Credit Card, Really?

MoneyPanda

Hi all, I'm in the process of "trying" to improve by credit report. However my credit file is currently being used as target practice, its that bad.

Anyway, I'm slowly paying off the debt and the 1 CCJ. However I keep getting told the best way to improve my score is to get a credit card. Even this website states this fact.

Even if by some sheer act of god I was accepted for an astonishly bad APR credit card, is this really the best course of action? I mean I really don't want any more credit but my file is affecting my job security, so I'll give anything a shot to improve the situation.

Any advice from you guys and girls will be greatly appreciated.

[Deleted User]

You're not trying to improve your score (as it's made up and no one sees it) but your credit history.

Get a card. Use for normal monthly purchases. Pay it off in full each month after the statement.

A. you will incur no interest in doing this and B. it shows to lenders you can be trusted with credit and paying it back.

How is your credit file affecting your job security?

National_Debtline

Hi MoneyPanda,


You may find that whilst there are debts still outstanding, showing defaults and CCJs, then improving your history will be much harder. Even if you did get a small card, and use it and pay it in full each month, the good may not outweigh the bad. However, once these debts are paid off and/or start to come off your history it will be easier to make improvements.


Credit files do take a lot of different factors into consideration, so checking things like being on the electoral role and not being financially associated with anyone you don't want to be would be the best place to start. Then try and clear the debts as best you can and once you have done this you could look at taking on some small credit and clearing it each month as stated above. Hope that helps.


Laura
@natdebtline

pcoventry

Hi,

I went BR in 2012 - used the vanquis card at 60% by spending £10 a month - I just closed it after 6 years and I am back on 999 score wise. It's just a tool which for me has served its purpose.

And just as well really! - despite my partner getting a chrome card I was still stuck on said 60% card 3K limit and Vanquis literally didn't want me to go any higher.

So I said bye bye.. i don't care if I take a hit - NO one wants a credit builder card on their file when they have done it.

[Deleted User]

Remember that a credit history requires maintenance. It's not a one off project.

MoneyPanda

Wonderful! Thankyou very much for the advice given everyone. I know it will not be easy but hopefully I'll get things sparkling again.

!!! wrote: »

How is your credit file affecting your job security?

I have to hold a security clearance and a bad credit file has a very negative impact on me retaining that clearance. No clearance, no job.

Thrugelmir

Then onus is on you to channel your efforts to clearing the debts as soon as you practically able. Demonstrating willing can have a positive effect. No such thing as a free lunch.

adindas

pcoventry wrote: »

Hi,

I went BR in 2012 - used the vanquis card at 60% by spending £10 a month - I just closed it after 6 years and I am back on 999 score wise. It's just a tool which for me has served its purpose.

And just as well really! - despite my partner getting a chrome card I was still stuck on said 60% card 3K limit and Vanquis literally didn't want me to go any higher.

So I said bye bye.. i don't care if I take a hit - NO one wants a credit builder card on their file when they have done it.

Some people with good credit history and already have a few credit cards from high street banks will still want to keep the sub prime credit cards / credit builder credit cards because some of these credit cards have perks, benefit that other major credit cards might not offer.

Aqua, Capital one credit card for instance, they are offering 0.5% cashback for both in the UK and purchase in foreign currency abroad. Not to mention zero fee for purchase in foreign currency.

Asda credit card is offering 1% cashback for purchase in ASDA.

And If you already have few major credit cards with reasonable limits, I do not think holding this sub prime creditcards will have impact on your credit worthiness.

[Deleted User]

pcoventry wrote: »

Hi,

I went BR in 2012 - used the vanquis card at 60% by spending £10 a month - I just closed it after 6 years and I am back on 999 score wise. It's just a tool which for me has served its purpose.

And just as well really! - despite my partner getting a chrome card I was still stuck on said 60% card 3K limit and Vanquis literally didn't want me to go any higher.

So I said bye bye.. i don't care if I take a hit - NO one wants a credit builder card on their file when they have done it.

If used properly and paid in full each month then you would incur no interest,

And lenders do not see the names of the credit cards or lenders on your files so would be none the wiser if it was with a sub-prime lender

adindas

!!! wrote: »

And lenders do not see the names of the credit cards or lenders on your files so would be none the wiser if it was with a sub-prime lender

I wonder if this was the case. On my credit file from CRA they are showing

My capital one CC is showing Capital One - Europe
My Asda CC is showing : Creation Financial (or Sigma Bank UK)

[Deleted User]

You see the names, lenders don't.