Have I made a boo boo????

impulsive

I didn't think much of it at the time but now i'm a bit :huh:

Basically i'm currently in a trust deed. I'm due to make my last payment on 1st July so my thoughts now are to clean up my file and start to rebuild my credit as i'd like to get a mortgage in the future.

So I did a bit of research and got myself a Cashplus Credit Builder pre-paid MasterCard a couple of weeks ago.


However in my trust deed I agreed not to obtain anymore credit until it was completed.

Is this classed as CREDIT? I mean I need to put money on the card to spend it, but at the same time my "credit builder" is classed as a loan is it not?

Do you think this will affect me in anyway?

nomoneytoday

AFAIK if you prepay then it's not credit. Is it?

[Deleted User]

nomoneytoday wrote: »

AFAIK if you prepay then it's not credit. Is it?

I'd agree. And since they don't run credit checks for the cards, it could never show up anyway.

gabixli

I would call the Citizens Advice Bureau just to double check.

mostlycheerful

impulsive wrote: »

I didn't think much of it at the time but now i'm a bit :huh:

Basically i'm currently in a trust deed. I'm due to make my last payment on 1st July so my thoughts now are to clean up my file and start to rebuild my credit as i'd like to get a mortgage in the future.

So I did a bit of research and got myself a Cashplus Credit Builder pre-paid MasterCard a couple of weeks ago.


However in my trust deed I agreed not to obtain anymore credit until it was completed.

Is this classed as CREDIT? I mean I need to put money on the card to spend it, but at the same time my "credit builder" is classed as a loan is it not?

Do you think this will affect me in anyway?

I don't think so, it's only your own money, no borrowing, just usefulness for you. Don't worry. You're trying too hard. Slooow doooon. Relax. Take it easy. Take a deeeep breath.

Now exhale, don't just hold it in.

Good luck.

BettySpofkins

Deleted_User wrote: »

It could never show up anyway.

Which raises the interesting question of how these types of cards could help anyone build credit?

YorkshireBoy

BettySpofkins wrote: »

Which raises the interesting question of how these types of cards could help anyone build credit?

The answer is best described as 'via a technicality'...

http://www.moneysavingexpert.com/cards/bad-credit-credit-cards#improve

Scroll down to "The last resort! Buy a prepaid card"

MCGONIS

Hi. Can you explain a trust deed? It seems you can run your credit up and then after a few years maybe get more credit?

I got a sales call today from 0141 342 2770 and they were going on about new Government legislation but I needed to get my borrowing to £7500 before it would be wiped.

I am confused now!

Niksan

MCGONIS wrote: »

Hi. Can you explain a trust deed? It seems you can run your credit up and then after a few years maybe get more credit?

I got a sales call today from 0141 342 2770 and they were going on about new Government legislation but I needed to get my borrowing to £7500 before it would be wiped.

I am confused now!

Through a bit of digging, that number belongs tohttp://www.easytocleardebtsolutions.co.uk/WhatWeDo.aspx To me it has the hallmarks of avoid, but that's just a blind hunch, mainly due to the site being registered as an individual rather than a business.

impulsive

MCGONIS wrote: »

Hi. Can you explain a trust deed? It seems you can run your credit up and then after a few years maybe get more credit?

A trust deed is like the Scottish equivalent to an IVA.

It runs for 3 years in which you pay a certain amount of money each month to your trustee and after that time each of your debtors gets a payout, usually for less than you owe them. This settles your debts with your debtors.

I would certainly NOT advise running up more credit just so you can enter into a Trust Deed. It ruins your credit rating and if you owe less than the £7500 required to enter it then i'd say your best option would be to try and cut back on your outgoings to clear your debt.

I was stupid when I was younger. The banks threw credit at me and, like most people, I took what I could. I was stuck in a rut paying minimum payments to credit cards and getting nowhere, so this was my last resort. It has worked for me. Not only in the sense i'll be free of debt but perhaps MORE in the fact that I now budget very strictly and now I go without the "luxuries" I wouldn't have thought twice about throwing on the credit card because I either can't afford them or quite simply don't really need them.