Credit card for poor credit

caz01_2

Hiya

Somebody on this site mentioned mastercard prepaid card. My Friend has a poor credit history and I was wondering if this would help build their credit rating back up again.

mad

Hi have a look at this section of the site: Improving your credit score

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101485056,23650,#improving

part of it reads

'Building a good credit history/repairing past problems. Credit scoring tries to predict your behaviour. Not having a credit history causes problems as lenders can’t predict your behaviour, meaning you’re a greater risk and more likely to be rejected.

If you can’t get credit, sadly the solution is apply for hideous 30%-ish rate credit cards offered by the likes of Monument, the Associates, Barclaycard and Capital One – which offer special ‘high risk’ cards alongside their normal ones.

Use these for 6 months to a year, spending a little every month and strictly always repaying in full, so there’s no interest cost. After that you should’ve built some credit history allowing you to move into the mainstream. This tactic is also useful for those who’ve defaulted in the past.'

caz01_2

Thanks, I've seen that bit I was wondering if anyone could recommend a card that they had tried and had success with. Capital 1 knocked her back already for high interest card. It doesn't look very promising.

andrew_tr1

hello

your friend could try the vanquish card. it is very high interest rate (39.9%) but they tend to give them out.

i was told the one way to up your credit histroy was to get a credit card and then buy little things on it BUT importantly pay it off in FULL every month! this will show up on your credit file and make you look like a good payer! although you have to get a credit card first!!!

another way to bulk out your credit file and get some good points, is to get a contract phone and pay by DD so that you dont miss any payments! again it will make you look like you pay your bills on time.

hope that helps

andrew


link:
http://www.vanquis.co.uk/home/Home.aspx

The_Boss

Yeah, having phones on contract is a useful way to boost your credit rating - but only if you pay on time.

By the way, paying off in full doesnt improve your credit rating more than paying off th eminkimum balance. Its the paying the due amount and being on time that are the important factors. In the Vanquis case, it makes sense to pay it off in full to ensure you dont get hammered by the interest.