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Best credit card to get after bankruptcy
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# 1
rowleysmum
Old 17-10-2013, 5:06 PM
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Default Best credit card to get after bankruptcy

Hi. We were made bankrupt in 2009, and discharged in 2010. We will be clear on our credit file in 18 months' time, and thought that we would start to try and apply for credit cards, so that we could build up a credit rating. I have been approached by Vanquis to apply for one of their cards, but had heard that some of these companies are not suitable because they are only really for people with poor credit ratings, which can adversely affect us down the line. Can someone please tell me which are the best ones to apply for.
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# 2
zx81
Old 17-10-2013, 5:12 PM
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Vanquis, aqua, Cap One are the normal cards for those with poor or little histories. Vanquis will be the easiest to get.
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# 3
BugsyBrowne
Old 17-10-2013, 5:14 PM
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Not sure who told you that about Vanquis as they're probably one of the best builder credit cards out there..
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# 4
InsideInsurance
Old 17-10-2013, 5:19 PM
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Post bankruptee normally a very poor credit ratings so Vanquis, Capital One Classic, Barclaycard Initial etc

If you believe you are some unusual exception where you still have a good credit history then a safer bet would be your own bank otherwise whichever reward card you want
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# 5
Barclaycard Company Representative
Old 18-10-2013, 8:40 AM
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Hi rowleysmum,

Our pre-eligibility checker might help. It will give you a good idea if your application is likely to be successful, but won’t impact your credit rating. You can find it here: https://letmechoose.barclaycard.co.uk/.

If you have any questions, just pop them in an email along with your phone number and send it to wr@barclaycard.co.uk.

Thanks
Dan
Official Company Representative
I am the official company representative of Barclaycard. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
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# 6
redpete
Old 18-10-2013, 8:52 AM
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Quote:
Originally Posted by rowleysmum View Post
... heard that some of these companies are not suitable because they are only really for people with poor credit ratings, which can adversely affect us down the line.
They do not further damage your credit rating (as long as you manage them properly - e.g. pay the full amount each month).
loose does not rhyme with choose but lose does and is the word you meant to write.
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# 7
John1993
Old 18-10-2013, 10:12 AM
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Quote:
Originally Posted by rowleysmum View Post
[I] heard that some of these companies are not suitable because they are only really for people with poor credit ratings.
That'd be you, then, which is why you want a card to start improving your credit rating...
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# 8
chanz4
Old 18-10-2013, 11:18 PM
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Quote:
Originally Posted by rowleysmum View Post
Hi. We were made bankrupt in 2009, and discharged in 2010. We will be clear on our credit file in 18 months' time, and thought that we would start to try and apply for credit cards, so that we could build up a credit rating. I have been approached by Vanquis to apply for one of their cards, but had heard that some of these companies are not suitable because they are only really for people with poor credit ratings, which can adversely affect us down the line. Can someone please tell me which are the best ones to apply for.

have to agree, you fit this catagory
Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
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# 9
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Old 18-10-2013, 11:53 PM
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I would recommend not getting a credit card.

You have leant the hard way how credit can destroy your finances. Why entertain that risk again.

Build up savings by meticulously putting money aside every payday, and before you know it loans/cards will never be needed again. (and you will save 1000s of pounds compared to your average credit consumer!!
110% effort is 120% too much.
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# 10
sscott5581
Old 19-10-2013, 11:30 PM
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Any lender viewing your credit file can only see what type of credit you have i.e. credit card, loan etc the name of of the lender is not shown. So there is no way for them to tell you have a Vanquis or whatever card.

In you situation Vanquis is the probably the best card for you. Use it a few times a month and pay in full via direct debit. This will build up your credit score over time.

Regards
Steven
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# 11
BugsyBrowne
Old 19-10-2013, 11:41 PM
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Quote:
Originally Posted by sscott5581 View Post
Any lender viewing your credit file can only see what type of credit you have i.e. credit card, loan etc the name of of the lender is not shown. So there is no way for them to tell you have a Vanquis or whatever card.

In you situation Vanquis is the probably the best card for you. Use it a few times a month and pay in full via direct debit. This will build up your credit score over time.

Regards
Steven
You need to be specific when you say build up a credit score as many posters will think you mean the scores which Experian sells to customers..
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# 12
sharpy2010
Old 20-10-2013, 1:31 AM
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Quote:
Originally Posted by rowleysmum View Post
Hi. We were made bankrupt in 2009, and discharged in 2010. We will be clear on our credit file in 18 months' time, and thought that we would start to try and apply for credit cards, so that we could build up a credit rating. I have been approached by Vanquis to apply for one of their cards, but had heard that some of these companies are not suitable because they are only really for people with poor credit ratings, which can adversely affect us down the line. Can someone please tell me which are the best ones to apply for.
This makes me angry. Not content with messing up the first time, they've now got the opportunity to do it again, pretty soon after.
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# 13
BugsyBrowne
Old 20-10-2013, 8:32 AM
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It's quite astonishing IMO that defaults are actually a lot worse then going BR.

Think about it say someone has 15k of debt and they decide to default on this it means for the next 6 years whether their creditors have froze their interest or not the person still has to pay this back even when after 6 years it's cleared from your credit file.

But someone bankrupt will get discharged after 1 year and his credit files clean after 6 years and they won't have to pay a single penny back.

Now surely its an absolute no brainer to go BR where your debts are wiped.

Look at Izools on the forum where he's came in 6 years after going bankrupt he's now got barclaycard platinum's American Express etc etc & mortgage.

If Going BR was 10 years I'm sure many would think twice
Just saying

Last edited by BugsyBrowne; 20-10-2013 at 8:35 AM.
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# 14
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Old 20-10-2013, 5:53 PM
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It might look that way but a lot of companies will keep internal records for more than 6 years and will not deal or offer services for certain people for longer than 6 years.
What goes around - comes around
give lots and you will always receive lots
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# 15
sscott5581
Old 20-10-2013, 10:21 PM
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Quote:
Originally Posted by sscott5581 View Post
Any lender viewing your credit file can only see what type of credit you have i.e. credit card, loan etc the name of of the lender is not shown. So there is no way for them to tell you have a Vanquis or whatever card.

In you situation Vanquis is the probably the best card for you. Use it a few times a month and pay in full via direct debit. This will build up your credit score over time.

Regards
Steven
Sorry I meant 'credit rating' not 'credit score'.
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# 16
adindas
Old 23-10-2013, 11:57 PM
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IMO bankruptcy, default should be kept forever in someone credit files. If not it will encourage people to take loan, credit card they could not effort as they know if they could not pay it back they could declare bankrupt again and after six years they will do the same thing again.
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# 17
wiseshark
Old 24-10-2013, 12:26 AM
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Quote:
Originally Posted by adindas View Post
IMO bankruptcy, default should be kept forever in someone credit files. If not it will encourage people to take loan, credit card they could not effort as they know if they could not pay it back they could declare bankrupt again and after six years they will do the same thing again.

I have to disagree. There will always be irresponsible people who for the whole of their lives never learn and go bankrupt and default time and time again. They are a minority.

Most people are responsible and those who have credit issues usually wise up eventually. Sometimes people get into financial difficulties through no fault of their own, i.e. lose their job, having to care for a loved one or through misfortune.

A trashed credit file for 6 years is long enough IMO and everyone deserves a second chance.
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# 18
BugsyBrowne
Old 24-10-2013, 2:18 PM
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Quote:
Originally Posted by wiseshark View Post
I have to disagree. There will always be irresponsible people who for the whole of their lives never learn and go bankrupt and default time and time again. They are a minority.

Most people are responsible and those who have credit issues usually wise up eventually. Sometimes people get into financial difficulties through no fault of their own, i.e. lose their job, having to care for a loved one or through misfortune.

A trashed credit file for 6 years is long enough IMO and everyone deserves a second chance.
I obviously see it completely different to you as 5/5 people who I knew went BR 2 years after they knew they'd go BR and carried on spending.

I also take the great "why People go BR" with a pinch of salt as TBH not everyone is going to join forum and actually tell the whole truth why they went BR because posters would then treat them differently,so the easiest way to get answers is saying "don't judge me you don't know the circumstances".
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# 19
solentsusie
Old 24-10-2013, 2:48 PM
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I find it interesting how bankruptcy is treated these days.

My ex ended up having no choice but to go bankrupt about 18 years ago. A bad business decision in going into business with three people who basically ended up ripping him off and he lost everything, with the exception of his house which was in negative equity at the time.

Luckily he came out the other side. He now runs another business which is relatively successful and he has worked extremely hard to get it there. He employs other people and now has an excellent credit rating. He learned a harsh lesson. Never trust someone else with your finances and always keep a handle on everything. His bankruptcy was certainly not wiped after a couple of years and it was a very long time before he could get any credit at all. Then there was a real stigma to bankruptcy.

Whilst I feel sorry for those who have no other choice than to take this route I understand that there are others that use it as an easy way out. Should it affect your life forever? No. We all make mistakes. But if you don't learn from them and end up in the same boat again then I think that harsher penalties should be enforced.

To the OP, get yourself a credit builder card as advised and start your life again. But learn from your past. I'm not going to judge you!
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# 20
wiseshark
Old 24-10-2013, 2:51 PM
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I take your point Bugsy, yes in certain ways you are correct, but I do believe most people can change and deserve another chance. Ok, there are people like the former Iceland lady (KK) who never learn and will take the pee.

I give you another scenario, a good friend of mine had 19000 of debt. He could have chosen to go BR but didn't. He took out an IVA for 5 years paying 308 per month to his creditors. That finished 2 years ago. The amount of money repaid was very close to what was originally owed. Do the maths.

He could not get any credit apart from Capital One and Vanquis, not even his bank. The IVA is still on his file. He didn't choose the soft option, but it seems to me he was doubly punished.
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