Credit card credit rebuild

mullery83

I can’t find the specific opinion on here so wondered if anyone could give their own views on this

I’m debt free after years of shocking history.

I’ve read into the best ways to improve credit and managed to get a vanquis (2years ago) and tesco credit card (6 month ago)

I’ve noticed my credit score is improving but worried vanquis could be damaging it. My credit file always says my weakness is low credit limit. I always pay on time in full FYI

Tesco has upped my limit 3 times in 6 months

Vanquis 0 times in 2 years

Would cancelling the vanquis potential help or hinder my credit
Thanks for views and opinions

Willing2Learn

If you close your Vanquis card it will cause your score to drop. But since your credit score is merely a marketing tool, it does not matter. The only thing that matters is that are able successfully manage your credit accounts. The overall consensus on MSE is that the best way to manage card accounts is to pay the statemented balance in full each month by Direct Debit

Well done on becoming debt-free

FWIW, If I was managing my credit accounts successfully, then I would apply for a third card, from a mainstream lender, before closing the Vanquis card.

[Deleted User]

With only two low limit cards, keep them both and use them sensibly.

EssexHebridean

Why are you concerned about your credit "score" (and as already been said - it's just a meaningless number in real terms).

Rather than the number on your score, focus on your credit history first. Set the direct debits on the credit cards to repay IN FULL :money: every month, monitor your use and never put anything on a card that hasn't been budgeted for and which you already have the money to pay for - this includes not falling for the old game of putting this month's expenses on the cards for next month's pay to cover. If it's going on the card then you should already have the money sitting in your account to pay for it, would be my suggestion. Use the MSE credit club to see which mainstream cards you have a good chance of getting - if there is one that looks likely, then apply for that with a sensible limit, and if successful, close the Vanquis card once it is cleared. Make sure that you are on the electoral register and check your financial associations are correct too.

I'm guessing it took you a fair while to go from having a good credit history to the position you are in now - and I imagine that has already improved somewhat from when you were still struggling to pay off debt? With that in mind, it will take a while to build back up again. Be patient, focus on the right things, DO the right things, and it'll happen.

mullery83

Thanks for all your advice

I’ll stick at it!

mullery83

I stuck in there and had a couple of increases over several cards must be doing something right !!! Very happy!!

EssexHebridean

Thanks for coming back to the thread - and keep on with what you're doing!