Law.

    Don't rely on anything I write as it may be wrong!!!
  • allankay
    • #6
    • 10th Dec 12, 6:53 PM
    • #6
    • 10th Dec 12, 6:53 PM
    The existing card does not have default.

    Do you think it would be wise to get another credit card just to improve my score (repaying full balance at the end of each month)?
  • UsetheFORCE
    • #7
    • 13th Dec 12, 8:04 PM
    • #7
    • 13th Dec 12, 8:04 PM
    You could do, like Capital One or Vanquis, just put say £50 a month on it and clear it every month on receipt of the bill, ensure your statement balance is never more than 30% of your limit.

    Bear in mind that opening another card will heavily lower your average age which could have a negative impact on your credit file.
    I have numerous qualifications in Business and Finance, Accountancy, Health and Safety and am now studying Law.

    Don't rely on anything I write as it may be wrong!!!
    • Treadmill
    • By Treadmill 13th Dec 12, 8:30 PM
    • 1,070 Posts
    • 973 Thanks
    Treadmill
    • #8
    • 13th Dec 12, 8:30 PM
    • #8
    • 13th Dec 12, 8:30 PM
    I would think that your existing card used properly would do a better job of improving your credit rating but nobody really knows part from the CRAs.
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