Is it worth trying Credit Builder Cards

mrsmoneyworries

Hi all

Im a new poster here so please be gentle with me.

I was AD from BR on 13 October :jand have heard lots about Credit Builder Cards.

I would welcome any advice i.e. if they're worth it, who are the best etc etc.

betterlatethannever

Hi and welcome MMW:j

I applied for a Barclays Credit builder card just after ED, but got turned down for it.
All i know is that they only offer a low amount of credit- usually £200-£400 and at fairly high APRs. I do wonder if they're aimed more at people with no credit history, than someone with a bad credit history:rolleyes:
Not much help to you i know, but hopefully someone else will have more advice.

Three_Clicks

mrsmoneyworries wrote: »

Hi all

Im a new poster here so please be gentle with me.

I was AD from BR on 13 October :jand have heard lots about Credit Builder Cards.

I would welcome any advice i.e. if they're worth it, who are the best etc etc.

We was advised by our IFA to take out as much credit as possible to get the "green ticks" on our credit file.

There are mortgage companies that will give an ex BR a mortgage after JUST 3 years!!! So that is our goal...

MicheH

Three_Clicks wrote: »

We was advised by our IFA to take out as much credit as possible to get the "green ticks" on our credit file.

There are mortgage companies that will give an ex BR a mortgage after JUST 3 years!!! So that is our goal...

I'm concerned with that advice to be honest, after doing much research on bankruptees gaining a mortgage even after the 6 years I found that showing that you are no longer interested in gaining lots of credit will stand you in better stead.. anyone got any thoughts on this?

There are ways to get you're credit rating healthy without gaining oodles of credit surely.. mobile, well managed current accounts, paying bills on time every month, making sure there's enough in your account to allow direct debits to come out without a problem, maybe having one credit card that you use monthly with a small amount and pay off in full each month and on time.

Applying for oodles of credit may have a negative effect on your credit rating especially at 3 years after BR as the chnce of being rejected will be high and any rejections will be noted on your file.

There's many people on the board who know more than I do, I just wanted to tell you what i'd found out about standing yourself in the best light for another mortgage after BR.

philnicandamy

your IFA is very very sadly mistaken...getting "oodles" of credit certainly IS NOT the answer and thats of course IF you can..creditors will see credit files and decline bankrupts till at least 6yrs have passed.....and as far as a mortgage?? someone who's never been bankrupt will struggle in the current financial crisis so chances of a discharged bankrupt getting one after 3yrs? more chance seeing lord lucan riding shergar down blackpool beach

Three_Clicks

Sorry I should have explained it more...

Its NOT about gaining THOUSANDS of £££ of credit, its about getting the "green ticks" on one's credit file.

Even paying your car & house insurance monthly by DD will improve your credit file & rating.

Credit Builder by CashPlus and Gordoba are loans UNDER £60.00 These are the type of cedit I am refering to...

philnicandamy

the one thing to improve your file?? TIME

(once the bankruptcy drops off then consider it....till then its just damage limitation)

MicheH

I wasn't talking about masses of money either I was talking about the amount of credit you gain you see.

If you get credit and just have £30 on each it is still showing lenders, who lets face are going to have to tighten up their criteria, that we're easy with gaining credit, that we havn't learnt any lesson and may end up having to do the very same again (br) in the future. Have so many bits of credit opened on your file won't show you in a good light. I have read this time and time again.

Best just to be organised, run accounts perfectly, use 1 credit card and pay it off every month. Like Phil says - time, oh and a hefty hefty deposit.

Three_Clicks

MicheH wrote: »

I wasn't talking about masses of money either I was talking about the amount of credit you gain you see.

If you get credit and just have £30 on each it is still showing lenders, who lets face are going to have to tighten up their criteria, that we're easy with gaining credit, that we havn't learnt any lesson and may end up having to do the very same again (br) in the future. Have so many bits of credit opened on your file won't show you in a good light. I have read this time and time again.

Best just to be organised, run accounts perfectly, use 1 credit card and pay it off every month. Like Phil says - time, oh and a hefty hefty deposit.

Thats your view ~~~ BUT its NOT ours...

MicheH

Ok, no need to use capitals, it come across as being rather rude. It is my view and many other people's view from research. I'm thinking sub prime mortgage offers and the like.

I was just a little concerned that you had been given wrong advice, I wanted to get the point across that maybe you had misunderstood.

philnicandamy

Three_Clicks wrote: »

Thats your view ~~~ BUT its NOT ours...

nothing to stop you trying......IF you can find a creditor thats willing to give a discharged bankrupt credit then well done you :rolleyes:
meanwhile your "perfect" credit file will be hammered with creditor searches when you apply for anything....meaning again your files will put any potential lender off