Should I or Shouldnt Have I???

ginormousflares

Hi everyone,

Ive got about 2.5 years of my DMP to run, which means I am 2.5 years into it already :j. Anyway I have been thinking about repairing my credit rating. Sooooo I have applied for Cash Plus Mastercard and I am about to go and pay the inital charges to get it set up. They did try to charge me an extra £9.95 for an additional card holder which I body swerved and once I have paid the money and activated the card I am gonna apply for the creditbuilder account. Ihave been accpeted by Vanquis for their credit card at 39.9% APR and 41.1% for cash. They even offered to transfer up to £300 into my current account today and forego the cash advance fee but I said no.

Now I think the having the cashplus creditbulder card is a good idea and will help repair my credit rating as will the Vanquis card IF I use it sensibly which I will. And that is the key aint it. I remember in the dark days of my LBM that I didnt want a CC or Loan ever ever again, but the harsh reality of modern living is that you need to be credit worthy. But for me the sad thing is for the likes of people that have debt and are doing something about it, when rebuilding their life they are seriously restrained because if they do get credit they get charged the earth for it. I know its a trust thing with the companies, of course it is and it has always been like that but it does bring home to bare the indiscretions of my past that will probably echo in my life for many years to come; lets hope not. GF x

rog2

Hi GF

Cashplus - Yes

Vanquis (Provident) - No

Good luck

sammy115

Why not vanquis? If the card is only going to be used for building up credit?

Dunno flares. Not sure if I understand this rebuilding the credit malarky. Surely your file will be bad until everything has dropped off?

Interesting question:T

rog2

sammy115 wrote: »

Dunno flares. Not sure if I understand this rebuilding the credit malarky. Surely your file will be bad until everything has dropped off.

Exactly, sammy.

You also asked me why I don't think Vanquis is a good card - it is a 'sub-prime' card, with extortionate interest rates, and a not very good reputation of dealing with its 'debtors'.

Difficult to see how it can be used to 'repair' a person's credit rating.

Cashplus is pre-paid - you know exactly what you are getting into and it is, in my experience, a very useful card to have for exactly the reasons that GF has outlined.

Again, though, I do not see it as a 'credit rating' repair tool.

immoral_angeluk

The question is, can you be certain you won't run it up again? Also are there any clauses in your DMP which prevent you from taking out new credit?

ginormousflares

Rog - Hi mate, I agree with you entirely on the old Vanquis card and I did umm and arr but I have absolutely no intention of 'abusing ' it. It will be there purely for using and immediate repayment. The Cash Plus Creditbuilder shows up on your credit record as a loan that is being successfully repaid. I think it costs £60 for the year. Again with the Vanquis it will show up as a CC being repaid.

Sammy - Hi Sammy, yes I agree Im not sure about the credit rating but I am hopeful that any star in a storm will be light well received if you get my drift.

I-A - Hi, I think I am not allowed to obtain further credit during the DMP, a debit card or even a cheque book. Whether or not Payplan will pick up on these I don't know. If it does jeopordise my DMP then I will snowball the remainder. Which I know begs the questions why don't I just snowball and repair the credit file naturally as it where.

I am also aware that the card fees associated with the Cashplus and the creditbuilder element make it a luxury if you like in my SOA, but as my financial situation has increased somwhat since my DMP began coupled with the original debt almost halved I would have an ample amount to chuck at it. Maybe, just maybe it could be worth ditching the DMP (not discounting the lifesaver it has been) and snowballing from here on in? Some if not all of the creditors may not pick up that Ive ditched the DMP and I may just may get a few months of no interest charges before they realise as well. Ummm lots of hings for me to think about. Thank you all though

rog2

ginormousflares wrote: »

The Cash Plus Creditbuilder shows up on your credit record as a loan that is being successfully repaid. I think it costs £60 for the year. Again with the Vanquis it will show up as a CC being repaid.

Hi gf - the whole question of 'credit repair' comes up fairly regularily and, yes, whilst the 'CreditBuilder' may, indeed, show up as a loan that is successfully being repaid, it can not mask any defaults that may also appear on your crf.
Unless any defaults are wrongfully placed on your crf - in which case there are mechanisms for having them removed - the only way that they will disappear from your crf is with 'time', i.e. after 6 years whether satisfied or not.
The whole question of 'credit scores' is, in itself, subjective as they are only ever intended as an 'indicator' of your creditworthiness. The final decision as to whether to grant you credit will, quite rightly, rest with the creditor, who will use his own criteria, that may, or may not, be affected by your 'clinical' credit score.

ginormousflares

Aye thanks Rog, I just hope the old 6 year thing doesnt completely write me off me when I come to buy a house in about 5-6 years time. GF

rog2

ginormousflares wrote: »

Aye thanks Rog, I just hope the old 6 year thing doesnt completely write me off me when I come to buy a house in about 5-6 years time. GF

It won't, gf. Mortgage Lenders are not the same as normal 'credit' lenders in that they will be lending against the collateral in the house, rather than on your 'credit history'. It may well be that you are, in some way, penalised in the interest rate, but this, generally, will only last for a couple of years, after which time you will most likely be able to revert to 'normal' mortgage interest rates.
Just don't be put off from going to the mainstream mortgage lenders - most of them will have a scheme for people with, shall we say, not the most impeccable of credit histories.
Avoid, at all costs, the 'sub-prime' lenders who will be out to make easy money from what is after all your perception of how others see you.
Anyway - aren't you a bit young to be considering mortgages? :rolleyes: :rotfl: :rotfl:

xgingerx

"I don't think Vanquis is a good card - it is a 'sub-prime' card, with extortionate interest rates, and a not very good reputation of dealing with its 'debtors'."

Well Im not advocating them at all BUT I added them on my DMP a year a go and they stopped interest immediately and accept the DMP payment from the CCCS as one of the first so cant fault them from my side.

But the card is ok IF you use it and pay in off in full every month, using it this way is a GOOD way to show a nice payment record at the agencies with a load of green 00000's