recently discharged - "credit score" advice

allofadither

wherediditallgo wrote: »

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.

As I understand it WDIAG, most of the pre-paid credit cards have nothing to do with your credit file, no credit checks and no record of it on your file. You just pre-load it with dosh before you spend, and you can't spend what you haven't got, so it's not really credit at all. I have one of these cards for convenience as I don't like carrying cash.

I don't think I'll ever trust myself with a 'proper' credit card again.

NekoZombie

My understanding too, dither.

berniegal

I was wondering what the prepaid credit card was, sounds ideal for me .. thanks

straightandnarrow wrote: »

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!

wherediditallgo

allofadither wrote: »

As I understand it WDIAG, most of the pre-paid credit cards have nothing to do with your credit file, no credit checks and no record of it on your file. You just pre-load it with dosh before you spend, and you can't spend what you haven't got, so it's not really credit at all. I have one of these cards for convenience as I don't like carrying cash.

I don't think I'll ever trust myself with a 'proper' credit card again.

Sorry, I knew what I was trying to say, but it all got tangled up in the journey between brain & fingers. I meant to say I was going to resist the temptation to have a prepaid credit card as I'd rather do without it completely if possible, & not even go for an ordinary credit card until the 4th year post-BR at the earliest. Probably still as clear as mud - that's what strong painkillers does for you.

Conor_3

Tr@cker wrote: »

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 ?

Its a debit card. There's no credit on it. He can only spend what he has.

Most basic bank accounts now give you a VISA Electron/Solo debit card.

gpkwells

questionasker wrote: »

Hi all. I regularly view these boards and have seen some great advice on various topics - I hope you can help me!

I've recently been discharged from bankruptcy (couple of weeks ago) I'm now trying to work out how best to improve my credit so that in the future when I look to purchase a home etc I will get the best rates possible.

I've applied for all 3 credit reports so that I can correct any mistakes and think the best way to move forward would be to get a credit card/loan and only use so that I can make payments on time therefore improving credit rating and so on!!!

Has any1 been in this position recently - do you have any advice on best cards/loans available for discharged bankrupts or other ways to improve my "score".



Many thanks in advance

I was discharged two years ago, i move into my first home with my new wife next week. I have got a very competitive 5 year fix deal. When first discharged do one thing for six months - look after your current account. Set up D/Debits and Standing Orders and NEVER miss one. Then after six months apply for a high risk credit card try Cap One or Vanquis. Both are very high APR 30+% but the idea is to do your food shopping on it only and pay entire balence EVERY month. After a year get a full current account from your bank - Debit card etc and keep running that account like a saint. Some mortgage lenders will look at you a year after discharge but it won't be very competitive. Two years after and lenders will offer quite competitve deals. Try going through at least 2 Financial Advisors and comparing whats offered.

Hope that helps :beer:

Hit the thanks - I am NEW!

colshy68

i agree with the last post..
and remember one thing about the financial adviser bit relating to a mortgage...there are a ton of mortgage companies dealing with the "subprime" market and they all offer varying amounts of commision to introducers..not all advisers will offer the product thats best for you/some may be tempted to offer a product thats best for them..best advice i can can give is try and get a copy of moneyfacts and research yourself, and go directly to the mortgage provider yourself remembering they dont have to pay commision and you may get an even better deal!!
btw before my trustdeed was granted..i worked as a mortgage adviser!