Bad Credit History ADVICE NEEDED

KeyserSoze10

Over the last 5 years i've paid off an £8000 debt through a collection agency which was owed to Abbey National, and i'm happy to say i finished it this month so technically i'm now debt free.
Through this process i have been using my mums bank account for my wages to be paid into, and to pay off all the debts as my account with Abbey was closed down. Some questions now ......

1. A few friends of mine ( including those that work in banks ) have advised me to get a credit card and just make small purchases on it and pay the balance off in full every month and that is the quickest way to rebuild a shabby credit score. But, what if i apply for one and get knocked back, will that only make matters worse ?

2. I'm guessing i'll need my own separate bank account before i even think of applying ?

3. How long would it take before i can get my name on our mortgage at my house ( currently in just the Mrs name )

4. What else can i possibly do to rebuild my bad score, and what can i possibly do if i can't ever get a credit card to help me get started ?

chanz4

1. yes good advice, but even a bank with an overdraft unused with do the same or even catalogue.
2. Its a very good idea to have your own bank.
3. how longs a piece of string, you have to walk before you can run.
4. Get a very catalogue

[Deleted User]

Get a basic bank account and a Vanquis card. They're available to just about anyone (I don't think you even need to be breathing) and then go from there.

KeyserSoze10

Vanquis have sent me an application form for a credit card, i have it in my hand now, that's why i came here first asking for advice.

If they've sent me a form, surely that must mean they'd accept me right ?
Or they wouldn't of bothered in the first place no ?

[Deleted User]

It means from the Experian data they've bought, you look like a good prospect. But it's not a guarantee.

izools

You'll stand a better chance of approval for a Vanquis card if you have a bank account and can quote them the account number and sort code (if there's room for it on the application?)

That's your priority. These bank accounts are easy to get if you have a patchy credit history:

Barclays Cash Card Account
Co-Operative Cashminder
Lloyds TSB Cash Account
Natwest Basic Account

/etc

When you take out the Vanquis card you should ask them to set up a direct debit for the full amount against your bank account - this way, anything you spend on the Vanquis card will automatically be taken from your bank account to pay it off, the following month.

You only need to put one or two small purchases on the Vanquis card each month for it to help build your credit history.

After a year of having the bank account and credit card, assuming they're run correctly and you don't incur any charges, you'll find your creditworthiness much improved.

Good luck! :beer:

matttye

Mobile phone contracts are fairly easy to get too if you get knocked back for a credit card. Don't think you'll have any trouble getting a Vanquis or Capital One card though, just make sure you apply for one of the bad credit/credit rebuilding ones.

Out of the bad credit lenders Aqua tends to be the most picky from what I've read (and experienced)!

KeyserSoze10

Listen guys thanks for all your suggestions, the Mrs is with Barclays and has an uber gold mega account or something like that. I'll go for the cashcard account there then.
Then i'll apply for the Vanquis Card ( the bad credit option )
My mobile contract is up in august ( in her name currently ) so i'll sort myself out one of them too.

Now the debts are gone, they're gonna stay gone !

Thanks again.

Trajal

If it is possible I would suggest a simonly 'contract' with orange. I built six months of history with them before applying for a blackberry (which they gave me) and it helped me to get a few credit cards and catalogues etc with which to rebuild my credit rating.

Stuff I used was:

Orange sim-only
Littlewoods catalogue
Orange mobile
Very catalogue
Vanquis credit card (Aquis card)
Capital One credit card
Aqua credit card (Halifax)

A few years treating those all with respect and waiting for defaults to drop off and I have access to mainstream credit.