What is the Best rebuilding credit card when you have no debt?

loutus_flower

Hello,

I am debt free (yay me :money:), however I now have an unexpected headache I've been trying to fix.

I cleared my debt in December 2014

My Credit score moved from fair to very good throughout 2014-15. However in January 2016 I checked my credit score with experian on a whim. To my utter shock my score had dropped from very good to poor.

However, I've had NO debt since 2014 (not even an outstanding library fine!). I spoke to experian about this and they told me that it was due to changes made by my bank that caused the change in my credit status.


Now I have to rebuild my credit back. I've found 3 cards

* Aqua Reward- with classic apr 34.9% and cash back

* Aqua Classic - 29.7% apr access to my credit report

* Aqua credit card - 0% for the few months 29.7% apr


Not sure which one to apply for. I was adamant that I would NEVER have a credit card again, but in order to get back to ground zero, I have to accept that this is the only way.

I am really confused which one to choose. Can you help me out?

If all these cards unsuitable can someone suggest alternatives.

thank you. :beer::beer:

bigadaj

The experian score is meaningless, but you do need to use credit to build a decent file, which will allow you access to better credit deals, mortgages etc

So long as you maintain your discipline, just buy what you need and pAy off in full every month, then the reward card would be my choice, cashback is useful, and that card should have no fees on overseas use (check, don't take my word for it) so could be useful if you are on holiday.

Remember that experian are a comoany that need to make money, they aren't objective and primarily want to sign you up to a paid for service, their score is irrelevant. Continue to use credit responsibly, paying back in full and ideally paying no interest and options such as better cards, mortgages, and potentially loans if you have a need for them will follow.

Anthorn

I'm assuming that the defaulted accounts are still on your credit history and their status(es) have changed to "settled". If not contact the CRA for clarification. In that case you may not need a credit-building card and may qualify for a better card. No harm in trying an eligibilty checker to find out. Most of them will suggest a credit-building card if that's all you can get. I like the comparison tool on moneysupermarket.com

If you need a credit-building card will you need it for a number of years? If so the Aqua Advance which reduces the APR by 5% per year makes sense. That's where I started along with Vanquis back in 2008 when I became a financial untouchable, general non-entity and b'tard. If you intend to clear the balance every month and you will stick to that almost religiously, APR can be disregarded because you won't be paying interest. Just use the one that appeals to you the most.

loutus_flower

Thanks for the replies so far. If anyone else wants add a response, please feel free to do so.