Getting a credit card after paying off debts

Candy0107

Hi all,

I normally post of the dfw board as my previous aim in life was paying off approx £23k of debt.....I have approx £600 left which should be gone in about 3 months :j - this has taken about 7 years (so hopefully the defaults have dropped off my credit report)

Anyhow, as I would like to improve my credit rating etc I was hoping to apply for a credit card.

I have 2 questions:
1 - is it good that I am being invited to apply for cc's? I've only had 2 letters but still
2 - should I apply to my bank in the first instance for a normal cc.....their lowest limit is £300 which I would be happy with, or should I go for a credit builder card.

What do you think?

Before anyone states the obvious, I am planning on being sensible with this (previous debt was built up through stupidity and depression due to losing a parent)

Thanks
Candy x

[Deleted User]

Candy,

Depending on the circumstances of paying off your old debt, I don't see why you should apply for a sub-prime card.

You mentioned having repaid £23K. Did you always meet you repayments? Do you have any defaults that are less than 6 years old?

If not then (depending on income) I don't see why you shouldn't apply for a better card that will give you some benefit. Simply paying off all of your old debt will have helped you build a good credit history.

What are your current circumstances? Knowing that will help us to give better recommendations.

Candy0107

Lazyloki wrote: »

Candy,

Depending on the circumstances of paying off your old debt, I don't see why you should apply for a sub-prime card.

You mentioned having repaid £23K. Did you always meet you repayments? Do you have any defaults that are less than 6 years old?

If not then (depending on income) I don't see why you shouldn't apply for a better card that will give you some benefit. Simply paying off all of your old debt will have helped you build a good credit history.

What are your current circumstances? Knowing that will help us to give better recommendations.

Hi, hopefully I will answer all your questions....

Paid off the debt using cccs (stepchange). I missed one payment when I changed jobs, but that was a while ago

I have checked noodle and there are no defaults there (as they've dropped off) but I need to check equifax and experian.

I currently work full time, earning approx £21k, but due to the distance I am hoping to get a job in my hometown. I have been with my current employer for 3 years.

Thanks
Candy x

[Deleted User]

Ok, so you've paid off a whole load of debt and don't have any default on you file. I don't see why you should apply for a credit-builder card. Apply for a card that's going to give you something back, whether that be cash back, airmiles or whatever else.

Candy0107

Thanks for the reply.

Candy x

geekonthepc

I have to agree, you should be on the road to a better credit history now and should look into something more rewarding.

Something like the Barclaycard Freedom Rewards card might be appropriate for you. You get points which transfer to rewards for spending on it and at 18.9% it's not too bad.

http://www.barclaycard.co.uk/personal/credit-cards/freedom-rewards

matttye

It's worth noting that if you haven't had any credit in the last six years other than the defaulted accounts that have now dropped off, you will appear to lenders as having a very limited credit history. I think a phone contract or sub-prime card may be in order to build a history, but maybe only if you're rejected for a decent card.

Candy0107

Hi, thanks for the replies.

I've got a mobile contract. I will apply for a credit card with my bank and if its a no, I will try barclays.

Thanks
Candy