Vanquis.

Cantfindafreeuserid

Ok I have had problems in the past and have 2 CCJ's against me. Recently (9 months ago) I thought I would try my luck at getting credit to rebuild my rating. I started by opening a 'The Briliant Gift Shop' account and have payed minimum amount every month and my credit limit has gone from £125 to £1300! I have stopped spending in the account and will not spend anything until the balance is payed as I do not want to overstretch myself.
I then opened a 'Simply Be' account and am doing the same with this one having spent up to a certain amount and paying the minimum or just over every month. No more spending until it is payed.
I have for the last 6 months or more been getting application invites for Vanquis so thought I would try my luck and if I was declined ring them to be removed from their mailing list. I read on here somewhere that you get a call to set up the account. To my complete surprise I got this call this morning! I am planning on using the card for 1 weeks fuel every month and paying it off in full.
Now I have an awful crackle on my telephone line so asked for everything to be sent to me in writing and declined a cash advance as I know I can't afford it with everything else. I am assuming my credit limit will be more than the cash advance offered or would they max me out with one? I also declined an identity theft protection thing for £6.99 'which will conveniently be added to the balance of the card every month!' I was asked why I declined and said I wanted to be sure I could run the account without any problems first. He replied 'I understand that but it coves all other cards etc etc' I assume I was right to decline? I did however say yes to a charge of £1 something in every £100 spent for cover can't remember now what he said about it but he definately said I could remove it if I wanted and would not be charged if the balance was paid off before the next statement.
My question is does this mean I have to pay the balance before the statement is produced to avoid paying this? He did say if there is a zero balance then there is no charge. I think I may remove it before using the card. What do you all think?
Thanks in advance x

Simon7685

Not entirely sure but from you have described it sounds like you have signed up for their "Repayment Option" otherwise known as PPI, rebranded but essentially the same thing. If you are going to pay in full every month, then youd don't need it.

From what you have said, if you pay your balance in full before the statement is produced, then it will not help your credit rating. As when they report to the CRA it will just look as though you are carrying a zero balance each month and will not show a payment history, therefore no improvement to your rating.

I believe that this is correct though no doubt someone will be along to confirm it for you.

Also you could do with making sure you are paying more than the minimum payments on your catalogues each month. Not only will you be paying a lot of interest over time but it does not look good for your credit rating if you get an account, max it out and then only repay the minimum each month.

Hope this helps.

Consumerist

From Vanquis Ts&Cs it looks to me as though there is an optional charge of £1.29 per £100 of your outstanding balance for what they call a "Repayment Option Plan" which you can "activate" if you get into financial difficulties. Looks like a form of PPI.

Cost of enrolment
9. If you are in full-time, part-time or temporary employment or are self-employed, the cost of the Plan will be charged at the rate of £1.29 per £100 (1.29% per month) of your monthly outstanding balance (‘Plan Charge’). This is known as the Full Plan.

According to that, the charge will be made if your statement balance is not zero. In my view, this means you will need to pay the balance before the statement is produced to avoid paying the charge.

Cantfindafreeuserid

Many thanks for the replies.
Ok so the first thing I need to do when everything comes through is call them and take it off.
I understand what your saying about the catalogues I have not maxed them out and am trying to pay more that the minimum but I am also trying to save for my son's school trip (another £250 needed!) His trip has to be payed soon so has to come first. My aim is to pay the balances then occasionally use them and pay in full.
Does anyone know if my credit limit will be more that the £200 cash advanced offered or would they offer me up to my limit in a cash advance? I know I should have asked but was so shocked to get accepted I didn't!
Also in credit rebuilding what would be my next step? I hope to pay off my overdraft soon as well as the catalogues and only use things occasionally and repay straight away? How long do I leave things before trying for something else or do I stop now?

Many thanks in advance x

Consumerist

Cantfindafreeuserid wrote: »

Does anyone know if my credit limit will be more that the £200 cash advanced offered or would they offer me up to my limit in a cash advance?

From their <credit-card page> :-

• You'll start with an easy to manage credit limit between £150 and £1,000.
• And further increases every 4 months, up to £3,000.

Also in credit rebuilding what would be my next step?

Best practice is to spend a little on the card each month and pay off in full to avoid huge interest charges.

Cantfindafreeuserid

I know the limit will be between those 2 figures but wondered if it would be the amount they offered as a cash advance or more? Would they max soeone out with a cash advance? Not that it is that important as I will not be spending anywhere near that per month anyway.

Should I try for more credit in a few months? A mobile phone contract maybe? Not that I really want one?

Consumerist

Cantfindafreeuserid wrote: »

Would they max soeone out with a cash advance? Not that it is that important as I will not be spending anywhere near that per month anyway.

Unfortunately, no one can tell you what credit limit Vanquis might give but I take your point - it is unlikely they would offer to give you a cash advance of more than about 90% of your limit.

Should I try for more credit in a few months? A mobile phone contract maybe? Not that I really want one?

Normally about six months is a reasonable time to wait but don't apply for credit you don't need.

Cantfindafreeuserid

I was hoping they wouldn't max anyone out. Has anyone here had a cash advance of £200 offered to them if so what was your limit if you don't mind me asking? This is just curiosity getting the better of me :-)

I don't want any credit if I am honest but I need it to gain a good reference bit of a catch 22 :-( I also need a 2nd job to be able to clear all of my old debts including the CCJ's. I just want to get debt free but when you don't earn enough to do everything it's hard. Tis is why I am only using the card for 1 weeks fuel every month and will have the money to clear it everymonth as it is something I buy anyway.

Consumerist

Cantfindafreeuserid wrote: »

Tis is why I am only using the card for 1 weeks fuel every month and will have the money to clear it everymonth as it is something I buy anyway.

That's all you need to do to repair your credit file. Just stick to that and wait about 6 months before applying for a better card deal.

Cantfindafreeuserid

Brilliant thank you very much. Still can't actally believe they accepted me but grateful they did as this mus mean somewhere somehow I have done some good for my file lol

redpete

Cantfindafreeuserid wrote: »

Should I try for more credit in a few months? A mobile phone contract maybe? Not that I really want one?

Seems daft to get credit for something you don't need when you are still paying off CCJs.

Just wait until the Vanquis cards arrives, then use it for spending you would be making anyway, don't go over the credit limit on it and pay it off every month (after the statement but before the payment due date).