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'Bad Credit' Credit Cards Article Discussion

edited 10 June 2010 at 3:47PM in Credit Cards
93 replies 579.4K views
Former_MSE_DanFormer_MSE_Dan Former Web Editor
1.6K posts
edited 10 June 2010 at 3:47PM in Credit Cards


This thread is specifically to discuss the content of the article:

'Bad Credit' Credit Cards
Use them to rebuild your credit rating


To discuss or ask a question about this article: click reply


MSE Web Editor, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.

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Replies

  • The recent rake hikes from cap 1 has brought out alot of people who are borrowing money on sub prime cards which is alarming as Martin states just use the to rebuild your credit.

    If people are borrowing on them they can fall in debt and with the high rates risk damaging their credit further rather than getting back into the mainstream.
  • Hi,

    I am an ex DFW and now have no debt, I have a (settled) CCJ on my file from 5 years ago and am looking at re-building my credit rating.

    To this end I have applied for the Barclaycard initial offer, I have been accepted and will be using this card as suggested by Martin (i.e. put petrol on it (about 200 quid per month) and pay it off in full every month).

    Would it be better to get one (or two) more cards and do the same thing? Or will one card be sufficient?
    "I don't want to sound cold and un-caring, but I am those things so that's the way it comes out" - Bill Hicks
  • Hi, the forum and website is very helpful.... However, having limited knowledge of credit rating and living in scotland - I wondered if CCJ's are the same as a trust deed? My partner and I have a joint TD and having been paying this back for 18 months now. It is getting to the point that we want to improve our credit rating and these cards seem a useful option. Is there any point applying for these cards with a TD on our credit history?

    Thanks PC
  • I had to result in an IVA some six years ago which I completed successfully and later this months all trace of any defaults and the IVA itself will be wiped from my credit report leaving about eight entries on my report for current accounts and credit that have been either settled properly or managed correctly. This includes a cashplus credit builder that had also been completed and settled. I want to apply for a "proper" credit card (i.e. not prepaid). As there will be nothing adverse on my credit report and a history of properly run and/or settled accounts going back to 2005 should I stll go for one of the "bad credit" cards or try a more mainstream one? Also should I avoid companies where I have had problems before even though years ago?
  • hi Clavius

    Im sorry i dont have an answer to your question, but i was wondering if i could get your advice, im currently 3 years into a 5 year IVA and was wondering whether you took out the Cashplus Credit builder during your IVA or was it after you had completed it. Any help would be very apprepicated
  • izoolsizools Forumite
    7.5K posts
    ✭✭✭✭
    incesticde wrote: »
    Hi,

    I am an ex DFW and now have no debt, I have a (settled) CCJ on my file from 5 years ago and am looking at re-building my credit rating.

    To this end I have applied for the Barclaycard initial offer, I have been accepted and will be using this card as suggested by Martin (i.e. put petrol on it (about 200 quid per month) and pay it off in full every month).

    Would it be better to get one (or two) more cards and do the same thing? Or will one card be sufficient?

    Now that you have a barclaycard initial (the hardest to get of all the sub prime cards) I would say you have a long term partner.

    As long as you continue to run the account well, they should give you regular decreases in interest and limit increases. It may help their scoring system to leave a miniscule balance on the card now and again so they make a little interest, but that is up to you.

    Once you have paid your sixth statement it would be worth calling them and say you are considering closing the account and would like to speak to their retentions team. The retentions team should then decrease your APR and increase your limit, so in effect, your Barclaycard Initial can slowly but surely become your long term mainstream card.

    You can also apply for a Barclaycard Breathe once you've held the Initial for over six months, and the scoring is heavily weighted on the Initial card account conduct.

    I've already had my barclaycard initial APR decreased once and I've only held it since November
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • izools wrote: »
    Now that you have a barclaycard initial (the hardest to get of all the sub prime cards) I would say you have a long term partner.

    As long as you continue to run the account well, they should give you regular decreases in interest and limit increases. It may help their scoring system to leave a miniscule balance on the card now and again so they make a little interest, but that is up to you.

    Once you have paid your sixth statement it would be worth calling them and say you are considering closing the account and would like to speak to their retentions team. The retentions team should then decrease your APR and increase your limit, so in effect, your Barclaycard Initial can slowly but surely become your long term mainstream card.

    You can also apply for a Barclaycard Breathe once you've held the Initial for over six months, and the scoring is heavily weighted on the Initial card account conduct.

    I've already had my barclaycard initial APR decreased once and I've only held it since November

    Thanks.. bloody useful answer that mate
    "I don't want to sound cold and un-caring, but I am those things so that's the way it comes out" - Bill Hicks
  • Hi Redrum.
    I took out a Cashplus Creditbuilder during year six of my journey back to solvency. That was after I had completed all the payments of the IVA but whilst all details of defaults and the IVA were still on my credit report. There is nothing stopping you applying now, they seem very easy to get but you must keep up the monthly payment to avoid getting into more trouble.
    Well done for sticking with the IVA, I know from experience that it's sometimes seems a never ending slog but it's worth it, believe me. There is a real satisifaction and good feeling about watching all those defaults and other details dissapear from your credit report on the day after the sixth anniversary of your IVA start. Good luck.
  • Hi

    I have had to get one of those 'bad' credit card to build up my credit rating as I have never used a credit card. However when I checked my credit report with Experian there is no sign that I have a credit card registered to me!

    I have a Capital One card and have had it for over a year. Why does this not show on my report and does anyone know what I can do to remedy this?

    thanks, all responses very welcome!
  • KC22 wrote: »
    Hi

    I have had to get one of those 'bad' credit card to build up my credit rating as I have never used a credit card. However when I checked my credit report with Experian there is no sign that I have a credit card registered to me!

    I have a Capital One card and have had it for over a year. Why does this not show on my report and does anyone know what I can do to remedy this?

    thanks, all responses very welcome!


    Most likely a discrepancy over the address registered with Experian and the one on your card - best to speak with them over the phone - they can be quite helpful. I have today been advised that they may have account information that does not show where the address is slightly out of sorts.
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