Life after Bankruptcy - rebuilding my credit

Jesca

I was declared Bankrupt in July 2006 and discharged in July 2007 after my business failed and I was left with around £30,000 worth of personal debt.

Since 2006, I've successfully lived within my means and have been very careful not to damage my already damaged file. I successfully got a NatWest Current Account (with help from a very kind employer) in 2008 and have no debt of any kind. No mortgage, no credit cards, no overdraft. I have subscribed to Credit Expert (Experian) and have been cleaning up my credit report and have been reading advice and help on this website which has been hugely helpful.

Two and a half months before the Bankruptcy and Bankruptcy Discharge is due to be removed from my credit file (July 2012), I would like some advice on how to start getting my life back after 6 years of none existence?

Do you have any advice for Bankrupts in the latter stages of the 6 year recovery? What steps should I be taking to rebuild my credit file? Should I seek a specialist bankruptcy adviser and where are these angels!? I am newly living with someone who has a perfect credit history. How can I do the right thing by him and build my credit worthiness without adversely affecting him?

From what I have read, one way to start is to get a credit card. I applied for a Capital One credit card in August 2011 but was turned down. I am reluctant to start applying again as I know these refusals are recorded on my credit file therefore damaging it further. Should I wait until my Bankruptcy has been removed from my file or should I apply now?

Any advice or help would be gratefully received.

Yours faithfully,

Jesca

JustinCredibleGillespie

Try Vanquis

They may give you a CC providing all your defaults etc are marked as satisfied with the Credit Reference Agencies.

Alot of bankrupts have been accepted with Vanquis after cleaning up their files.

All the best.

JCG

xx

JustinCredibleGillespie

https://forums.moneysavingexpert.com/discussion/677875

IF

Hi Jesca, Its good your cleaning up your credit files first, then when they are cleaned follow some tips from TF.

Don't until they are cleaned up first :beer:

tigerfeet2006 wrote: »

As said get your credit files and check they are fine, if not do the clean up
https://forums.moneysavingexpert.com/discussion/677875

You should be able to get a debit card. The Co-op Cashminder and Barclays Cash Card accounts both come with them and they are accounts that BR can obtain so maybe try those.

The Other thing is if you have been trying willy nilly after the last few months to get accounts etc. then the searches are on your credit files and that will put creditors off and refuse you so give it a rest for a couple of months and then try again.

Apply for a Cash Plus Gold Pre Paid credit Card on the credit builder option. http://www.mycashplus.co.uk/cashplus-extras/creditbuilder/default.aspx You will probably be able to do this straight away.

Apply for a catalogue account. Very or Next seem to accept people. Buy a few things and pay off in full each month.

Once your file is cleaned up see if you can get a high interest CC like Capitol One or Vanquis. Use it for something like your petrol each month and then pay it off on pay day, that way you incur no interest and you get your green ticks.

Try and get a cheap mobile phone deal once your file is cleaned up to.

If you have a bank account an d bills on DD's you should also be getting those green ticks.

But remember spread it out and don't be applying for all and sundry.

Also don't forget if you have no credit then that puts off creditors as well. Catch 22.

Best wishes
If...x

Jesca

JustinCredibleGillespie wrote: »

Try Vanquis

They may give you a CC providing all your defaults etc are marked as satisfied with the Credit Reference Agencies.

Alot of bankrupts have been accepted with Vanquis after cleaning up their files.

All the best.

JCG

xx

Hi Justin

Thank you for your advice. I have found the application form for a Vanquis Credit Card however I am reluctant to fill it in whilst I still have the Bankruptcy sitting on my credit report. I dont want to get another failed application when I am so near to the Bankruptcu dropping off my report.

Do you think I should wait until 6th July or should I just go for it now?

Are you a financial adviser, could I send you my credit report?

Thanks

Jessica

Jesca

ifwisheswerehorses... wrote: »

Hi Jesca, Its good your cleaning up your credit files first, then when they are cleaned follow some tips from TF.

Don't until they are cleaned up first :beer:




Best wishes
If...x

Hi If,

Thank you for all your advice here, this is brilliant!

One more question though, should I wait until my Bankruptcy has dropped off my credit report in July. Once that has gone, my file is as clean as it could be under the circumstances. I am on the electoral roll, I have cleaned up any defaults and most have gone now anyway. I am not linked to anyone with adverse credit (not that it can be any worse than mine!) so I am pretty much all set for starting again. Unless you have any more advice?

My main stumbling block at the moment is whether to wait until July or to start applying now for a catalogue and vanquis card?

Many Thanks

Best Wishes

Jesca

sam-wileman

Hi Jesca,

I am no expert, but I am nearly 2 years after discharge and applied for a Vanquis card about a year ago online.

They didnt approve me straight away, but sent me a letter asking to call them and go through some details and about a week later my card came.

Hope this helps.

Jesca

Hi Sam

Thanks for your message, its great to hear from you. Its refreshing to learn about others experiences. I just wish I'd known about this site years ago.

I think I might try then. Did you have any other problems with your credit report at the time? Did you have a mortgage etc or any other things which helped your application at all? Just so I know.

Best Wishes

Jesca x

Jesca

sam-wileman wrote: »

Hi Jesca,

I am no expert, but I am nearly 2 years after discharge and applied for a Vanquis card about a year ago online.

They didnt approve me straight away, but sent me a letter asking to call them and go through some details and about a week later my card came.

Hope this helps.

Thanks again Sam. Which Card did you get out of interest? What is the credit amount available? Are you putting small amounts on it every month and paying it off? Has it helped your credit report at all?

I am considering going for the Cash Builder Plus account but you have to pay a monthly fee and I have been advised this is money down the drain. A "real" credit card would be better that a prepaid one.

eeek, what to do!!!

Thank you

Jesca x

Super8

Hi, I was discharged about 2 years ago now. Similar to yourself a business failure and stupidly using personal credit.

Since then I've managed to secure a decent permanent job and actually save money. I've havn't done any of the credit clean up yet. I guess I should get around to it!

Anyway I applied for the vanquis card online a couple of days ago. They called me today they ask for you're current account details and household income and I got accepted. I think they should accept you so long as you are employed with a workable income and there is no suspicion of any fraud against you.

I'll be paying off the full balance every month and the plan is to use it to rebuild my credit history. Also there are certain things where a credit card is needed such as car rental etc.

sam-wileman

Hi Jesca,

I am not sure which card I have with Vanquis but I dont pay a fee for it. I started off with £150 credit and it was the first credit I had applied for since going BR. I use it for petrol, as my local Asda only has self serve pumps which dont take me electron card! and pay the balance off each month. I have a limited of £1500 but I will never use it all! It's just nice knowing that I am repairing the damage done in the past and hopefully put me on a better footing when I come to get back on the housing ladder.

Best of luck