BITS Credit Card - Worth a try?

Fighter1986

So, I do believe I have the worst possible credit rating in the known universe.

I've just been discharged from bankruptcy and have been through the post bankruptcy credit-file cleanup. I no longer owe a penny to anyone.

I've been declined for Aqua, Tandem Journey, Tesco Foundation, and Vanquis. Capital One's Pre-app checker says no, too.

I was also declined for several basic bank accounts.

I have two mobile phone contracts which have always been up to date and will continue to be, and a Monzo account. I've just opened a Nationwide FlexBasic and will be using that as my main account moving forwards.

I've checked CIFAS, there's nothing showing there. I've also ensured I have no financial associations showing on any of the three credit files.

I don't want to apply for anything else for the next 12 months. I want all these recent applications to be completely gone before I approach anyone else again.

Has anyone used BITS? Do you think there's merit in my situation? I'm tempted to do that for the next 12 months as a way to bolster my credit history.

I'm no longer short of money, I'm saving plenty, I've plenty in the bank, my circumstances are very different to when I was bankrupt. I've no requirement for any form of credit, but I'd like to arm myself with the best credit history possible moving forwards. 

SnowTiger

Fighter1986 said:

Has anyone used BITS? Do you think there's merit in my situation? I'm tempted to do that for the next 12 months as a way to bolster my credit history.

https://www.getbits.app/

Basically, you pay a fee ranging from £2 to £8 a month to Bits and they reports it to CRAs as a loan and repayment.

LOQBOX does a similar thing, but you get your payments back after the twelve month 'loan' term.

I guess it's a way to pad a thin credit file.

Fighter1986

Oh yeah, good shout on Loqbox.

I've just opened the BITS £2 a month and Loqbox £20 a month. 

HOPEFULLY 12 months from now I won't have what clearly is the most appaulling credit history known to man. 

Got to be a new record, being declined for Vanquis, right?

I've written to N Hunter, too, I'm wondering if there's some oddity going on.

I do find it strange that Aqua, Tesco, and Tandem all said "YEAH WELCOME!" and then a couple days later changed their mind.

Fighter1986

Okay - big props to BITS.

As part of the sign-up process they gave me a call to discuss my situation and what I wanted to achieve. The advice given was top notch and well tailored to my circumstances - he explained exactly how I should approach credit for the next few years, emphasising the importance of maintaining a small number of impeccably maintained credit accounts for a long time. 

He went in to how many people in my situation (recently discharged from bankruptcy) often go ham tryna accumulate multiple lines of credit in an effort to "prove themselves" but how this approach can have a deleterious effect, and a more laid back approach often paints a better story of handling finances responsibly over the years. 

I don't work for them and am not on comission but heck, I'm floored. I'll certainly be recommending them whenever appropriate. 

maxximus75

Of course they will be selling themselves and their products to you...... they will be getting a monthly fee from you for pretty much doing an admin task.

You have only just been discharged and have applied for multiple products in a short space of time.  You need for things to settle first before even starting to think of applying.... this is probably why you have been turned down.

You have waited this long..... don't rush into paying for a quick fix.

Fighter1986

maxximus75 said:

Of course they will be selling themselves and their products to you...... they will be getting a monthly fee from you for pretty much doing an admin task.

You have only just been discharged and have applied for multiple products in a short space of time.  You need for things to settle first before even starting to think of applying.... this is probably why you have been turned down.

You have waited this long..... don't rush into paying for a quick fix.

That's quite a scating asessment of the situation.

His advice was much more well rounded than you give him credit for. He wasn't trying to "sell me their products" or upsell me in the slightest - and I don't believe my post mentioned anywhere that he was?

I don't believe anywhere that I asked for or suggested a quick fix either? I believe the overriding advice I give all people is that "maintaining a small number of well run accounts for a long time" is the best approach.

Of course, that "Long time" is only just beginning for me, which I fully appreciate. And yes, you're absolutely right I have applied for a number of products recently. I require a bank account, and I'll have a small number of well run accounts open for a long time moving forwards; I've got my Three contract, BITS account and Loqbox. BITS and Loxbox are going to be closed after 12 months at which point I'll re-asess the situation.

I'm applying for nothing in the mean time, so by the time 12 months have passed, all of this months credit footprints will have disappeared from my credit files.

I'm not rushing into a quick fix, I'm setting things up for a prosperous future.

Thank you for your time

penners324

Why are you downgrading from a current account (Monzo) to a basic account (Nationwide)?

Fighter1986

I don't consider it a downgrade.

The Nationwide offers me more features I'll take advantage of - like proper online banking via a website not just an app.

Paying in cheques via smartphone camera.

Actual phone lines handled by nice people rather than Millenials.

It might just be me, but personally I can't stand the way Monzo are run. Their social media posts are infintile, their support is slow and manned by people who don't know much about banking regulations - when I had to make a claim via the direct debit guarantee I literally had to give the member of staff a full step by step lesson on how direct debits work and what their obligations as a bank are - over their in app chat, which is slow.

On the subject of them not reporting account activity to Equifax, one of their investors brazenly told me outright he couldn't give a monkeys what the customers think.

I can see there's a market for Monzo and they clearly have a target demographic but I'm not in it. I much prefer the way a good old fashioned well established firm like Nationwide do things. Monzo is a circus of immature, inexperienced children.

Ray5d

Hi everyone 👋 

I have been using Bits since December, paying £8 a month. 

I haven’t had a mortgage since 2014 and my credit score as basically been in the Experian ‘fair’ range and unmoving for years. 

So I thought I would try it out. 

Two months ago my credit score magically jumped 80 points. And Experian Credit Expert pointed to the regular servicing of Bits as the reason. 

It also projected that as my credit agreement length increased, I’d see another 120 points of increase over the coming year. 

I’d be happy just with that, as it delivered what it said on the tin. I didn’t get into unnecessary debt but was able to show I can service a modest credit agreement. 

However I have to echo one of the other comments here: my call with Bits founder Faisal was immensely valuable. I learned so much about the world of credit. And what I should be wary of doing in future. Like lots of credit checks in succession or opening lots of credit cards at one time. Which I totally did like a complete rookie, thinking it would help. 

Faisal set me straight and I check back in to the new videos they have producing in their Credit School series. Super bite size but also stuff that you’d think should be widely available. Well worth visiting the Bits website and watching because I think they are freely available to non-Bits members. 

All in I am satisfied with my care. 

I should add that I think I’m fairly savvy as someone with savings and who runs his own business. But still learned so much as a Bits member. 

reliquit

Just wondering......if someone does a credit search see just the fact that you have a card repaid in full every month, or do they see that it is a Bits card? If the latter, then will that limit the impact it has?

[Deleted User]

Lenders don't see the names of other lenders, just the category of the credit.