Improving credit/Capital One

Invincible_2

Hi there,

My credit rating is poor due to a (since cleared) default in Feb 2007. Until that drops off next year, is there anything I can do to try and make my score better?

I currently have a Capital One card with approx £2k limit, currently not owing anything. I have always paid more than the minimum payment each month, and have never missed a payment.

I'd like peoples advice; do I keep the card and basically continue using it/paying it off.. or would it help if I got away from Capital One and tried a different company?

The only other credit I have access to is a Next account (which is completely paid off at the mo) and a small overdraft with Santander.

CLAPTON

use the CC every month for things you anyway buy and pay in full; this will show on your credit report

PDF

Future credit checks by other companies will show the Capital One account and how you have managed it but NOT the name of the lender! So no reason to get away from Capital One unless you want a better % rate.

Stereo

PDF wrote: »

Future credit checks by other companies will show the Capital One account and how you have managed it but NOT the name of the lender! So no reason to get away from Capital One unless you want a better % rate.

Is this correct? Credit files show the name of your lenders so why wouldn't credit checks?

With regards to the OP, you should keep and use your Capital One card. As mentioned by Clapton, this will help to build your credit file. I wouldn't think about applying for any other credit until the default drops off your file in Feb 2013. Providing you've managed your Capital One account well, you should have no problem when applying for new credit.

Anthorn

In reply to the OP:

Use your credit card for everyday purchases for which you normally use your debit card and fully pay it off every statement period.

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BugsyBrowne

Stereo wrote: »

Is this correct? Credit files show the name of your lenders so why wouldn't credit checks?

With regards to the OP, you should keep and use your Capital One card. As mentioned by Clapton, this will help to build your credit file. I wouldn't think about applying for any other credit until the default drops off your file in Feb 2013. Providing you've managed your Capital One account well, you should have no problem when applying for new credit.

I have never 100% believed a a credit search wouldn't show the name of the applicants other accounts, because I remember being on the phone with flybe's underwriting team and the lady mentioned the name of my other credit card & bank being Barclays.

So it must just be the underwriting team that knows the name of the accounts & computer just seeing it as credit accounts or whatever it is.

Invincible_2

Thanks for all the advice, I'm just so nervous using credit as I don't know what I'm doing! But yes I will use and pay off monthly.

I have an O2 contract

Anthorn

Invincible wrote: »

Thanks for all the advice, I'm just so nervous using credit as I don't know what I'm doing! But yes I will use and pay off monthly.

I have an O2 contract

If your monthly spend on the credit card is the same as the monthly spend on your debit card used to be it's unlikely that you will get a statement balance you can't pay. The difference is that clearing the credit card statement balance every month goes on your credit records.