Re-building credit with Capital One

bertman

I have applied for and got a Capital One Visa card, I have checked and re-checked my credit file and don't have any defaults. I am aware though that my rating is poor and have read that these cards can re-build your rating.
Does anyone have any idea how long it takes or even how this works, my plan is to buy one weeks food shopping a month on the card and pay this off when the statement comes in. I am well aware that the APR is ridiculous so the card will stay locked away until we use it then locked away again.
Do these things work?

bottleofred

Hi Bertman,

Using these types of cards (sensibly as you have described) do help build your credit rating as long as the payments are all made on time and you do not exceed the credit limit etc. I would guess the use of such a card would strengthen your credit history over the period of 6-12 months as this will show other lenders a series of regular payments etc.

BigCraigJohn

A good way is to say for example buy all your petrol on the card then repay it every month as soon as the bill comes in. The credit card company will hate your guts but your credit rating will go through the roof. Just make sure you always pay it off every month although I imagine it will be a low credit limit anyway.

bertman

Thanks All, I have been given a £750 limit so quite low. I intend to do as I said, buy groceries once a month and pay off all once a month. At this APR there is no way I would do anything else with it.
We havent used a credit card now for over 12 months so it will be a little strange buying on a card again...