Vanquis card?

McClane54

Hi Guys

Im reading alot of threads where people are saying to get a Vanquis card, to simply build up a nice path on your credit report, Ive got a low score from a defualt 4 years ago, and the odd late payment, But want to start building my credit report up as everythings now paid off etc and ive just added myself back onto the eletoral register after my mother took me off a year ago (silly)

Ive cancelled my Next and argos account, so it will only be my mobile phone and the Vanquis card (getting rid of my mobile contract when its up in November)

am I doing the right thing?

(Only helpful replies please)

[Deleted User]

Yeah, I don't see why not. Hopefully the default from 4 years ago won't affect you too much.. Why not go for the Aqua card though? It is also for people with less than ideal credit and gives you 3% cashback up to £100 per year. Also ditching the mobile contract might not be best as it would mean that the credit card is your only form of credit which might make it more difficult to get further deals in the future. Why not just keep your handset and switch to a cheap sim only contract?

Bear in mind that both aqua and vanquis have high interest rates so you'll want to pay off the balance in full each month. Just use it instead of your debit card for normal spending and set up a direct debit to repay in full.

McClane54

good call mate, just fed up of paying £35 a month, will just keep the phone and get a £7.50 contract with tesco or something

as for the cards, Ill wait for a few months (for my request to be put back onto the electoral register is done) , then maybe get either a vanquis or aqua, just buy a few things each month and set up a direct debit to pay them off when payday comes from my normal account

sounds good

McClane54

would applying for a aqua or vanquis card (who ever turns me down first) today or in 2 months harm my credit?

[Deleted User]

If you don't have any other recent searches then I shouldn't think so, a few searches in a six month period isn't a problem.

I would definately go for the Aqua over the Vanquis because of the cashback. No need to limit it to just a few items each month, just use it instead of your debit card (but not for cash withdrawals)!and pay off in full. Just make sure you don't spend more than you have in the bank. If you spend £300 each month for a year you'll qualify for the maximum cashback of £100 at the end of the year.

McClane54

what happens say 2 months i dont spend anything? is that ok? or do i have to use it all the time? not too worried about the cash back, just want something to help build up my credit report really

zerog

Why would you not spend anything? Don't you have to buy food?

McClane54

Id use my normal account where my wages come out like i have done for years, just use the aqua card now and again for luxury purchases

[Deleted User]

No nothing bad will happen, you don't HAVE to use it but the idea of building up a good credit history is that you demonstrate that you are able to consistently use and pay off the credit you have.

I would say that you should try to use it a little each month, even if it's only for a few pounds.

[Deleted User]

I know it might sound counter-intuitive but being 'good' and spending only the money in your current account won't actually help your credit rating. This is why I'd reccomend using the credit card for as much as possible, leaving your wages in your current account and then paying off the balance of the credit card each month (you can set up a direct debit to do this). Six to nine months of this may get you to the stage where you can then think about applying for a better card and working your way up the credit market.

throwoff

Your best bet is as a few other posters have said, use it a little each month and pay the balance in full.

Nice full balance payments each month for a year or so on a Vanquis or other sub-prime card and you will be able to move onto a high street lender without much trouble.