Vanquis card arrived today-guidance please

kerrypn

Hello

Sounds a bit daft I know. I was made BR in 2009 and this is my first ever credit card, taken out purely to improve my credit rating. I know to pay balance off in full every month-have set up DD for this-but any other advice?

When shall I try for Capital One? Is 6 months likely to be enough?

Many thanks in advance

drewwhonumba2

Congratulations on becoming eligible for credit so soon after BR!! that's real positive feedback.

Absolutely make sure that the balance is paid in full by direct debit...but you do want to use the card rather than it being dormant. What is usually suggested as a credit building technique is only to use the card for purchases that you would have made even without a credit card...groceries, petrol etc

This way you are not spending any more than you did as a result of being given credit however you are utilising the credit line. You also won't pay any interest which you really need to avoid doing as the rates are so high.

make sure that the direct debit comes out a few days after you have been paid rather than at the end of the month when you might not have enough money left in your bank account as this would not only mean you miss a payment on your Vanquis but will also be charged by your bank for going into an unauthorised overdraft.

One more point, do not setup any direct debit type agreement where payment regularly come off of your credit card (ie by paying your phone bill direct from your credit card) this isnt actually a direct debit but is a 'Continuous payment authority'. Basically you are able to cancel a direct debit by going into your bank however with a 'continuous payment authority' you have to rely on whoever you have set it up with to cancel it...and some people have had problems.

I hope that helps, and once again, congratulations....lots of nice green 0000's on your credit file very soon!!

kerrypn

Thank you, that is very helpful, much appreciate the advice. I think I will start paying for my shopping on it, that way I am also going to be able to keep a running total on groceries and pay it off straight away.
I was lucky with my credit file clean up plus British Gas and Barclays have been green ticking me each month.
Thanks for the info on DDs-I will defo not use CC for this, I am very strict with bills out of my account now, so I wont need to do this.

Many thanks

drewwhonumba2

No problem,

with regards to the Capital one, 6 months would be an absolute minimum, more likely 12 months given the bankrupsy....but then again there is no harm in trying, its only 1 search on your file, and to be honest you are doing well already so you may get another nice surprise

MorrisonsEmployee

Well done on getting accepted:TWaiting for my Vanquis card to arrive too - How long did you wait for it to be delivered?!

drewwhonumba2

whats your situation Morrisons? im always intrigued to find out about successes when people have adverse credit...also well done to you too

MorrisonsEmployee

drewwhonumba2 wrote: »

whats your situation Morrisons? im always intrigued to find out about successes when people have adverse credit...also well done to you too

:oUnsettled CC debt and 3 other defaults from 2006.

drewwhonumba2

legend, well done mate...no point settling!!! I recently had £700 barclaycard and £800 barclays bank unsettled defaults fall off...but to be honest, they'd had so much in charges i dont feel guilty not paying it back haha!!

To rub it in a bit more I have a barclays account with £1500 overdraft....bet your wondering how i managed that??? haha

kerrypn

Card took 10 days, but there have been a few bank hols-still waiting for the pin.

Thanks for the advice, I am looking forward to proving I can be careful with credit

Atom

drewwhonumba2 wrote: »

I have a barclays account with £1500 overdraft....bet your wondering how i managed that??? haha

Sure am - i have 1 satisfied default and can't get !!!!!! with barclays, probably an omen though.

PoppyHoppy

Well done. Welcome back to the world of credit.
My advice would be to check if they'd added there PPI, think they call in Repayment or Payment Option Plan. It's pretty hefty, and Martin's advice is you can usually get a better stand alone version. I had it... I was pretty desperate for the card at the time so don't really recall the details, but I can't see why I agreed to it. Waiting for Vanquis to send me my phone recording to see what was said and if I did actually agree to it as that's what they're claiming.