Credit card help, which one.

punk84

Just a quick one, My credit history is currently poor, I'm in debt ( not a huge amount compared to many on here!) but i currently have a decent job and have all but cleared it. I do have defaults against my experian account. but again these will be settled on completion of debts, not ideal i know, but i would rather cleared it off asap about £800 left. Anyway, my question is this, I have very little outgoings, and earn about 2k + a month. I want a credit card to help repair my credit, i know there are a few i can choose frop, vanquis etc. But what is the difference between Visa and Mastercard? Is there any particular card that people would recommend? At this point i'm not worried about receiving anything in return but improvement on my score. Any help would ne appreciated.

[Deleted User]

Don't worry about the diffference between Masgtercard and Visa. They're much of a muchness and accepted in the same places.

Try Vanquis, aqua, Cap One, Bcard Initial. The aqua range includes a cashback card (reward) which may appeal.

punk84

I'm scared to apply. i have 4 defaults, on my account ( experian ) I don't want to apply just to get rejected, and then get into that cycle of not being able to get credit becuase I have been rejected before, I don't intend on applying more than once etc. What is the likely hood of me getting one? Should I just go ahead an apply?

[Deleted User]

You may as well try one. A single application won't harm too much.

Vanquis is probably the easiest to get, but highest rates and dodgy customers service. But that doesn't need to matter if you're just using it for credit building. Set up a DD to pay in full every month.

If they reject you, give it another 6 months or so.

punk84

Well, I just got instantly rejected, which is a real kick in the teeth.

punk84

This is so soul destroying, i have a very good job, well paid, savings. It does seem like a catch 22. I can't really improve my credit rating til i get credit, and i can't get credit until my rating improves.

jo-bo

Who did you apply to?

Tixy

How old (or new) are your defaults?

As they get older, and as you pay them off you should find you will be able to get a subprime card. So that by the time they drop off your file you'll perhaps have a year or so of good credit history.

With 4 defaults on file the main healer is going to be time.

DomRavioli

They will be on there for 6 years. Its not a "catch 22" situation - you were offered credit, you took credit, you didn't pay it back and broke your contract.

If you were instantly rejected, perhaps satisfy the outstanding debts and have the defaults put as satisfied in full, then wait a couple of months, THEN apply to rebuild your credit.

punk84

Im a little confused, those four are still open, as in i owe them all money ( about 200 each) if they are not chasing me up, and paying them off will still result in me getting bad credit, what is the incentive for me paying them off? Sorry if i am being a bit dense, I have never been very good with money, evidently.

Tixy

Settled defaults will make you more likely to be accepted for a subprime card than having 4 outstanding defaults. With all 4 outstanding to a potential lender this looks like you are still high risk.

But - incentive to pay them off - your creditors won't be able to take you to court and obtain CCJs against you.