Credit Building Credit cards?

flexeh

Not sure if this is the best forum or the credit file one.


I have a default on my account which ive spoke on CAG loads regarding it, etc. its the only one on there and still outstanding debt on it

ive been browsing my experian lower my bills etc and its mentioned a credit building card and matched me to 7, so im assuming i would qualify for these.

the one its showed is

Aquis Visa Card
Balance Transfer Rate N/A (N/A) Purchase Rate 0%(N/A)
Representative APR 29.8%(variable) Total Amount of Credit
£3000 (Subject to Status) Total Credit Charges
No Annual fee

https://lowermybills.creditexpert.co.uk/CE-Compare-Credit-Cards/Details.aspx?p1=279588&c=8

are these things any good? i was thinking of making small payments like fuel for the car etc and paying it off within the month. Also the other thing i was contemplating is

paying my outstanding default which is currently £554 off with this card then paying like £50 per month on the card as then ive cleared the default and also making regular payments on the card.

can anyone advise if this is worth trying. as ive got everything else on my file good except my default and a recent catalogue application which ive been accepted (havent purchased anything on it tho)

Thanks

grumbler

flexeh wrote: »

...paying my outstanding default which is currently £554 off with this card...

Normally the only way to pay one CC with another is to transfer the balance. I don't see Aquis offering BTs and the lowest APR they charge for cash and cheques is 35%:eek: + 3% cash advance fee. Your rate can be even higher.

flexeh

so how do you use these things then? to help build credit ratings up?

the 554 wasnt for a CC but a old utility debt. and i currently pay via bank transfer per month, so wasnt sure if i could do the same with this CC.

as you said about you cant balance transfer. how about if i paid the amount 554 on my current card instead of my rent, then used the CC to pay my rent and pay it off, would it work that way?

grumbler

flexeh wrote: »

so how do you use these things then? to help build credit ratings up?

You use it for your regular purchases an pay the balance in full each month thus not incurring any fees and/or interest.

the 554 wasnt for a CC but a old utility debt. and i currently pay via bank transfer per month, so wasnt sure if i could do the same with this CC.

Most utility companies don't accept CC payment, but it's worth checking.

as you said about you cant balance transfer. how about if i paid the amount 554 on my current card instead of my rent, then used the CC to pay my rent and pay it off, would it work that way?

I don't understand what you mean.

Cycrow

flexeh wrote: »

as you said about you cant balance transfer. how about if i paid the amount 554 on my current card instead of my rent, then used the CC to pay my rent and pay it off, would it work that way?

this would depend on how you pay the rent. Will they accept a credit card payment ?

but in theory, you do so something simlar with anything you will normal buy from your current account. Instead you put it on the credit card and use the money that would have come from your account to pay off the debt.

althou at a high interest rate card, this could cost you a lot.

are they asking for all the money now ? or do you just want to cleared?

if its the later, then just save the money until you have enough to pay it off, it'll work out cheaper

flexeh

just want to clear the default and also boost my credit file to be honest, as i will need to look at finance options by dec on a car ive got some saved for a car but going to be a couple of grand short. and due to default still being paid the rates for car loans are high

grumbler

If you struggle to pay £500 debt off, IMHO another £2K debt for a car is far too ambitious. You can buy a decent car much cheaper.

Cycrow

if the account was defaulted. then it wont make much difference if its paid or not. It'll still be a default on your credit file.

even if you pay it off now using other credit, your credit file wont really look much in 6 months time, especially if you are still paying of the credit card

how much money do you have free a month that you can use towards paying of the debt?

if you have some money already saved for the car, then use that to pay it off, then start building those savings up again

flexeh

need a new car because family expanding so need an estate or zafira so a double pushchair fits in.

i can afford to pay the 500 off now just thought it would help my file more with a credfile credit card builder.

As for my default, i didnt know i had it, turns out when i left the property years ago and gave forwarding address, they sent out a bill which i never got. Then fam member passed away so had no access to forwarding address. and default was taken out in October 2011. However nothing was on my credit file until DEC 12. i contested it etc and SAR'd Experian and Scottish power, after months of investigating Experian admitted they were in the wrong and made a mistake and ive been paying it ever since got it down from 700's