Repairing Credit - Will this work?

pultok

Hi... I know the answer is probably already on this site, but I can't get the search to work, so forgive me posting a new topic. About 9 months ago I paid of and cancelled my Capital One Credit Card which I have a couple of defaults on. I have read here somewhere that one way of repairing credit is to apply for a high interest Credit Card and pay it off regularly for about 6 months. Instead of going down this route, if I did the same with a card which I already have, would it have the same effect on my Credit Score? The problems with the Capital One card are the only problems I have had, but I have recently been refused credit. Hope someone can help

file_wizzard

pultok wrote:

Hi... I know the answer is probably already on this site, but I can't get the search to work, so forgive me posting a new topic. About 9 months ago I paid of and cancelled my Capital One Credit Card which I have a couple of defaults on. I have read here somewhere that one way of repairing credit is to apply for a high interest Credit Card and pay it off regularly for about 6 months. Instead of going down this route, if I did the same with a card which I already have, would it have the same effect on my Credit Score? The problems with the Capital One card are the only problems I have had, but I have recently been refused credit. Hope someone can help

Yes all lenders are looking for is a “clean” history trail of “0” on "on time" for 6 – 12 months

Also you say “a couple of defaults” can you explain a bit more, do you mean late payments ? as only 1 default per account can be registered

pultok

file_wizzard wrote:

Yes all lenders are looking for is a “clean” history trail of “0” on "on time" for 6 – 12 months

Also you say “a couple of defaults” can you explain a bit more, do you mean late payments ? as only 1 default per account can be registered

Maybe I have my terminology wrong! What I mean is that twice (in a row - stupid, I know!) I missed the monthly payment...

Thanks for the quick response... One more question - As I have had credit refused in the past two months, does that mean that the '6 - 12 month' period starts again?

file_wizzard

No not at all, each lender will have their own criteria for what they consider an “acceptable risk”

The aceptance criteria for high APR cards may let you get away with some late payments in the last 12 months, or a default say 13 months ago, however most main stream lenders can be very fussy and may have a policy that for e.g any late payments in the last 3 years ( even 1 month) is not acceptable to their risk profile