Credit score help

I_need_some_love

After reading the article about how to get a higher credit score I would like to lay down a few query's.

I'm currently going through a DMP with CCCS it's due to end in 12 months time.

I have a credit card (Capital one) already, it so happens to be under the DMP.

Shall I wait till my DMP finishes then reactivate my credit card? This time using it wisely ie paying off the full amount via direct debit instead of the minimum payment.

Would it be worth it .. ? or should I cancel my credit card services once my dmp finishes and apply with a different supplier?

Rupert_Bear

I have a credit card (Capital one) already, it so happens to be under the DMP.

Shall I wait till my DMP finishes then reactivate my credit card. This time using it wisely ie paying off the full amount via direct debit instead of the minimum payment.


They may take the view once bitten twice shy.

YorkshireBoy

I'm not familiar with DMPs, but presumably they involve only a 'partial settlement' of the original debt?

If that's the case I can't imagine they'll risk letting you rack it up again. I'd expect them to close the card, and (internally) blacklist you from future applications for some time?

I_need_some_love

Fair enough I think I'll look into the Barclays initial credit card then when the times right.

Would you recommend that?

danedin

Give yourself some time without a credit card. I'm not saying don't ever apply for one again but I think you need to think hard before taking one out immediately. If you intend to pay it off immediately anyway then what's the hurry to get one?

Snowedunder

You can always use a pre-paid card which does not allow credit, but is handy for online payments etc.

I_need_some_love

Snowedunder wrote: »

You can always use a pre-paid card which does not allow credit, but is handy for online payments etc.

Cheers, been looking into pre-paid cards for a while now.

If I get a pre-paid card now will it help improve my low credit score? ... Baring in mind I'm under a dmp until next year.

Or will having a Pre-paid Cash builder card have no baring to my credit score whilst on dmp and/or 6 years after my default to make any effect on my credit score?

jason1231972

I_need_some_love wrote: »

Cheers, been looking into pre-paid cards for a while now.

If I get a pre-paid card now will it help improve my low credit score? ... Baring in mind I'm under a dmp until next year.

Or will having a Pre-paid Cash builder card have no baring to my credit score whilst on dmp and/or 6 years after my default to make any effect on my credit score?

I don't know if pre-paid cards do actually affect your credit history (be aware that there's no such thing as a credit 'score', not in any meaningful sense). They often say they build credit histories, but I don't really see how it's possible. Someone else may have a better idea about this.

But, that's not really the point. With you being on a DMP, you will have a 6yr wait before everything is 'ok', and that's only if you don't slip up again. Even if you're accepted for other cards and such, the 'good' effect of managing them correctly does not balance out the 'bad' effect of you having been on a DMP in the first place. In short, the damange caused by the DMP isn't swept under the carpet, just because you happen to manage another card(s) better in the near future.

Maestro.

jason1231972 wrote: »

I don't know if pre-paid cards do actually affect your credit history (be aware that there's no such thing as a credit 'score', not in any meaningful sense). They often say they build credit histories, but I don't really see how it's possible. Someone else may have a better idea about this.

I believe some prepaid cards report to your credit record as a satisfied loan after, say, a year.

Other than that I don't think prepaid cards serve any other purpose, except to provide an electronic means of payment for people who can't/won't get a current account with Visa/MC/Maestro debit card.

steve1980

Your score is just three random numbers made up by CRA's. You need to work on your HISTORY, not score.