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  • FIRST POST
    • Lincsdebt
    • By Lincsdebt 21st Sep 16, 11:54 AM
    • 72Posts
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    Lincsdebt
    Cards for "bad credit risk" - what is the point?
    • #1
    • 21st Sep 16, 11:54 AM
    Cards for "bad credit risk" - what is the point? 21st Sep 16 at 11:54 AM
    Sorry in advance for this bit of a rant!


    I have just completed an IVA (cue huge sigh of relief) and am waiting for the completion paperwork.


    Recently I have had two separate "invitations" to apply for a credit card aimed at those like me with a bad credit history. As the IVA is done, I thought about applying for one. I have learned my lesson regarding credit cards, but it is sometimes useful to have one, even with a small credit limit.


    So I took advantage of MSE's new soft credit check. While my credit rating is listed as "fair", my likelihood of obtaining ANY "bad credit" card is listed as zero.


    I have a good job and earn a decent salary, and not having to pay over £1k a month to the IVA leaves more money in my account.


    What is the point of these "invitations" then? Applying would leave a bad mark on my credit file (so thanks to MSE for the check) and I certainly don't need any more of these. Total waste of time and gone in the shredder!


    What is other people's experience of these cards after an IVA or other bad credit? Is there any point to these "invitations"?
Page 1
    • zx81
    • By zx81 21st Sep 16, 12:28 PM
    • 8,676 Posts
    • 8,506 Thanks
    zx81
    • #2
    • 21st Sep 16, 12:28 PM
    • #2
    • 21st Sep 16, 12:28 PM
    The point of them is that they are the cards most likely to accept people with poor credit history.

    Their rates are higher, but that is to reflect the greater risk. If you're looking to rebuild a history, they would be a good place to start. The MSE credit checker is not infallible by any means.
    • DCFC79
    • By DCFC79 21st Sep 16, 12:47 PM
    • 27,179 Posts
    • 17,250 Thanks
    DCFC79
    • #3
    • 21st Sep 16, 12:47 PM
    • #3
    • 21st Sep 16, 12:47 PM
    As the MSE credit check is a soft one, a mark isnt left on your credit history.

    Why not apply direct for 1 of the cards and ask for a small limit eg £200.
    Je Suis Charlie
    • Lincsdebt
    • By Lincsdebt 21st Sep 16, 1:11 PM
    • 72 Posts
    • 49 Thanks
    Lincsdebt
    • #4
    • 21st Sep 16, 1:11 PM
    • #4
    • 21st Sep 16, 1:11 PM
    I do understand what they're for. But what is the point of applying for something you have zero chance of getting? And putting a black mark on my history. I was just wondering if anyone in a similar position to me has had any success with these card suppliers?
    • zx81
    • By zx81 21st Sep 16, 1:21 PM
    • 8,676 Posts
    • 8,506 Thanks
    zx81
    • #5
    • 21st Sep 16, 1:21 PM
    • #5
    • 21st Sep 16, 1:21 PM
    You don't know that you will be rejected. Perhaps you will, but the selection criteria used that meant you received the mailings certainly doesn't mean that rejection is guaranteed.

    And if you are rejected, it doesn't put a black mark on your file. Just a search, which would hardly matter if you have just come out of an IVA.
    • memberme
    • By memberme 21st Sep 16, 2:01 PM
    • 139 Posts
    • 24 Thanks
    memberme
    • #6
    • 21st Sep 16, 2:01 PM
    • #6
    • 21st Sep 16, 2:01 PM
    I got a Vanquis card with £500 limit whilst the iva was still listed on all credit agencies :-

    but:---


    My advice is to register with noddle and clear score (both free and one link with Equifax and one with call credit) and have a look through and see if your iva is still listed. My iva finished at 6 years so it dropped off the credit ref agencies quickly and then I was eligible for loads but like you, when iva was still on it I got offered zilch on the auto eligibility checkers. Was yours a 5 or 6 year iva as it will remain on all files for 6 years.

    There is also a free credit check related to Experian now available through Martin Lewis' site.
    • Lincsdebt
    • By Lincsdebt 21st Sep 16, 2:46 PM
    • 72 Posts
    • 49 Thanks
    Lincsdebt
    • #7
    • 21st Sep 16, 2:46 PM
    • #7
    • 21st Sep 16, 2:46 PM
    Thanks Memberme. It finished recently so it's still on the IVA register. It was a 6-year IVA, as we were unable to re-mortgage for various reasons.


    Under those circumstances I may as well leave it at least until it disappears from the official register.
    • nomoneytoday
    • By nomoneytoday 21st Sep 16, 3:58 PM
    • 4,649 Posts
    • 2,796 Thanks
    nomoneytoday
    • #8
    • 21st Sep 16, 3:58 PM
    • #8
    • 21st Sep 16, 3:58 PM
    Has the completion been finalised on your credit record?
    An open IVA will change the odds on any new debt to zero..
    • Lincsdebt
    • By Lincsdebt 22nd Sep 16, 10:27 AM
    • 72 Posts
    • 49 Thanks
    Lincsdebt
    • #9
    • 22nd Sep 16, 10:27 AM
    • #9
    • 22nd Sep 16, 10:27 AM
    The IVA was completed in August, so it is still showing on my credit file. I was surprised to receive any credit card offer, as under the terms of it I couldn't get any credit other than for utilities.


    I've signed paperwork regarding any outstanding PPI claims, so the completion certificate can be issued. But haven't had it yet. Once I do I will send copies to credit agencies and ask them to update my record.


    So as I thought, the "invitation" belongs in the shredder!
    • owlet
    • By owlet 23rd Sep 16, 10:29 AM
    • 1,427 Posts
    • 1,264 Thanks
    owlet
    I do understand what they're for. But what is the point of applying for something you have zero chance of getting? And putting a black mark on my history. I was just wondering if anyone in a similar position to me has had any success with these card suppliers?
    Originally posted by Lincsdebt
    I love MSE but I have to say that the credit card checker has been way out for me. It told me I had a zero chance of getting any cards but I got both Vanquis & Capital one within 2 days of being discharged from bankruptcy & my credit files were a mess (March 2015).

    Last week I used the credit checker again & still zero chance of any cards but I applied to Aqua & got a card at 29 point something percent (credit files still a mess!!).

    So just my experience but it's up to you if you want to apply or not. I figured that my credit files were a mess and it really didn't matter if I had a failed credit application but as it turned out, it was fine.

    I'd recommend Vanquis to start with. Just make sure you use it for a small purchase each month like fuel or shopping & set up a direct debit to pay in full.
    Last edited by owlet; 23-09-2016 at 10:32 AM.
    SPC 8 (2015) #485 TOTAL: £334.65
    SPC 9 (2016) #485
    • ontheup1972
    • By ontheup1972 26th Sep 16, 10:29 AM
    • 2 Posts
    • 0 Thanks
    ontheup1972
    My IVA was finished on 25 August 15, but only officially completed in July 16 - once it was completed and showing on my credit record as completed I was able to get an Ocean credit card.

    If you go to their site and do an eligibility check it will do a soft search and let you know if you are eligible. I found that I was pre-approved.

    Note - this was done in early August before my 6 year anniversary and before my IVA dropped off my file.

    Now my IVA has disappeared from my file completely, and it has greatly increased the credit cards on offer, not that I want any more anyway!
    • ontheup1972
    • By ontheup1972 26th Sep 16, 10:38 AM
    • 2 Posts
    • 0 Thanks
    ontheup1972
    The IVA was completed in August, so it is still showing on my credit file. I was surprised to receive any credit card offer, as under the terms of it I couldn't get any credit other than for utilities.


    I've signed paperwork regarding any outstanding PPI claims, so the completion certificate can be issued. But haven't had it yet. Once I do I will send copies to credit agencies and ask them to update my record.


    So as I thought, the "invitation" belongs in the shredder!
    Originally posted by Lincsdebt
    Once you get your completion certificate (it's not really a certificate, more of a letter confirming that you've been discharged from the IVA) I would hold off contacting credit agencies for a few weeks, because your IVA practitioner will contact them as a matter of course.

    With mine, my IVA was showing as discharged on the insolvency register only a week or so after completion, and showing as completed on my clearscore and noddle accounts the first update after my IVA completed.

    Bizarrely once creditor still shows on Noddle as in default from April 11, and it should have defaulted as part of my IVA on 25th August 10, so I could contact them and ask them to rectify this - but I figure it'll disappear in April next year anyway
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