Multiple Credit building cards

alexsj

Hey all,

New to the forums.

I have been terrible with money in the past at uni etc etc.

My credit is very poor.

I have managed to get a credit card with capital one. It's the most basic possible with a £200 limit.

I use it for one transaction a month and just pay it off to get the good mark on my file.

I have heard about the credit builder cards which you pay £60 for and then after a year it should give you a good mark on your file.

My question is if I get multiple cards will this boost my credit even more or does this not stack?

I have a very good job now and have a lot of excess income and I want to work on improving my credit now so I can get a mortgage down the line.

Thanks for your help.

20aday

From various threads I've read on here at MSE over the past couple of years some people have advised charging the card with differing amounts i.e. £10/£20 and then paying the statement in full after it's been generated and before the due date. I see from your original thread you've been doing this; how long ago were you at Uni? Have you checked your credit reports from Experian, Equifax and Callcredit to see what's on there in terms of your previous money mismanagement?

I am personally using the CashPlus CreditBuilder card myself and whilst it's great to see the positive markers being reported to my files I feel it's perhaps not worth you pursuing this avenue because you are making a small transaction on your Capital One and then repaying the statement balance in full. If I'd stopped to consider it at the time I could've used one of my existing cards in a similar manner.

After a few months it'll build your credit history as you've committed to repaying your debts responsibly and may result in Capital One offering you a higher limit and also helping you obtain a mortgage etc.

I can't remember which recent thread I saw this mentioned in but another OP (so I can't take credit for this!) mentioned the Nationwide Save to Buy account: http://www.nationwide.co.uk/products/mortgages/first-time-buyers/special-offers#tab:save-to-buy

If you have surplus income per month to save then maybe you could consider this account when your credit files are a little stronger?

I hope my post wasn't too much of a ramble!

Thrugelmir

alexsj wrote: »

I want to work on improving my credit now so I can get a mortgage down the line.

Thanks for your help.

Then learn to save and manage your money better.

alexsj

Thrugelmir wrote: »

Then learn to save and manage your money better.

Thank you for your condescending and arrogant post.

That is the reason why I am here and asking questions.

If you have nothing constructive to add don't post at all.

alexsj

20aday wrote: »

I hope my post wasn't too much of a ramble!

Not at all thanks for the info.

Do you feel like the credit builder cards aren't worth it then?

pinnit2014

All lenders have different criteria for acceptance, regardless of what 'score' is down as per the CRA's. You could, if you could get them, have an additional 2 cards and pay them back in full each month but if you have defaults et al on your account, then it won't make a difference as long as these appear on your file - like i said thought, lenders have varying criteria.

What the other poster may have been getting at was ask yourself why you want a better score? Is it to get access to more credit and then simply bust your budget by running up further debt? Better to manage your budget as per your income rather than looking for additional credit that may be unmanageable. I was guilty in the past of taking out more cards etc just because i could and paid no attention to the implications of this.

bsms1147

There is no advantage with a card you describe charging you £60 a year, over the CapitalOne card you have which is free. Simply pay it off in full, every month and on time.

I defer to the other posters in asking what your overall aim is though.

CLAPTON

alexsj wrote: »

Hey all,

New to the forums.

I have been terrible with money in the past at uni etc etc.

My credit is very poor.

I have managed to get a credit card with capital one. It's the most basic possible with a £200 limit.

I use it for one transaction a month and just pay it off to get the good mark on my file.

I have heard about the credit builder cards which you pay £60 for and then after a year it should give you a good mark on your file.

My question is if I get multiple cards will this boost my credit even more or does this not stack?

I have a very good job now and have a lot of excess income and I want to work on improving my credit now so I can get a mortgage down the line.

Thanks for your help.

you haven't said what your credit records actually show
however if you already have a CC then there is no point in getting a credit builder cards that charge.

if your credit card shows defaults etc then you will probably have to wait until they drop off but keep using the CC you already have and paying in full

by all means try for a second card after say 6 months

alexsj

A bit more background as I may not have been clear enough initially.

I am debt free now. I have no debts and learnt the lessons of my youth and manage my money better.

I am conscious however that my past actions have affected my credit so when it comes to buying a house I will have marks against me.

As a result I was looking for a way to improve my score quicker so wasn't sure if getting multiple credit builder cards would boost my score quicker so I can obtain a mortgage quicker.

I have no need to get credit so I can get credit cards it's purely for the mortgage and any cards I get (got) are to repair the damage I previously did.

bsms1147

alexsj wrote: »

As a result I was looking for a way to improve my score quicker so wasn't sure if getting multiple credit builder cards would boost my score quicker so I can obtain a mortgage quicker.

No, it won't be any quicker.