Vanquis card and the likes - what for?

killionaire

Hi all,

After receiving a pre-selection letter from Vanquis a couple of weeks ago I applied earlier this week and got accepted as a Vanquis customer yesterday.

The (only) reason for my interest in the Vanquis card is that they claim it is a great way to rebuild credit, which I very much want.

So, my questions are, firstly, is the fact that my application was successful a positive sign or does it not mean much at all, and secondly, is Vanquis truly a "great way" to rebuild one's credit, and if so how best to use it?

Thanks in advance for your knowledgeable answers.

Tixy

A subprime card is a good way to build up a credit history for someone who cannot get mainstream credit and if they use it responsibly.

Absolutely vital that you pay at least the minimum payment on time every month and don't go over your credit limit at any time (if you miss either of those it will make your credit file look worse not better).

To build up a good credit history its generally advised to buy one or 2 items on it a month and pay them off in full the following month (after the statement has been generated). Preferably don't regularly go above about 50% of the limit.

Vanquis is the easiest card to get, so it doesn't mean a great deal - but then again there are people who can't get even that card.

killionaire

Thanks a lot, Tixy.

I am actually still repaying a debt to HSBC through their Metropolitan Collection Services, hence I thought being accepted might mean things weren't that bad after all.

I was thinking of using the card to make small purchases I would otherwise make with my debit card, such as food shopping, and repay the full amount each month. Will that work the same as for the one or two items you're talking about?

If I behave with my Vanquis card, which I definitely will, does the fact that my debt with HSBC is still likely to be alive for a while mean my credit rate won't get better anyway until that debt is paid off?

What if I get another similar card in about a year and use it the same way I do Vanquis? Will this speed up my recovery?

jon142

It might be worth signing up for a free credit expert trial or £2 statutory credit report to find out what HSBC are actually recording on your credit file, if your repaying the debt back to them i would expect to see AP markers.

Vanquis are generally good just make sure you behave yourself.

Manys people common mistake is to take out lots of cards thinking it will repair the damage ( 3 cards - 3 x faster ) unfortunately it doesn't work like that. just slowly rebuild your credit and over time things will improve.

Maybe after you've been with vanquis a year to two try from a Capitalone Progress Card. were the interest falls to 17.9% over 3 years.

killionaire wrote: »

Thanks a lot, Tixy.

I am actually still repaying a debt to HSBC through their Metropolitan Collection Services, hence I thought being accepted might mean things weren't that bad after all.

I was thinking of using the card to make small purchases I would otherwise make with my debit card, such as food shopping, and repay the full amount each month. Will that work the same as for the one or two items you're talking about?

If I behave with my Vanquis card, which I definitely will, does the fact that my debt with HSBC is still likely to be alive for a while mean my credit rate won't get better anyway until that debt is paid off?

What if I get another similar card in about a year and use it the same way I do Vanquis? Will this speed up my recovery?