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What would you do in my situation?

Carlos27
Carlos27 Posts: 11 Forumite
Debt-free and Proud!
edited 7 June 2011 pm30 12:57PM in Debt-free wannabe
Light bulb moment was in 2010 when I realised I needed to sort my finances to support my girlfriend who was going self employed and very good with money. I have been promoted in the last 12 months and now earn about £30,000.

I have cleared in the last 12 months:
£8,000 car finance (may2010)
£1,100 hovering around max balance on my barclays card (Dec2010)
£1,800 I owed family (Mar2011)
£1,000 loan for private medical care. (feb2011)
£1,000 overdraft (june2011)

I owe nothing other than my mortgage.

In 2008 my ex-girlfriend used my name and purchased some next directory goods the statement went to her address my previous address which I didn't change or cancel the account. She didn't pay the bill. I was none the wiser and after 3 missed payments received a default. I payed this off as per instructions from the debt collector and tried having the £150 default removed by next but was unsuccessful.

I have 3 credit cards

barclays 25%apr limit £1,100 opened in 2008 2 missed payments that year and 1 in 2009 0 balance.

capital one progress 29%apr limit 1000 0 balance opening in February 2011 no missed payments

vanquis gold 34%apr limit £2,250, £200 balance use this for petrol and food, payed off in full every month.

I just got a low rate mortgage 2.8% fixed for 5years £79,000 os property worth around £115,000. Its a staff mortgage (lucky because of default). Moved in March 2011 now appearing on Electoral roll.

Would you cancel any of the cards?
Which would you use and how often?
Would you re-attempt to have the default removed?
would you speak to the bank about a credit card after cancelling?

Comments

  • Good for you on paying all that off!

    Well, everyone would probably do this differently. I know you're paying it off every month but why put the petrol and food on the highest APR? If you're trying to "rebuild" your credit by doing this, you only need one card, so cancel the vanquis and cap1 and just keep the barclaycard. If you wanted you could attempt to get a lower APR card but there's not much point if you're paying it off monthly anyway.

    I don't think you stand any real chance of having the default removed if it was in your name and you allowed her to use the Next card. Unless you plan on getting back into debt you won't NEED any credit until you re-evaluate your mortgage in 5 years time, by which point the default will be gone. So really with no debt, a 5 year decent mortgage, I'd stop worrying about your credit rating, use a credit card occasionally, and enjoy being debt free!
    :D DEBT FREE 3rd Sept 2011 :D
    (Debts at highest £15.8k Nov '08)
    Student Loan paid off July 2014
    First Direct Regular Saver #2: £2700 ** Santander 123: £13,106
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  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Personally, I would close all but one of the cards, and use it sparingly, or where the insurance comes in useful (things over £100 etc). Pay it off in full whenever you do it. If you don't need the others, then close them.

    With regard to the default, unless you take action against your ex for identity theft or fraud, which it was, then you won't have much luck asking again.

    Why would you speak to the bank about a credit card after cancelling it? I don't understand your question.

    Good luck
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • moneypuddle
    moneypuddle Posts: 936 Forumite
    I'm not sure what I'd do but you have done incredible well so far, so I'd trust your own judgement because you're obviously good at this :T
  • Tixy
    Tixy Posts: 31,455 Forumite
    Working backwards

    With the default I don't think there is much chance of a card from the bank at the moment.
    I think the chance of the default being removed is slim unless you report girlfriend (and the creditor would expect you to report her to the police as well)
    I would use one card most months and pay off the following month to maintain a positive credit history.
    I'd probably keep 2 cards open, and close the third (I'd use the second card occasionally as the first to keep it active so they don't write to close it).
    (I always like to have 2 cards in case of emergency).
    I don't think it really matters which card you close in your position, presumably you don't intend to pay interest on them so the APRs don't really matter.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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