Keep getting 'pre-approved' offers for credit cards & we went bankrupt 18 months ago!

Lou67

I am new here, so hi :j And apologies for this rather long first post...

My husband and I went bankrupt in November 2010; long story, but it was our only option, and all our debts were written off of course, but we were left with a bad credit record, (after 30 years of good credit!,) and we couldn't take out loans or finance or credit cards etc (not that we wanted to!) Also, we couldn't even get a contract phone or a Christmas catalogue and were stuck with the energy suppliers we had etc. Not a problem, as this was the risk we took.

Well this past few days - over a year and a half later; we have BOTH had letters through the door offering us 'pre-approved' credit cards, and all we have to do is sign and send for it. (One is capital one and another is Vanquis - and we have never heard of them!) I think this is dreadful actually, as we live in a private let house on 6 month contracts, (because we lost our house in the bankruptcy.)

So if we had left in May when our last six monthly one ended, ANYone could've sent for it under our name! I am quite worried, because what if we move, and these 'pre-approved' offers keep coming? They already have our names on it! Also, WEIRDLY, the one offer, ALREADY had our joint yearly income. How on earth did they know this? I am a bit freaked out and a bit worried and scared, and quite annoyed at all this actually! It's like, we got into a dreadful load of debt; (a lot of it through no fault of our own; like I said, long story...) and people are trying to get us in the poop again! There is no actual way in HELL that we will take credit out again!

But another thing is, how the heck and WHY the heck are we being offered credit when we are 'bankrupts?' The interest rate is almost 40% too!

Has anyone else had this happen? And what can we do about this? Like I said, what if we move house and these things continue to come in our name and HOW did they know our income?!

Thank you.

Dr_Cuckoo3

I am not aware that the Vanquis mailings state "pre - approved" can you advise us of the actual wording ? :think:

Anthorn

They're just advertising mail-shots sent to people who are on a mailing list who may be interested in financial products. You're preselected or pre-approved to apply and not preselected or pre-approved to get one!

izools

Lou67 wrote: »

But another thing is, how the heck and WHY the heck are we being offered credit when we are 'bankrupts?'

No you aren't. You were bankrupts.

Rebuilding your credit histories with sub prime cards like the Vanquis and / or Capital One Classic would be an absolute asset to you ensuring you're taken more seriously in future credit applications as you'd actually have some credit history post bankruptcy.

You'd not pay a penny interest if you paid the credit card bills in full each month (so long as you don't use the cards for cash just purchases).

I was bankrupt a few years ago but now I have a full prime bank account, two prime credit cards with sub-20% APRs and over-£3,000 limits, and have been able to obtain a mortgage at under 3% APR.

This is because I rebuilt flawless credit history from the very day I was discharged starting off with the above mentioned sub prime cards

Lou67

Thanks :0)

So does that mean then, that if these things still keep coming, and we have left, that someone else cannot get a credit card under our name?

PLUS, how come we are being 'pre-approved' (This is what it says on the form,) when we went bankrupt? Our credit record is shot, so why would they lend money to people who went bankrupt?

Lou67

Hi, izools.

So these are actually bona fide then? Because the interest rate is phenomenal at 40%!

I must admit that we are very reluctant to take ANY credit. So the only way to 'repair' your credit record is to take more credit?! I would rather not Especially with extortionate rates like they have. I feel that they are trying to take advantage. Maybe I am wrong.

izools

Yes the rates are high of course as lending to discharged bankrupts is a very high risk but interest isn't charged if you only use the cards for purchases not cash and pay the bills in full each month.

They won't be pre-approved, you'll have been pre-selected to apply as you're now discharged and these cards are tailored to applicants in your position.

Any time you move you should set up a mail redirect and immediately update your electoral role details as if you aren't registered to vote at a given address no one can take out credit in your name at that address without providing ID and besides once your electoral role updates at your new address companies will use that address for their mail shots.

Good luck with your future endeavors moving forwards.

Anthorn

Lou67 wrote: »

Thanks :0)

So does that mean then, that if these things still keep coming, and we have left, that someone else cannot get a credit card under our name?

PLUS, how come we are being 'pre-approved' (This is what it says on the form,) when we went bankrupt? Our credit record is shot, so why would they lend money to people who went bankrupt?

I don't know about Capital One but I do know because I'm looking at it right now that the Vanquis mailshot says, "... we've pre-selected you. Apply today."

When your credit reaches rock bottom, the only way is up. Companies like Capital One and Vanquis provide a service which over the medium to long term helps to achieve that by showing them and anyone else who views your credit report that you are now handling credit more responsibly.

Many people on this forum, including myself, have been there, done that, got the badge and the tee shirt and are now seeing our credit on the upward track with the help of such services.

Lou67

Hi again Anthorn and izools. So you actually think it is a good idea to maybe apply for one of these credit cards then? PURELY to try to repair our credit records? Must say, it is a bit of a pain, not being able to even have a cheque book or internet banking or even a Christmas catalogue!

I am not familiar with them at all either. Are they specifically designed for ex bankrupts? to repair the credit rating. Like i said, ours was impeccable for 30 years and it's such a shame it's shot now. It would be nice to have it fixed, even if it just means we could have a cheque book or a contract phone, and maybe change energy providers without having to have a meter. We don't want to get in debt again.

We were worried that they may add 40% onto what we bought on it too... so as long as we pay in full before the due date, they are NO extra charges?

Anthorn

Lou67, Only apply for one or the other and not both because the search(es) will be shown on your credit report. More than one search will almost certainly result in a rejection.

In your current circumstances I would say apply for the Vanquis because that's the easiest to get and if you get a rejection from them you are unlikely to be accepted elsewhere. If you fully pay the statement balance every month there is no interest to pay. The only charge you'll pay is 49p per month for paper statements but you can turn these off in the online management eVanquis and save even that.

Note that defaults drop off your credit report six years from the date of the default and CCJs drop off the CCJ register in the same time period. If you start to rebuild credit now, when they drop off your credit report will show good content and your credit will be well on the way to being repaired.

The next step in repairing credit would be to get a contract mobile phone as well as making sure all due payments in everything are paid on time.

mazman83

Hi lou67

As you bankruptcy remains on your credit file for 6 years it will be difficult to obtain credit with low interst rates.

That doesn't mean you can't rebuild your credit worthiness in the meantime, that is what capital one and vanquis let you do.

Have you looked at your credit files since you have been discharged?

You should make sure that they are clean and all have correct default/settled dates. This is so that all credit accounts that went into your bankruptcy fall of at the 6 year mark.

Credit file cleanupt post discharge

If you get a credit card just spend a bit on it, like food or fuel and the pay it off in full at the end of the month so you don't get stung by the high interest. You will also get nice green ticks on your credit files.