MYTH? - Do 'Bad' credit cards affecting credit score

Afreeman3

I have never had a credit card before, however using free calculators my credit score is fairly low.

Due to multiple reasons (the nature of my income/job) I am very unlikely to be accepted for a credit card with my banks that I have a current account with.

I have been looking at cards like Capital one & Vanquis who are likely to accept anyone, in order to build my credit score.

However, I have been told by my partners dad that if I got one of these cards then my credit score would be 'frowned on' and possibly go down for simply owning one of these cards. I think this is rubbish and that they are seen just as a credit card, like from a normal bank.

Do let me know if this is a myth or if he is right and I should not get one of these cards to build my score.

Thanks!


p.s I am very aware of the problems that credit cards can use and would never use it unless I already had the money to pay it back. I have never been in debt and I am extremely good at saving.

Willing2Learn

If you get a sub-prime credit-builder card, and demonstrate that you can manage credit responsibly, then you will be building positive data history in your three credit files. (Your partner's dad is wrong).

Afreeman3 wrote: »

...Due to multiple reasons (the nature of my income/job) I am very unlikely to be accepted for a credit card with my banks that I have a current account with...

Have you actually made a credit application with the bank with whom you have a current account? There is a chance you may get accepted, if you have been managing your account well...

Edit: And welcome to the forum Afreeman3

[Deleted User]

Afreeman3 wrote: »

However, I have been told by my partners dad that if I got one of these cards then my credit score would be 'frowned on' and possibly go down for simply owning one of these cards. I think this is rubbish and that they are seen just as a credit card, like from a normal bank.

Lenders don't see the names of your credit providers, so there would be no frowning. Any card will build credit history equally.

He's right that the score will drop, but it will drop with any change to your files and doesn't matter in the slightest.

PRAISETHESUN

The real myth here is the value of your credit "score/rating" - since no-one will ever see these numbers besides you, there is no point focusing on them. Focus instead on building and maintaining positive credit history.

To answer the question that really matters, having a credit card is a simple and effective way of demonstrating you can manage credit responsibly, which will help contribute to positive credit history. The type of card or the lender (sub-prime or mainstream) doesn't matter - all lenders see/care about is that there is a credit facility of some kind which is being managed properly.

st999

The real myth here is the value of your credit "score/rating" - since no-one will ever see these numbers besides you, there is no point focusing on them

So why do these companies produce credit scores?

Oh! in the hope that at some time you will pay for the information.

Afreeman3

Thank you so much!

born_again

st999 wrote: »

So why do these companies produce credit scores?

Oh! in the hope that at some time you will pay for the information.

Add in now a few get a kick back due to saying you might get this card.... Open banking at it best. Oh that is all it was about. Cross selling...