Payday Loans bad for your credit rating but is Vanquis?

BRB-79

Hi all,

I was in Barclays bank yesterday as we were going to open a joint account with them (me and my wife already have current accounts there). The lady dealing with us was very open about what was good and bad and she advised us to wait 1 more year until my BR is removed from my credit file as it would affect my wife's credit rating if we joined accounts.

We then started asking about the best ways to improve credit ratings etc. and she said I should avoid using a Vanquis credit card. I have one and after 20 months I have the £3k limit due to paying my balance in full each month. She said that banks can be quite snobby about where credit is coming from and put the vanquis card in the same sentence as payday loans. I have heard that mortgage providers can take a dim view on you if you have a payday loan account, even if it's settled, but I haven't heard Vanquis being a problem before. She said it shows you have had to use bad credit rating cards in your past if you have one but surely that's far less of a concern than having the BR on there? I suppose the vanquis card will forever more be an account on my file even if I close it down...

She said that the barclaycard initial I also have is much better (no surprises there) as it's a "normal" card provider.

She also suggested using your card every month shows you're dependant on credit and not a good idea but seemed to backtrack when I pointed out that I use my card for everything and pay it in full each month.

Is she right? She seemed to contradict everything I thought I was doing right in the last few years since being discharged!

Anyone else heard stories like these? Thoughts ?

[Deleted User]

Oh this is taking me back, LOL this sounds like Barclays! remembering when the same aforementioned bank told me Barclaycard actually was nothing to do with them not connected apparently, who was CAB? (no not joking) nobody in the town could have an account with this branch even discharge's BR and beware when I had a Vanquis account and was paying them through said bank where I held a basic account which suddenly got an informal overdraft (!) to pay Vanquis even when there was insufficient funds on my account but because I had made payments before...! so I don't recommend either the bank or credit card provider. Snobby Barclays not much! I remember the bank manager when he finally took control reversed his hand on greeting me and taking my card, he couldn't understand his bank caused issues - totally avoidable but refused to listen.
I was fortunate in that Vanquis left me alone, after the debt relief order was granted, not like some of the stories you see on here and oh same manager of bank told me I'd be, what was it, "hounded by them forever in a day" still had a balance of bank after they took it upon themselves to pay - I wasn't hounded he would got that wrong too.

I was deversated I actually paid the payday loan types no problems thought I had my basic account there to protect me, drained for Vanquis. Yes Proceed with caution.
As a result I had overdraft shown on my credit report but not the credit card! still trying to work that out!!

MisterBaxter

Nonsense (credit card bit). Lots of people here post about the use of 'sub-prime' cards such as vanquis for credit building purposes and after about 12 to 18 months successfully apply for mainstream credit cards. The key is in sensible use of the card, use it regularly, keep well within limits and pay at least the contractual minimum payment each month. This will show that you are using credit sensibly. Of course with their very high interest rates it is best to pay off in full each month. One of the main problem I can see with the sub-prime cards is the very low starting credit limit which means even with sensible use it is very easy to get close to the limit each month which does seem to look bad on credit checks.

I've also seen posts here suggesting keeping the vanquis card open for a good while after getting a mainstream card as having a longstanding account that is in good order on the credit file is also a positive.

There may be some lenders who look down on the sub-prime card market but everything I've read suggests that isn't a major problem. Having a good history is the main thing so keeping the accounts you have in good order is essential.

woodformoretrees

Barclays want you to have as much as possible with them. In my meeting with them they were disparaging about everything that they didn't own.

rizla_king

She is talking complete nonsense. Someone credit checking you on an application doesn't even see who your current cards are with. They just see the type of account it is e.g. credit card, not the actual lender.

tigerfeet2006

[lease hit the spam button on kamya's post folks.

freddy911

rizla_king wrote: »

She is talking complete nonsense. Someone credit checking you on an application doesn't even see who your current cards are with. They just see the type of account it is e.g. credit card, not the actual lender.

+1

Other people don't get to see the name of the lender when viewing your report.

debt_doctor

rizla_king wrote: »

She is talking complete nonsense. Someone credit checking you on an application doesn't even see who your current cards are with. They just see the type of account it is e.g. credit card, not the actual lender.

Completely correct.


DD

CKhalvashi

woodformoretrees wrote: »

Barclays want you to have as much as possible with them. In my meeting with them they were disparaging about everything that they didn't own.

This was my view with them, too.

We spoke to them about a company we were buying several years ago, and my OH was called (and I quote) a 'stuck up b!tch' when we said we'd rather keep our personal banking with HSBC, as we refused to pay £25 a month for the same services.

Within a week of the sale, Barclays had annoyed us so much we'd moved that company to HSBC too, which was more hassle from them, so many things don't surprise me with them now.

CK