Discharged :)

Potbellypig

cjmillsnun wrote: »

But if LEK just puts monthly expenses on it and pays in full each month then he will have made a good decision.

I was near to being BR, some good fortune allowed me to not have to go BR. However my actions since that time have been to slowly rebuild my creditworthiness with one credit rebuild card. Since then I now have 2 high street credit cards - at the moment one with a small balance - less than £300 on a 0% balance transfer that should be paid well before the offer ends and one that is used for fuel each month and then paid in full. I have zero other debt, just satisfied defaults from when I was in trouble. I am now in the process of getting a mortgage with my wife with a high street lender.

My advice to LEK. Ditch Vanquis (if it arrives just cut up the card and send back with a note saying you have decided not to take them up on their offer after all) and just keep Capital One. Put no more than half the credit limit on it (or what you can afford to pay back each month if less), and make sure it is paid off in full each month. This will cost you nothing as you won't pay any interest. By putting no more than half of the credit limit on it, you're showing that you are not excessively using the credit.

Do NOT be tempted by any other form of debt at this time. It really isn't worth it.

How do future lenders know he's putting half the credit limit on the card if he's paying it off in full every month?

VeryInTheRed

Because your credit report shows your limit, your balance and how much you pay each month.