Credit Rating: How it works and How to improve it discussion area

geordie_ben

mpepperhouse wrote: »

thanks for all the advise!

I was looking at the cashplus card on this website that's is recommended for poor ratings and thought I might do that.
the main problem on my rating was the catch 22 situation you need proof of paying a credit but I cannot get credit. I think this way I can build up a credit history and then once I have that hopefully get a proper credit card and use it like geordie_ben suggests. I just want one so in a few year there are no problems with mortgage applications.

It charges you a yearly fee too tho boooo!

mpepperhouse

yea I know it is a pain but i would be willing to pay that so that i am on the right road for the future.

KingElvis

Problems with Cashplus? from what I've read on here are as follows.

1.The card costs an upfront cost, 9.99 I think
2.They take yonks to register the "Credit Builder" feature
3.It costs 4.99 per month (may be more)
4.The loan they give you is only for something like £60

Good things?

1.No check for the credit challenged.
2.It builds up some green marks on your record.

izools

I wouldn't touch the Cashbuilder with a barge pole unless I'd been knocked back for Aqua, Barclaycard Initial, Capital One Classic, and Vanquis.

At least then I'd know I truly have no choice but to build repayment history by giving #69.99 away to a worthless cause.

geordie_ben

If you've been rejected for the 'expensive' cards above, there is a further last resort option. The Cashplus Creditbuilder* is a prepaid card, meaning you have to load it with cash before spending, rather than having a credit facility, which costs £4.95. However, you cannot be rejected for it!
To help rebuild your credit rating, during your application click 'yes' when asked if you're interested in adding Creditbuilder. You'll then be charged a £4.95 monthly fee, which technically counts as a £59.40/year loan and as long as you pay the fee every month for a year, this info will be passed on to credit reference agency Experian. To get the facilty you need to provide proof of ID and address.
If you go this route you must...

NEVER EVER EVER miss a monthly payment.
It gets reported, leaving you in an even worse position

Crucially, no credit check is needed to get the card, so is open to abs olutely all. After 12 payments, it should show on your credit history as a fully repaid loan agreement, making you a more attractive customer to many companies, hopefully meaning you can apply for better credit card and loan deals. Though you are, of course, paying £65 for it!
If you're after the best value prepaid card, don't go for this, read our full Prepaid Cards guide. For more details on this, including pros and cons, read Cashplus Creditbuilder discussion.

mpepperhouse

hmm, you do make good points! do you think i should wait 6 months then and go for a capital one then?
man alive, being an adult is a pain!!

geordie_ben

mpepperhouse wrote: »

hmm, you do make good points! do you think i should wait 6 months then and go for a capital one then?
man alive, being an adult is a pain!!

Yes . . . . .

izools

mpepperhouse wrote: »

hmm, you do make good points! do you think i should wait 6 months then and go for a capital one then?
man alive, being an adult is a pain!!

The sub prime cards I mentioned aren't really bothered about how many applications you've made recently unless it's literally dozens and dozens.

I'd just give 'em all a go. My flatmate did and got all four :beer:

mpepperhouse

ok, i appreciate all this everyone! I will see if i get accepted in 6 months time for the capital and then take it from there. if not then cash plus and if so then yay! fingers crossed!

geordie_ben

izools wrote: »

The sub prime cards I mentioned aren't really bothered about how many applications you've made recently unless it's literally dozens and dozens

How long does it take to work off a search tho? How many points does it knock off your score, and how long does it take to rebuild those points?

I'm guessing waiting 6 months and applying then, and in the mean time getting some savings and doing everything possible to make sure their score is tip top, everything registered, any anomolies on the credit file have been ironed out would be much better