Post IVA Credit Really don't want it!

mother_hen_2

I think it's 6 years now since we started our IVA, following guidance given here we have cleaned up our credit files they are showing all high scores. (phew).
We both have monthly mobile contracts and our mortgage is also on the credit files - both being paid appropriately.
We are hoping to move house and apply for a new mortgage, now all the advice given on here is get a credit card to improve credit status, however, I feel so reluctant to do that - to be honest we don't need one, we don't want one.

Will the Mortgage and phone contracts be enough when applying for a new Mortgage?
Surely having a credit card reduces the amount we are allowed to borrow on a mortgage?
Thankyou

catwoman73

just get a credit card aand use it once a month for fuel or whatever and pay it off in full by DD.

You might also find it useful for car hire etc.

Foxy-Stoat_3

I would speak to your existing lender and see what they can offer you if you are increasing your mortgage.

Getting a credit card and using it for say food and fuel and clearing it when your statement comes in will increase your credit profile after 6-12 months, but if you already have a mortgage that you have been making payments on for yours without default may be all you need to secure another one.

debtfree2016

If you were to apply for a credit card keep the limit to £100, even if you purchase £10 of goods and pay off when the payment is due will show good credit. I'm sure that even your current mortgage provider will take the same steps as a new mortgage provider checking to see if you can make repayments through a strict Income and Expenditure report. If they do a check on you this will create a footprint in your credit history, the more footprints you have will show that you have been applying for credit. So I would suggest an informal chat with them showing them your credit report before they do a check and then maybe a chat with a mortgage financial advisor.


These are only my views but I hope they help.

mother_hen_2

Thankyou for your replies they all seem to be implying get a card sigh...

mwarby

I'll dissent a bit here. if you are looking for a mortgage in the very near future you may be aswell not getting a card. A card that you've been using responsibly for say a year or 2 looks good, a card thats a month or 2 old doesn't give that info, but does risk assumptions being made about affordablility(they don't know your not maxing it out and paying back min only)

mother_hen_2

Thankyou so much that makes perfect sense to me. I have to admit we had decided not to apply for a card so your advise just confirms that.

adyj73

I got a credit builder card while still in my IVA. I have used it to improve my credit score once the IVA drops off. You have to be really good though and not go back to previous spending habits. I've been a little naughty but got it back under control.
My IVA finished early last April but it still shows on my credit file until next October as do some of the creditors showing in default. I also managed to get a contract mobile this month which really surprised me.