The BEST Credit Card for Rating Building

RobHolyhead · 24 March 2013 at 1:51PM

Hi all,

I'm in a position where I'm saving for a deposit for a second house (renting out my initial house) but I have a poor ish credit rating and have been turned down for a Mortgage promise.

Basically I'm 6 months away from having this deposit so I'm after the Credit Card which will build my credit score as quick as possible.

My plan is to use it just for the weekly shopping and they pay it off as soon as my statements come though so Ill be looking at roughly £280 per month of usage.

As Ill be paying it off in full at the time of my statement I don't really care what the interest rate is.

Cheers

Rob

[Deleted User] · 24 March 2013 at 2:11PM

As far as I'm aware there is no such thing as a best credit card for building your credit history. If you're planning on using it for stuff and always paying the balance in full each month then it makes no difference if you have a vanquis/aqua or a flashy Amex.

Lenders look at your repayment history, not the card you have so I would just apply for an easier to get card such as vanquis or aqua (preferably aqua cash back card) rather than risk applying for something that you may not get approved for.

JakeGreen · 24 March 2013 at 3:02PM

I'd agree with the post above, when you apply for credit the lenders don't see the names of your current lenders. So they don't know if you're with Aqua or AMEX. Having said that, the new lender will want your bank details, so they will know which bank you have a current account with.

Cards for people with a poor credit history, or a short credit history will have low credit limits (up to £500) and will have high rates of interest.

If you want to 'impress' a future lender you want to show that you can use a credit facility (either loan or credit card) and not make any late payments on it.

For a credit card, you want to show them that you can use it, but not go over the limit. Also that you don't max it out and then make minimum payments, as this could indicate you are struggling for money.

In contrast, I would say apply to the high street bank first and then if you get declined, go to a sub prime lender. The previous search from the high street bank shouldn't affect your application to the sub prime lender as there must be a bigger problem with your credit history than simply too many searches in a short period of time.