Credit Card/Credit Rating advice required

buctownbully

Hi...long time reader but never posted previously.

Brief description of circumstances:

On my credit report (credit expert/experion), I have one default (28/04/2008). The default was entirely fair (I essentially took the head in the sand approach to my finances from summer 2007 to early 2008) and I went on to repay in full the outstanding balance (card was amazon.co.uk through Halifax).

I had two other cards, which are now "settled", Capital One and Amex.

I was initially turned down for a couple of products and decided not to reapply to avoid the same happening and quite frankly didn't actually need to. However, last September I applied for a Natwest Current account and was refused. I was additionally refused for an MBNA card in November.

This is when I first came here and off the back of that I decided to apply for a Vanquis card. Got it in Jan, £500 limit (they just bumped limit to £1000 in April), using it for purchases every month, direct debit pays minimum payment each month, pay off the rest bar a nominal amount (c. £5) by debit card at the start of each statement period.

I am not desperate for anything right now, but I would like to ask the following questions:

1. bottom line is I don't want to apply for anything and get rejected so how long should I wait before applying for a more traditional (non sub-prime) credit card?

2. the MBNA card was actually through work and has extremely advantageous terms (5.9% APR typical (variable); No foreign exchange fees; 1.5 reward points for every £1 of retail spend) and would be the ideal credit card to apply for but is that completely off limits whilst default is on file and now I have been declined once?

3. will the default prevent me from successfully applying for a mortgage?

My thanks in advance

Tim

BugsyBrowne

buctownbully wrote: »

Hi...long time reader but never posted previously.

Brief description of circumstances:

On my credit report (credit expert/experion), I have one default (28/04/2008). The default was entirely fair (I essentially took the head in the sand approach to my finances from summer 2007 to early 2008) and I went on to repay in full the outstanding balance (card was amazon.co.uk through Halifax).

I had two other cards, which are now "settled", Capital One and Amex.

I was initially turned down for a couple of products and decided not to reapply to avoid the same happening and quite frankly didn't actually need to. However, last September I applied for a Natwest Current account and was refused. I was additionally refused for an MBNA card in November.

This is when I first came here and off the back of that I decided to apply for a Vanquis card. Got it in Jan, £500 limit (they just bumped limit to £1000 in April), using it for purchases every month, direct debit pays minimum payment each month, pay off the rest bar a nominal amount (c. £5) by debit card at the start of each statement period.

I am not desperate for anything right now, but I would like to ask the following questions:

1. bottom line is I don't want to apply for anything and get rejected so how long should I wait before applying for a more traditional (non sub-prime) credit card?

2. the MBNA card was actually through work and has extremely advantageous terms (5.9% APR typical (variable); No foreign exchange fees; 1.5 reward points for every £1 of retail spend) and would be the ideal credit card to apply for but is that completely off limits whilst default is on file and now I have been declined once?

3. will the default prevent me from successfully applying for a mortgage?

My thanks in advance

Tim

Yes mate unfortunately you will have to wait until 2014 until a prime card will lend to you,and same with the mortgage while that default is on your report no one will entertain you..
you need to wait 6 years from the exact date you defaulted

king100

Ok Tim

The default will take 6 years from the date when it was settled.

Firslty go and signup to the 3 main credit reference agencies.

If you havent signed up before you can get a 30 day trial.

REMEMBER if you dont want to use the service you must cancell before the 30 days.

Personally I am paying for mine as I am in similiar situation.

You can get a credit rating or credit score from them, this will let you know where you stand in relation to what lenders think.

Check out these relevant pages on here

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

How to deal with your credit rating

and this one who uses what with each credit agency.

http://www.moneysavingexpert.com/cards/credit-reference

I personally search around the same time each month or every other month. This will show on your report as a search, so lenders will see this.

Do not however do multiple searches just because you are declined as this shows desperation.

Hope that helps


Depending on what your rating is it will effect your mortgage yes.

Tixy

You will probably struggle to get any of the best deals around with a default on your file.
It is possible to get a mortgage with a default but certainly not at the best price.

I would never pay for your credit score as it is essentially meaningless, but it is worth knowing what is on your full credit report so worth checking that periodically, either by the free trial or once used by the £2 statutory report.

BugsyBrowne

king100 wrote: »

Ok Tim

The default will take 6 years from the date when it was settled.

Firslty go and signup to the 3 main credit reference agencies.

If you havent signed up before you can get a 30 day trial.

REMEMBER if you dont want to use the service you must cancell before the 30 days.

Personally I am paying for mine as I am in similiar situation.

You can get a credit rating or credit score from them, this will let you know where you stand in relation to what lenders think.

Check out these relevant pages on here

http://www.moneysavingexpert.com/loans/credit-rating-credit-score

How to deal with your credit rating

and this one who uses what with each credit agency.

http://www.moneysavingexpert.com/cards/credit-reference

I personally search around the same time each month or every other month. This will show on your report as a search, so lenders will see this.

Do not however do multiple searches just because you are declined as this shows desperation.

Hope that helps


Depending on what your rating is it will effect your mortgage yes.

Also don't do a credit score because experian & equifax credit scores are not like how the banks will score you,so remember you might have a credit score of 900 say from experian,but the lender might only score you 400,take no notice of credit scores you pay for and remember you will not get a prime card with a default..

king100

Tixy wrote: »

You will probably struggle to get any of the best deals around with a default on your file.
It is possible to get a mortgage with a default but certainly not at the best price.

I would never pay for your credit score as it is essentially meaningless, but it is worth knowing what is on your full credit report so worth checking that periodically, either by the free trial or once used by the £2 statutory report.

credit score essentially meaningless in what sense?

I pay from my credit score every 6 months, it gives me an overall picture of my how well my credit is getting rather than trying to work it out myself. I know when things will come off my file and which ones are going well. Overall i personally think they are a good indicator of how you are doing.

BugsyBrowne

king100 wrote: »

credit score essentially meaningless in what sense?

I pay from my credit score every 6 months, it gives me an overall picture of my how well my credit is getting rather than trying to work it out myself. I know when things will come off my file and which ones are going well. Overall i personally think they are a good indicator of how you are doing.

If they are that good mate how come they are giving people with defaults scores of around 950 which is excellent,but wonder why when they apply they get rejected..

king100

star-fire wrote: »

Also don't do a credit score because experian & equifax credit scores are not like how the banks will score you,so remember you might have a credit score of 900 say from experian,but the lender might only score you 400,take no notice of credit scores you pay for and remember you will not get a prime card with a default..

If the banks use experian and equifax to get their rating why would the scores be any different.

As far as I was concerned you have to fill certain criteria to be accepted for certain credit cards and one easy way to decilne is if your score on experian or equifax is say under 900. Then they will start to look at different criteria.

Tixy

king100 wrote: »

credit score essentially meaningless in what sense?

I pay from my credit score every 6 months, it gives me an overall picture of my how well my credit is getting rather than trying to work it out myself. I know when things will come off my file and which ones are going well. Overall i personally think they are a good indicator of how you are doing.

In the sense that it is what is on your credit report that affects whether or not you will get credit as that is what lenders see. If you read and understand the report it is wasted money to pay for the score.

It is meaningless in the sense that frequently people post on here to say they have a score of 999 and cannot get a new loan/card etc. They assume they should be able as they have such a good score, but in fact that is not what lenders are looking at.

king100

star-fire wrote: »

If they are that good mate how come they are giving people with defaults scores of around 950 which is excellent,but wonder why when then apply they get rejected..

Please show me report with default who has 950 on it?

king100

Tixy wrote: »

In the sense that it is what is on your credit report that affects whether or not you will get credit as that is what lenders see. If you read and understand the report it is wasted money to pay for the score.

It is meaningless in the sense that frequently people post on here to say they have a score of 999 and cannot get a new loan/card etc. They assume they should be able as they have such a good score, but in fact that is not what lenders are looking at.

Its a good indicator if you are trying to build your credit that you are actually getting it better.

Peopel with 999 as the worst people to lend to. They will pay everything off ontime and in full. Thats not what these companies want.