Should I apply for more credit??

YankieDoodle

Hi,

I'm looking to try and get on the property ladder within the next year or two but my credit file sucks!

- I have three settled accounts that had 2-3 late payments each (2 years ago)
- About 10 payday loans settled (Yes, stupid, I know!), of which the last was 18 months ago

I know this would put me in a bad position to apply for a mortgage. I currently have one active credit card (£11k limit) which I use for absolutely all my monthly spending and pay off in full every month.

My question is - would it improve my credit file to get another credit card and spend maybe £100 on per month and pay off in full. Does it look better having more accounts in 'good repayment order'?

Lastly, does anyone know of any sub-prime mortgage lenders that will use the helptobuy scheme i.e. 95%LTV?

Thanks!!

Voyager2002

Unlikely that switching some of your credit card use from one card to a new card would make any difference. However, you should look at Cashback and Reward cards, since the extra pennies or points you could earn on substantial card use might make a fair difference over the next couple of years.

YankieDoodle

Thanks for the reply.

My CC is with Barclaycard. I did look at switching my card to a Freedom rewards card but the returns hardly seemed worth it. I guess pennies make pounds though...

CLAPTON

Having a couple of active CCs makes sense in any event.
It has been known for a card to be refused for a random reason so a second can be useful

Thrugelmir

YankieDoodle wrote: »

My question is - would it improve my credit file to get another credit card and spend maybe £100 on per month and pay off in full. Does it look better having more accounts in 'good repayment order'?

Ask yourself what it actually proves. Focus your efforts on ways of finding ways to save money and thereby boosting your deposit. Far more productive.

thebritishbloke

YankieDoodle wrote: »

Thanks for the reply.

My CC is with Barclaycard. I did look at switching my card to a Freedom rewards card but the returns hardly seemed worth it. I guess pennies make pounds though...

You could try and ask them if they'll transfer your account to a "BarclayCard Cashback" card. 1% on AmEx spend and 0.5% on VISA spend. Might not sound like much but it very quickly adds up if you put all your spending on it.