New start

Flyinghigh

After running up a lot of debt when I was younger I have finally just been accepted for a barcleycard inital with a £400 limit I have a lloyds tsb current account with a £1500 overdraft I really want to increase my credit rating I am going only to use my barcley card to £200 max and pay it off full each month I want to leave lloyds and open a new current account and pay off the overdraft over time I have seen this deal where you pay £5 a month and it pays of a loan of sum sorts that at the end of 12 months they put on your credit report that you have paid a loan off is it worth me doing this thanks

opinions4u

Do you have a full stop problem?

I have seen this deal where you pay £5 a month and it pays of a loan of sum sorts that at the end of 12 months they put on your credit report that you have paid a loan off is it worth me doing this thanks

Absolutely not.

Get on the voters roll. Pay your debts on time. Clear the balance of the credit card in full. Reduce your overdraft balance.

Do not take out something silly and gimicky in the belief it will change your fortunes in the credit market.

MrSilk

opinions4u wrote: »

Do you have a full stop problem?

Absolutely not.

Get on the voters roll. Pay your debts on time. Clear the balance of the credit card in full. Reduce your overdraft balance.

Do not take out something silly and gimicky in the belief it will change your fortunes in the credit market.

I agree with opinions4u, this isn't the ideal thing to do. Look at and deal with what you have first before even thinking of opening new lines of credit with the hope of improving your file. You'd be better off paying £200 a month towards your overdraft rather than spend £200 on the CC and pay that off.

Just because you've got a new CC, won't mean that your overdraft would be seen as less of an issue. Plus, it could take years of spending and paying off the CC on time for it to even start to make a positive difference on your credit file.

You say you ran up lots of debt, has any of this need paid off at all?

grumbler

Flyinghigh wrote: »

....I have seen this deal where you pay £5 a month and it pays of a loan of sum sorts that at the end of 12 months they put on your credit report that you have paid a loan off is it worth me doing this thanks

:huh:
What is sort of service is it that you can't do yourself?
With an overdraft and a credit card you don't need any 'deals' for building your credit history yourself and for free.

And, it's Barclaycard, not Barcleycard.

MrSilk

grumbler wrote: »

With an overdraft and a credit card you don't need any 'deals' for building your credit history yourself and for free.

That's true, when the OP cannot service the debt on the OD, what's the point in opening new lines of credit.

If the OD goes bad, then it would be a waste of time and money to have this Credit Builder loan.