Credit Cards for hardly any credit rating

EmmaLouise1991

I am 21 in a couple weeks and am looking to build on or rebuild rather my credit file.
Stupidly at 18 got myself my first overdraft and went overdrawn by a fair bit and ignored them and the letters.
3 years on and i now am feeling the effects from my stupid behaviour.

Does anyone have any tips on rebulding my credit score?
And a credit card that would accept me?

Thanks

Em

only_mee

Try vanquis if they won't except you, no-one will.

EmmaLouise1991

Thank you very much, how would you reccomend i re build it?

Just by paying off my credit card if i get it? I also have 2 direct debits that have never been not paid.

only_mee

Yeah spend what you can afford, then pay it of come statement time.

EmmaLouise1991

Ok thank you very much for your advice

Maestro.

A phone contract will help as will a (sparingly used) bank overdraft, if you can get one.

Anthorn

Yes, Vanquis. If for example you're in debt by a million pounds and tried to escape it by moving to Outer Mongolia you will probably still get one. The initial credit limit might be very low but you'll have the chance to increase it every 4 months if you keep the credit card account in good order.

To rebuild your credit rating just use the card, stay within the credit limit and make the payments on time. It makes no difference to credit building if you pay the full statement balance or the minimum payment. But it makes sense to only spend what you can afford to pay back and clear the full statement balance every month to avoid the very high interest.

EmmaLouise1991

I have a mobile phone contract that has never missed a payment - via direct debit.

Okay thank yor for your advice!
Will try and get hold of one of these Vanquis cards

erimus1

EmmaLouise1991 wrote: »

I have a mobile phone contract that has never missed a payment - via direct debit.

Okay thank yor for your advice!
Will try and get hold of one of these Vanquis cards

Before you go and get the Vanquis, look at your options for poor credit credit Cards. Capital One Classic, Vanquis, Granite (also Vanquis bank) and Aqua.

Whilst Vanquis are renowned for being one of the easiest to get, they give tiny limits, as low as £100. This can be dangerous if you're going to use the card regularly as you could lip up and go over very easily. Some people think that many of these card lenders deliberately keep these limits low in a form or credit trap.

Aqua seem to give slightly higher and certainly more usable initial limits in my opinion. Check them all out first but only apply for one - you don't want too many searches on your file. Seen a couple of posts on here recently that we're wanting to do the same thing as you in rebuilding credit.

I would put a notice of correction on your file to explain the bad credit and assert that you hav moved and are now responsibly paying everything on time.

One poster on here applied for one CC. Three months later, he applied for another, and thn three months later, he applied for a third. This split the applications up over a periodb which looks better for prospective lenders. But remember to pay on time, every time. If you are not very good at paying then set up a DD to at least pay the minimum.

I do know that Aqua and Capital One accept faster payments now and payments can be applied to ou account in minutes, which is much better thn the old system of having to wait up to three days.
Good luck.

CLAPTON

what do you credit files actual say?


and don't put a notice of correction on your files as that will almost certainly need you will be rejected for every credit application

erimus1

CLAPTON wrote: »

what do you credit files actual say?


and don't put a notice of correction on your files as that will almost certainly need you will be rejected for every credit application

You are not certainly rejected for putting a notice of correction on your credit file. Lenders usually use an automated process for application purposes that will automatically reject for certain things, such as failing to reach a certain score (their own scoring system not the CRA's), you have a CCJ, you have a default. By putting a notice on you file, there is a legal obligation for the application to be manually underwritten rather than computer processed.