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Credit Card for somebody with defualts

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Posts: 3 Newbie

I couldn't find this on the board, but which credit card can somebody with defualts get? I have a default on my credit cards from Halifax and Virgin from 18 months ago and they have been closed.I don't like using my bank card on internet sites and would like a credit card for that. I can pay in full each month. thanks.
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I did optimistically try applying for a basic British Airways Amex card a year or so ago, and got rejected even with a reasonable salary greater than the £20k? they like (have one Vanquis card default that is being paid back, no missed payments, and a CCJ that dropped in Oct/Nov).
Also looked through Clearscore etc. a couple of times at what cards I was eligible for / could possibly get accepted for and the all came back as 0% chance (even sub-prime cards / credit builders).
3-4 months or so ago, tried my luck directly for an Ocean credit card (Capital One) and got accepted for that, although a £200 limit (pretty useless for most things, but it does allow me to further build a positive history).
Utilisation wise, been up to 75% of it, but with a grocery shop and a tank of petrol, easy to do.
Have been making above the minimum payment when me statement comes out, and then clearing the balance fully when I get paid towards the end of the month.
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stewartwilliams said:
Have been making above the minimum payment when me statement comes out, and then clearing the balance fully when I get paid towards the end of the month.Ideally you want to be paying in full every month, before the payment due date. As long as you're paying more than the minimum it'll not be hurting your credit history, but you will be paying interest. And if you're having to wait until payday to be able to afford £150 then it's probably quite important not to be paying any unnecessary interest, no matter how small the amount.Most cards will allow you to request a different statement date (and therefore a different "Payment Due" date). This may be worth looking into, it should mean you're able to pay each statement off just after payday.
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fatbelly said:Try theseMany thanks: that's a useful guide to starting to build my credit back up too.I had to take your link out to to MoneySavingExpert in my reply, as they wouldn't let me reply otherwise, stating "You have to be around for a little while longer before you can post links".0
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stewartwilliams said:I did optimistically try applying for a basic British Airways Amex card a year or so ago, and got rejected even with a reasonable salary greater than the £20k? they like (have one Vanquis card default that is being paid back, no missed payments, and a CCJ that dropped in Oct/Nov).
Also looked through Clearscore etc. a couple of times at what cards I was eligible for / could possibly get accepted for and the all came back as 0% chance (even sub-prime cards / credit builders).
3-4 months or so ago, tried my luck directly for an Ocean credit card (Capital One) and got accepted for that, although a £200 limit (pretty useless for most things, but it does allow me to further build a positive history).
Utilisation wise, been up to 75% of it, but with a grocery shop and a tank of petrol, easy to do.
Have been making above the minimum payment when me statement comes out, and then clearing the balance fully when I get paid towards the end of the month.
Thanks for the reply. I'm not sure if I will get a cc then, even though a £200 limit is fine for me and I could pay it straight back. HSBC opened a savings account without a check as I have banked with them for years and haven't blotted my copy book with them. I guess a savings accout isn't the same as CC too.
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Yeah - a savings account isn't credit.
Always pay a credit card off in full before the date they state.
£200 is a bit tight but if you are handling it properly you can ask for a higher limit.
Before you apply for another card, you should check your credit report (using a free one) to make sure everything is correct and then use a pre-eligibility checker.
https://www.moneysavingexpert.com/eligibility/credit-cards/search/?goal=CC_CREDITBUILDER
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fatbelly said:Always pay a credit card off in full before the date they state.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0 -
I do have one card that is paid in full by d/d each month.
For others, I have a d/d for the minimum and manually pay the balance
Either method works. The important thing is to avoid interest0 -
My statement gets issued on the 7th of the month, so today. Minimum payment has always been £5, although £0 today as I've used nothing.
Minimum payment has to be by say the 3rd of the following month, but as that's been made and the balance cleared, I'm not sure if I've paid any interest, although if I have, a few pence isn't going to be missed.
Whether keeping the funds in my bank 2-3 weeks longer is better, I don't know.
No idea if they'll offer me an increase (Vanquis did after a few months, and then every now and again after that).
There's no issue paying any outstanding balance back as soon as the statement hits if required.
I'll just keep it in order for the time being and see in a few months if I can get something perhaps better (Although I'll make sure I don't over-extend myself by treating the balance as free money)
That said, whether the interest rate is 39.9% or 4%, as long as it's paid on time, that doesn't matter.
It's handy that providers just do a soft search on your account so that you could possibly do 2-3? without any ill effects should you want to test the waters, so to speak (I assume a hard search then occurs if you're pre-approved / accepted?)
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stewartwilliams said:My statement gets issued on the 7th of the month, so today. Minimum payment has always been £5, although £0 today as I've used nothing.
Minimum payment has to be by say the 3rd of the following month, but as that's been made and the balance cleared, I'm not sure if I've paid any interest, although if I have, a few pence isn't going to be missed.If you pay the full statement balance before the payment due date you'll pay zero interest. You absolutely must pay at least the minimum by the due date, otherwise you'll be charged additional fees (as well as tarnishing your credit history).In your example, let's say you receive the statement on the 7th, payment due by 3rd of the following month. Statement balance is, say, £150. You can pay £150 as soon as you get the statement. You can pay £150 on the 3rd of next month (though in practice you're better to pay it a day or two before, just in case there are any unforeseen technical glitches of whatever). Or, you could pay £10 straight away, £40 in a week's time and £100 just before the 3rd. In all three of these scenarios you have paid the full balance by the due date, so zero interest.Simplest is to set up a DD for the full amount, most cards will call the DD on or just before the due date, though some do it a bit earlier. But your statement will always tell you "Your Direct Debit will be taken on <date>". You just need to make sure there's the cash in your account to cover the DD when its called for.stewartwilliams said:
Minimum payment has to be by say the 3rd of the following month, but as that's been made and the balance cleared, I'm not sure if I've paid any interest, although if I have, a few pence isn't going to be missed.
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