Repairing/improving CRF with Barclays Partner Finance Loan

ambc

Evenin'.

Just after a bit of advice on whether what I'm about to do will be beneficial in terms of improving/repairing my CRF.

After a financially rocky few years (mainly, divorce leading to bankruptcy in 2007), I'm just about back on track. I've spent the last 7 years being super careful and I'm at the point where I have a practically squeaky CRF again and would like to at least explore the possibility of a mortgage in 2 or 3 years' time.

However, I'm assuming that I'll probably need to demonstrate some credit history after everything was 'reset', so to speak. I've started being accepted again for finance and already have the basic CapitalOne credit card which I spend around £20-30 each month on before paying off in full each month.

I'm VERY reluctant to buy anything substantial on credit, but am due a work Mac upgrade this year (I'm self employed). Now, I could buy the Mac outright today if I wanted, but I wondered whether it would be better to buy it on finance with a view to using that arrangement to build some credit history.

I have already been accepted by Barclays Partner Finance for the loan, but am yet to hit the final button.

I also appreciate that by doing this I'll be paying an extra couple of hundred in interest over the life of the loan, but I am eligible for the Apple education discount which virtually cancels that out. So, effectively it's interest free - and if it helps rebuild my CRF then the small amount of interest I may end up paying could be worth it.

I may also settle the loan early after just a few months, too - the T&Cs say that interest will be calculated up until the settlement date, so that's not really a problem.

Bottom line is: would some short term finance like this be a useful thing to do in terms of rebuilding my CRF over the course of the next couple of years?

Thx.

[Deleted User]

Why not just get a credit card - sub prime if need be - and use it regularly, paying off in full each month?

That way you don't pay any interest and have a longer term way of proving you can handle credit.

ambc

Yep, I did mention that I've already done this. I was just wondering whether an additional small line of credit would help further.

ambc

In other words... is a £20-£30 regular spend on a sub-prime credit card that's paid off in full each and every month *enough* to rebuild a knackered CRF to the point where applying for a mortgage in 2-3 yrs becomes a viable possibility?

Anyone?

Thrugelmir

Depending on the question asked you may need to disclose the previous bankruptcy.

The key thing above all others is the size of your deposit. Something better to focus on rather than borrowing unneccessarily. Also ensure that you are on the electoral every year and pay your ulitity bills on time.

As the extent of available data widens then use of credit has less and less bearing on the application.