How long till eligible for decent cards

GBMatt

Hi,

A vague question I know. If someone gets a card such as Vanquis to rebuilt a ropey credit rating how long would one expect to remain on that card before better lenders would consider them? I understand there are a lot of factors but what is people's experience?

Matt.

izools

Yup there are a lot of factors!!

Perhaps you could tell us a little about your history?

If say you've not had credit before, and take out a Vanquis and Cap 1 Classic card (perhaps a Three Sim Zero tariff as well) and leave it for 12 ~ 18 months, you should be hot to trot getting a high street deal.

If however you've had CCJs and / or Defaults in the past, you might need to wait until they drop off (the full six years). One default from 3+ years ago amidst good accounts elsewhere shouldn't be a problem, nor should serious arrears be, again as long as it was 3+ years ago...

What's your credit history like?

GBMatt

I had a credit card and an overdraft that about 4 years ago both defaulted, I had racked up a bunch of debt while a student and although just managed to keep most of it under check these 2 got out of control and ended defaulting, all has been paid off about 2.5 to 3 years ago, recently I've been able to get a mobile phone contract and a couple of small credit agreements and have just applied for a Vanquis card as I understand they are fairly easy (in comparison to others) to be accepted for. Things seem to be moving in the right direction, just curious as to how much better it will get short to medium term.

Matt

izools

So two defaults both 3+ years old and satisfied.

To be fair with the Vanquis card, Mobile contract, and Bank Account on your credit file being run properly you should be alright with some mainstream lenders once all the accounts have been open a year.

Just make sure to clear the vanquis bill in full each month! They will increase your limit again and again but the APR will remain sky high - so don't be tempted, the interest will cripple you

The Sygma (Silver, Flybe, JJB, etc) card and Tesco card can be forgiving of people in your position but wait until your Vanquis account is a good year old before applying

alfred64

I am still rebuilding after bankruptcy in 2002. Eight years in June - and quite a number of mainstream providers will still not touch me.
Have had a Nationwide flex account for over 4 years but they still wont give me a debit or credit card.
Vanquis were the first provider to issue me a card and limit increased in stages to the £2000 max, but capital one limit is still £100 after 2 years next month.
Sygma seem to trust me more. I have 4 cards issued by them, with generous limits, £3600 , £2000 , £1000 and £250.

izools

alfred64 - there should no longer be any record of your bankruptcy or associated debts on your credit file, there shouldn't have been for 18 months now!

If you are being declined for things, I'd suggest it's not because of the BR but something else (from what you said you have six credit cards - too many for most lenders)

ARTooD2

On a simmilar note (well not really but meh). I am currently applying for things through my parents address as I know lenders like stability etc and I am on the electoral roll there. If I change my address how long before lenders see it as "stable" again?

izools

It goes on a sliding scale. Simply a matter of "the longer the better"

As long as the rest of the information in your application is good (long time with bank and employer, no dependants, full time permanent employment etc) it shouldn't have too much of an impact, but I wouldn't bother applying for anything until you can put 6 months + on the application forms

GBMatt

How long does it usually take to hear back from the Vanquis application? On applying online I wasn't given an instant decision.

Matt.

izools

I don't think anyone gets an instant decision...

...No less than a week, normally 10-14 days. If you're on the electoral role and have at least one active account at your current address they shouldn't need any ID. You'll know you've been accepted when (if) you get a phone call offering a cash advance, insurance, etc etc. Say NOOOOO to all of it

alfred64

izools wrote: »

alfred64 - there should no longer be any record of your bankruptcy or associated debts on your credit file, there shouldn't have been for 18 months now!

If you are being declined for things, I'd suggest it's not because of the BR but something else (from what you said you have six credit cards - too many for most lenders)

I have cancelled the vanquis. Only recently been given another by sygma. Others previously declined me, even when I had only one or two cards. So five cards - but Cap one is only £100, anyway.

I think the problem could be that despite all green 0's on my report - there are linked addresses - 3 in all - the oldest one I havent lived there for 11 years!
I have queried this with the cra - but as yet no reply.