recently discharged - "credit score" advice

savagevixen

AlanD wrote: »

Um... I don't think it works like that. Paying off in full each month does not make you attractive to them and your credit rating tends to plateau. In order to use a credit card to build up your rating you need to only be paying back the minimum thus be the sort of borrower they love i.e. the one that makes them loads and loads of money.

Not the sort of advice I want to give on here as it could end up putting you back on here again.

As long as you don't default and don't pay it back in full (pay back part of it, over the minimum) you are considered to be a good customer and your credit will be extended etc.

They like people who will make them money and they want to make more off them.

That is my understanding anyway.

Alan

Pre-Bankruptcy, I discussed this with Capital One. We did not help our credit rating, because we spent nearly the limit and set up a DD minimum payment, on both our cards.
I assumed these regular payments (and the huge interest they were earning) would be satisfactory to them. Yet in 3 years, neither of our cards had had the limit increased. But we were effectively doing what you reccommended AlanD. Minimum payment or £5. Capital One told me, that it was the amount your card was used.
They advised us that with regular activity, within 4 months upgrade would be considered. This did not matter whether you cleared the balance or not. You needed to make regular payments using the card for transactions, as well as paying monthly amounts off.
I think that the more you use the cards, the more you are in the habit of using them, the more likely you are to spend more money.

straightandnarrow_2

I was discharged in April 05. Last month got turned down for vanquis and this month for a current account with the bank I have a basic account with. This is despite making sure everything on my credit ref file is marked as satisifed or partially satisfied. Sadly, think unless you are very lucky it's just a matter of accepting the long road that it will be to get back in favour with these people.
I've decided to just live with a prepaid credit card and nothing else for the time being, it's a bummer though cos I need a car for work and can afford teh payments but can't get one! boo hoo!

AlanD_3

Ahhh that is very similar to what I've posted before about bank accounts in general (withdraw the lot and pay it back in repeatedly) so it makes sense. I had read in several places though that they aren't fans of pay back in full folks.

Ah well don't want a credit card to be honest, a debit will do just fine.

oscar_uk_2

maybe I'm being naive but my whole attitude now is that I never ever want to borrow money ever again... ever!!

I kind of think (and maybe I'm being a little idealistic) that I have a personality flaw that leads me to bad financial judgement but the lesson to be learnt is...

if I can't afford/can't be disciplined enough to save up for something that I really want then how will I ever be able to afford/be disciplined enough to pay off (plus interest) said item once I've already got it on credit.

I think the only thing that would concern me long term about my credit rating is buying a house (at some point in the distant future... it'll probably be a house on Mars by then). So in the meantime I would just focus on saving a deposit so enormous that banks will clammering to give me a mortgage regardless of having been made bankrupt once...

Gorrafewquidnow

I seem to remember a poat about this a while ago. It said something along the line s of - take money out the account and pay it back in. The general idea is tha you build up a history of transactions without actually spending any thing. The more transactions, the better your potential record.

So, take the wages out and pay them back.....several times. remember that you are dealing with a computer which does not recognise humans

uther_2

As I don't intend to ever buy a house,I never intend to get credit, which lets be honest is another word for debt, ever again.I am perfectly happy with my basic bank account,and my pre pay quidity maestro card.

Conor_3

I've just managed to get a mortgage after being discharged 3 years. I have no credit cards.

What I do have is a mobile phone on contract and I've not got a single missed payment for anything since bankruptcy nor do I have any debts other than the current months phone bill.

IMO all this stuff about having to get a CC to build up your credit rating so you can get a mortgage is a load of old tosh.

Tr@cker

A friend of a friend told me his friend just got a Nationwide debit card-he's only 4 months into a 52k bankruptcy.
How does that work ?

wherediditallgo

I don't think it's purely down to how you use a credit card, more down to how you use a range of credit services. Although I went BR owing about £60 to one catalogue company, I contacted another one I had a clear account with & asked if I'd still be OK to use them as I was now BR. They've said that I can still order from them, but they'd like me to pay 25% up front for any purchases & I can't order anything on 'buy now, pay later' until I'm discharged, at which point they'll look at it again. That seems fair enough to me, & suits me just fine. Also, I've still got my contract mobile phone, & while one bank closed my account, two others didn't (one of them said I could set up my direct debits with them instead). That means that at the end of the 6 years I'll be able to show myself able to maintain a contract mobile phone, purchase mail order goods with instalment payments & pay my monthly bills, which seems a much better credit profile than just having a credit card, something that got me into trouble in the first place!

When I was first BR, I was very tempted to get one of the pre-paid credit cards. But I'm glad I didn't now - I've managed without a credit card for years, & I'd rather not take on another commitment just yet even though I'd pay it off in full each month. If I'm going to have one of those, I'd rather wait until at least the 4th year of my credit file being affected, as I think that's when it's most likely to matter/count, & by then one of my existing banks may well have changed their policy anyway.

user55

AlanD wrote: »

Um... I don't think it works like that. Paying off in full each month does not make you attractive to them and your credit rating tends to plateau. In order to use a credit card to build up your rating you need to only be paying back the minimum thus be the sort of borrower they love i.e. the one that makes them loads and loads of money.

Not the sort of advice I want to give on here as it could end up putting you back on here again.

As long as you don't default and don't pay it back in full (pay back part of it, over the minimum) you are considered to be a good customer and your credit will be extended etc.

They like people who will make them money and they want to make more off them.

That is my understanding anyway.

Alan

That explains a lot!