Best way to use credit cards to rebuild rating

digitalphase

I applied for 3 sub-prime credit cards thinking I'd be lucky to get one, as none of them had an instant decision, however I've been accepted for all 3!

I am trying to rebuild my credit history after a default registered against me last year. This is the only adverse history aside from some '3's for missed payments, but these go off in a year or so.

I was planning to purchase something small each month on a card then repay in full each month.

Is the best method to use each card once a month and set them all to take the full payment? Or set them for minimum payment automatically then pay the rest off a few days later (heard this is a better method?).

The cards are Vanquis at 39.9% APR with £250 limit, Capital One with 34.9% APR and £500 limit and Aqua at 35.9% but not sure of limit yet as have to send agreement back first.

Capital One and Aqua will be easy to manage but I understand Vanquis has to be done over the phone, can you still set it for minimum payments by DD?

Also if I keep this up and have green 0's from all how long should it take my credit file to improve enough to be able to get a mainstream card or loan? Would like to buy a newer car in a couple of years.

kindofagilr

I dont think you are going to need all 3, if I would stick with Capital One if I was you

I had adverse credit and I got a CP1 card with a £200 limit (22% APR) which then then upped to £800.

My credit file didnt really get much better till the defaults on my account were gone though, I dont think having the Credit card help increase my score, I think my score just increased as the 6 years were up on my defaults if that makes sense?

digitalphase

Did you use the card each month and repaid in full?

Yeah I agree I probably only needed the one, I didn't think I'd be accepted for all 3. I will probably use the Capital One each month and use the other two occasionally and then repay in full.

It's OK for them to sit there with no balance on isn't it? I may as well get the cards as I've been accepted now so the searches will show on my file anyway.

CLAPTON

set up DDs for each card to pay in full.
nothing complicated is needed, just pay in full with no late or missed payments

digitalphase

I suppose one could be the card I use for fuel payments? That way it's a regular payment for something I have to get anyway and helps my file as well.

thriftymomma

digitalphase wrote: »

I suppose one could be the card I use for fuel payments? That way it's a regular payment for something I have to get anyway and helps my file as well.

Great idea!:money: