Credit Building Products - is it worth it?

mrianmcguire

Hi Forum,

I wonder if someone could answer me this:

If there are more positives vs negatives on my credit report, do the positives outweigh the negatives?

e.g. 3 x new credit facilities (credit builder card, high interest rate credit card and a loan)
but 1 remaining default account.

I guess what I am trying to learn is it worth having these credit building accounts/cards while there is still one remaining default (which I intend to clear ).

Your help would be appreciated and sorry if I've boggled your head with my explanation.

[Deleted User]

It's always worth building good history, whether you have negatives or not. The more good stuff, and the less bad stuff, the better.

National_Debtline

Hi

Your explanation makes sense but the answer will really depend on the way a potential creditor views the information based on their own criteria. For some the healthier aspects of your file might outweigh the default but for others perhaps not.

In general the older the default is the less impact it will have. Also, once the default drops off you will have a head start on a good credit history with the other products you’re paying off.

James
@natdebtline

Thrugelmir

Obtaining credit lines does not improve your credit rating per se. If you've previously defaulted om an agreement. The view could be that you are simply heading down the same road as before. Having learnt nothing from the experience.