Bad Credit Mortgage - Considering Bad Credit Card

billybear1

Good afternoon,

I currently have a bad credit mortgage and have had one now for one year, in this time my extensive defaults have all got one year older, I have had no missed payments and no further defaults, my bank account (joint with my now wife) is kept in credit of around a few £k's and all of our bills are paid by DD.

Is it worth getting a credit building card also and putting my fuel on this card and paying off in full? Or should I just stick with the credit building mortgage and wait the 3 years till all the last of my defaults drop off?

Cheers.
BB

jamesd

Yes, it's worth getting a credit card. Not necessarily one intended for those with lower credit scores.

Why not first try one of the cards like Barclaycard that will use a quotation check to say whether they think they will accept you and for what card first?

If no joy there, how about trying Noddle, where they present cards with estimates of chances of being accepted based on what you tell them about income, age and such, along with what's in your credit record?

With your defaults apparently now three years ago they should by now be having a significantly less bad effect, though they will probably still block you from getting the best deals.

billybear1

Thank you for the response, I have experian and have tried looking on there for some cards and it says that the Vanquis and Aquis (I think) cards are best placed for me to try, however I would like something that over time will become my everyday card. I will try the Barclay one and see what that suggests.

jamesd

So far it looks as though it may be a bit soon to get a permanent card. Just a case of letting time and well serviced accounts showing on your credit record do their good work, though.

Thrugelmir

billybear1 wrote: »

Is it worth getting a credit building card also and putting my fuel on this card and paying off in full? Or should I just stick with the credit building mortgage and wait the 3 years till all the last of my defaults drop off?

Try living without the need for a credit card. Spend in cash. Save for things you wish to buy in the future. Always an inherent danger that the credit card is there to use. You are doing all the right things to improve your credit rating. So don't get sucked into believing that a credit card is going to improve matters any quicker.

jamesd

Except a credit card will improve things if used sensibly. And with a bad credit mortgage at the moment, not doing things that will improve the credit record is going to be expensive if it delays a change to a different mortgage.

neil_999

I've done this...and it works. I have 2 defaults against me and although it doesn't mean anything in real terms, for the purpose of measuring, my Experian score was 508. I applied for a capital one credit builder card, only a £200 limit. Put my monthly fuel on it, and paid it off every month.

As my credit got better my limit was increased, then I moved to a better card, twice actually and now have a total limit of £7000. I never use them now, and the important thing is to NOT get tempted in to using them. My Experian score raised to 841 in 18months

The only thing I would say is it still takes a long time. I believe lenders view a credit account less than 6months old less favourably anyway so in your case it may just be worth waiting.

So if you have other credit - loans, phones and anything else, they are doing the job of building your credit a lot better than taking a card out will.

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Another selling point of the idea. I did the same for my wife - her credit went from 512 to 944 in 8months and led to us being approved for a mortgage!

geoffky

Credit scores mean jack when it comes to mortgages....I wish people understood how much money is being wasted on these credit scores...
I have never seen mine,Because they do not matter..

Thrugelmir

jamesd wrote: »

Except a credit card will improve things if used sensibly.

Self control is the key. Those that abuse are in danger of reoffending again in the future. Called human nature. Something that risk profiling looks for.

neil_999

Thrugelmir wrote: »

Self control is the key. Those that abuse are in danger of reoffending again in the future. Called human nature. Something that risk profiling looks for.

Ah but...wouldn't you respect a recovered drug addict, sat in a room full of drugs, and resists temptation more than someone who has never had a problem

I'm not saying any lenders think like that by the way!:D

Thrugelmir

neil_999 wrote: »

Ah but...wouldn't you respect a recovered drug addict, sat in a room full of drugs, and resists temptation more than someone who has never had a problem

Respect doesn't get a rating on the risk scale.