Number of Credit Cards

willLeeds

Looking for some advice...

Ive got poor credit from a couple of bad decisions when i was younger.

Ive now paid off all default accounts and have a Capital One Credit card to help improve my credit file now 7 months old, paid in full each month.

Im not currently looking for credit, but wanted to know if having a second card like an Aqua or Vanquis would help further or be looked at as a negative?

Consumerist

willLeeds wrote: »

. . . wanted to know if having a second card like an Aqua or Vanquis would help further or be looked at as a negative?

There have been reports that some banks are regarding Vanquis and other credit-repair cards in a negative light. I don't know how true these reports may be but it might be better to avoid using them if it is not necessary to.

You have already started to repair your credit record by paying on time every time with the card you already have. My advice would be to concentrate on keeping that up and forget other credit-repair cards.

grumbler

Get a sim-only mobile contract to have extra positive history in your credit file(s).

[Deleted User]

It's always useful to have at least one spare card, in the event of you losing the other, it being declined, etc.

Other lenders cannot see what type of card you have, although the low limits on the likes of aqua and Vanquis can give them a clue if they look hard enough.

jamesd

Yes, a second card is likely to be useful.

After that consider a small three year personal loan. Repay all but £50 or so almost immediately so you don't pay much interest. For the next three years you'll get a string of on time payment records if there are no glitches in the direct debit.

A personal loan because it's good to have a mixture of credit types, so a personal loan helps you more than a credit card once you have a couple of those.

willLeeds

Sorry forgot to mention, i have a small loan, 24 months, now with 6 months to do, paid on time in full, and a 4 year old Mortgage which has never defaulted.

rartherinv

Consumerist wrote: »

There have been reports that some banks are regarding Vanquis and other credit-repair cards in a negative light. I don't know how true these reports may be but it might be better to avoid using them if it is not necessary to.

You have already started to repair your credit record by paying on time every time with the card you already have. My advice would be to concentrate on keeping that up and forget other credit-repair cards.

Unlike when we look at our own report, banks searching your file can only see type of account, they can't see the provider. They will just see CREDIT CARD ACCOUNT 1 - £ balance vs £ limit, not VANQUIS CARD - £ balance vs £ limit.

Of course they can draw their own conclusions from a credit card account with a low limit, but they cannot say "poowee this young chap has a sub-prime card, let's not lend to him". The main problem with having a subprime card is that your credit is already subprime and will take years before prime lenders will look you in the face again.

jamesd

The mortgage and personal loan reduce the level of gain from having a second card but it'll probably still help.

chanz4

I disagree about the limit idea, tesco start with £500 on some peeps