Does a credit-build credit card affect credit score?

DesperateSusan

I have bad credit history, but understand that having a credit card can help to rebuild a good score.

I heard that the use of pay day loans can affect your score negatively.

Is the same true of credit-build type credit cards like Aqua and Vanquis?

Thanks,

Sue

YorkshireBoy

Whilst the lender's name is not shown on your credit report (for others to see when they search you), the presence of a very low, say, £250 credit limit may give the game away somewhat!

That said, you'll still improve/maintain a credit history by using it.

Gurranes

YorkshireBoy wrote: »

That said, you'll still improve/maintain a credit history by using it.

And of course keeping up to date with payments.

At first some pay day lending did help some peoples credit files as there were loans being taken and settled paid in full, but I think the credit reference agencies have wised up to this.

guesswho2000

Gurranes wrote: »

...At first some pay day lending did help some peoples credit files as there were loans being taken and settled paid in full, but I think the credit reference agencies have wised up to this.

Indeed, in fact taking a PDL now harms your file, as a number of lenders won't accept you (for mortgages, anyway) if you've had one in the last year.