Repairing Credit

Beaded_Lady

Hi,

I am trying to repair my credit history as i cleared all my debts in September last year.

I have been advised to get a credit card with a high APR but am not to sure where to start or who may be best to apply to in my situation.

Also if i do get a card and i don't spend on it will it still help with my credit score or do i have to spend on the card to see it change.

All help appreciated.

The_Boss

1. Vanquis

2. Its making the monthly payments on time and at least the minimum amount that rebuilds, but having a balance near to your credit limit wont look too good.

Beaded_Lady

The_Boss wrote:

1. Vanquis

2. Its making the monthly payments on time and at least the minimum amount that rebuilds, but having a balance near to your credit limit wont look too good.

Thanks for this, not overly clear about 2nd point, care to clarify?

The_Boss

Sure thing.

When you get a credit card and spend money on it, you need to make a 'monthly minimum repayment' by a 'due date'.

It is making this payment by the due date that helps to build your profile. There is no such thing as a 'credit rating', but if lenders see a long history of you making the payments on time then that is a good thing.

As far as the other point goes - yes you do have to spend and pay back. If you have a balance on your card that is close to the limit (such as a £900 balance on a £1000 credit limit), then this can in some situations be held against you. It shouldnt be an issue with one card, but if you have 3 or 4 with over 75% of credit used then it might look like you are overstretched. But this only applies if you are looking for further credit in future and so may not affect you.

The interest rates on Vanquis and other 'rebuilder' cards are so high that you should be spending and paying it off in full every month. It doesnt matter how much. Use it to pay for a fiver of shopping in a supermarket and pay it all off at once so you dont get stung by the interest. That will then help you rebuild.

Beaded_Lady

Great stuff.

Many many thanks! :T

CLAPTON

it would suggest you always clear the full amount each month. vanquis charge an amazing APR.
in fact set up a DD to pay the full amount.

worldwide3rider

There is also an option for Barclaycard and Captial One who I got with bad credit no problems.

Beaded_Lady

I'll be paying immediately, ive learnt my lesson and wont go down that road again!!

Is it advisable or not to take up more than one at a time, or space them out?

zipwen1

id space them out having a lot of searches on you credit report can affect your score as it will look like you are desperate for credit. id get one card first and do my food shopping on it if you have Internet banking transfer the exact amount you spent straight over so there is no risk of you not paying on time or not paying it all off. then after a month get another and do the same on that and forget about spending on the first so you don't build up any debt.