Best card for strengthening credit file?

EmmaJ_3

I'm planning applying for a credit card to use for normal purchases, pay off in full each month, in order to boost my credit file so I am able to get a better cashback credit card in due course.

At the moment according to the 'smartsearch' on moneysupermarket my credit rating 'needs improvement'; I moved house & bank account & new job 6 months ago, applied for & was rejected by 2 ccs and a storecard at that time (resulting in total of 5 searches on my file). My file shows only 1 overdraft, listed as £0 at 0%, my mobile phone contract which is spotless, and no current ccs. In reality I have 2 overdrafts; HSBC graduate account £1500 at 0%, which is maxed out & in an ISA, and RBS student account (is supposed to be a graduate account) £2000 at 0%, which I use but do go into credit at the beginning of each month. I also have a HSBC mastercard with a 4k limit which is empty & not in use, but am keeping open for emergencies.

My file doesn't say I'm currently on the electoral roll (listed at 2 past addresses though) although I know I sent the form off 6 months ago; today the ERO office isn't answering their phone to check though.

Equifax smartsearch suggest 4 cards for me; barclaycard initial (27.9%), capital one classic (34.9%), aqua (35.9%), or vanquis visa (39.9%). As I'll be paying it off every month the rates don't really bother me, will set up a dd to pay off full amount and only use it for normal spending. Is there anything else I should consider when choosing which one?? None of them seem to have any particular perks that I'm bothered about. Are any of them better than the others?

Bokkens

Hello,

EmmaJ wrote: »

I'm planning applying for a credit card to use for normal purchases, pay off in full each month, in order to boost my credit file so I am able to get a better cashback credit card in due course.

I also have a HSBC mastercard with a 4k limit which is empty & not in use, but am keeping open for emergencies.

My file doesn't say I'm currently on the electoral roll (listed at 2 past addresses though) although I know I sent the form off 6 months ago; today the ERO office isn't answering their phone to check though.

I would keep it as simple as possible until your credit rating shows improvement.This may well take upto a year especially if other unforseen circumstances cause you to increase your debt.
You already have a credit card available with HSBC,use that and pay it off as intended,that way you will not have to apply for another card and it won't show on your credit file,as you suggest improve your rating by confirming you are on the electoral register with the council.
Personally at this stage I would avoid taking credit with the cards you have mentioned as the APR is very high and even though you may pay by DD there is always a temptation to use the cards in other ways and then your debt will quickly mount up.
To show that you are responsible ,show HSBC that you can use and manage the card you have ,6-12mths time your rating may well have improved enough to apply for a card that has uses that will benefit you rather than the banks.The hard work will be worth the wait.
Good luck.

EmmaJ_3

Bokkens wrote: »

You already have a credit card available with HSBC,use that and pay it off as intended,that way you will not have to apply for another card and it won't show on your credit file,as you suggest improve your rating by confirming you are on the electoral register with the council.

That's my problem that the HSBC mastercard isn't on my file - I've had it for 6yrs+ and never missed a payment on it, always at least paid the minimum off, never maxed it out (I used to use it for big purchases and pay it off in full, then for the last few years of uni, towards the end of each term I'd have to use it and then paid it off completely when student loan came in). I thought about asking HSBC to put it on my file, but decided that as I need to boost my file anyway because of the house/bank/job move & rejections, I wanted to get a different card for the file-boosting, so I can keep my HSBC £4k limit hidden from my credit file and keep it as an emergency card.

I won't be getting into any debt on this card - we have a few k savings now anyway, I just need to use something for grocery shopping etc then dd it off in full to get a record on my file of responsible use of credit.

Do any of the above companies have particular perks, or would be better to keep in reserve for the 'next' card as it were?

CLAPTON

i would suggest you start by applying for the Barcalycard Initial, use it regularly, set up a DD for the full amount and wait six months before applying for another

exel1966

EmmaJ wrote: »

I'm planning applying for a credit card to use for normal purchases, pay off in full each month, in order to boost my credit file so I am able to get a better cashback credit card in due course.

At the moment according to the 'smartsearch' on moneysupermarket my credit rating 'needs improvement'; I moved house & bank account & new job 6 months ago, applied for & was rejected by 2 ccs and a storecard at that time (resulting in total of 5 searches on my file). My file shows only 1 overdraft, listed as £0 at 0%, my mobile phone contract which is spotless, and no current ccs. In reality I have 2 overdrafts; HSBC graduate account £1500 at 0%, which is maxed out & in an ISA, and RBS student account (is supposed to be a graduate account) £2000 at 0%, which I use but do go into credit at the beginning of each month. I also have a HSBC mastercard with a 4k limit which is empty & not in use, but am keeping open for emergencies.

My file doesn't say I'm currently on the electoral roll (listed at 2 past addresses though) although I know I sent the form off 6 months ago; today the ERO office isn't answering their phone to check though.

Equifax smartsearch suggest 4 cards for me; barclaycard initial (27.9%), capital one classic (34.9%), aqua (35.9%), or vanquis visa (39.9%). As I'll be paying it off every month the rates don't really bother me, will set up a dd to pay off full amount and only use it for normal spending. Is there anything else I should consider when choosing which one?? None of them seem to have any particular perks that I'm bothered about. Are any of them better than the others?

I wouldn't take any notice of what 'smartsearch' search as it really doesn't mean much at all. Also take no notice of any 3 numbered credit score you come across as that means nothing either. All lenders assess applicants in their own unique way and can and will cherry pick regardless of what your rating suggests.

The possible electoral role exclusion is a crucial factor which won't help you so you need to chase that up quickly. You also need to get your credit reference from Experian as different agencies report differing information based upon which one the creditor may use. You CANNOT rely on one only. Some use only one (which will explain the missing cards possibly), some use both Equifax and Experian. There is a third call Call Credit, but they are a minor player.
One possible reason your HSBC card is not shown is because of the length of time you've had it. Older cards are not always shown as the rules for this changed in the late nineties. It could also be assisting you by not being shown as it reduces your visible available credit to other lenders.

gt94sss2

Don't bother to apply for new cards is my advice and ignore whatever 'smartsearch' is telling you - you would be better off just using your existing HSBC credit card and paying it off each month.

Ignore the fact that it doesn't seem to appear on your credit file - there are 3 credit card agencies anyway and most companies only use one or the other so when you apply for something, they never see your complete record anyway.

I would check you are on the electoral roll - the annual register was done at the beginning of December based on the forms councils would have sent in October.

Apart from that wait another 6 months or so for your existing searches to age a bit and then if you want, apply for a Egg Money or similar cashback card..

Regards
Sunil

EmmaJ_3

I'm not setting a lot of stock by the smartsearch thing, I used it linked from Martin's article though, and is about the only thing I have to gauge how I'm scored.

I've got both my statuatory £2 Experian and Equifax credit files and the HSBC card appears on neither - surely there's no point using it if it doesn't show up?

Is waiting more time before applying for a cashback card just as good as applying for a 'dummy' card now? The last rejected search was 4 months ago now. I was just worried that for example the Capital One cashback card wants you to have held £5k credit card previously, and I don't have anything like that on my record now.

gt94sss2

EmmaJ wrote: »

I've got both my statuatory £2 Experian and Equifax credit files and the HSBC card appears on neither - surely there's no point using it if it doesn't show up?

Is waiting more time before applying for a cashback card just as good as applying for a 'dummy' card now? The last rejected search was 4 months ago now. I was just worried that for example the Capital One cashback card wants you to have held £5k credit card previously, and I don't have anything like that on my record now.

When a company sees your credit record, they can't tell if you were accepted or rejected for credit - only that you applied and that another firm carried out a search. As such, too many searches on your record are a bad idea.

Therefore, I would not personally apply for another card at the moment.

Instead I would ensure you appear on the electoral roll and apply for a cashback card in a few months - the Egg Money card seems easier to get than the Capital One card..

As for the HSBC card not showing up - I woudn't worry.. using it will no doubt improve your 'internal HSBC credit score' and as HSBC are one of the top 10 credit card issuers in the UK with over a 1million cards, you are not alone!

Regards
Sunil

msaquib

I will be moving house soon. I will be completing electoral form and send it off to my local council. Any idea how long it takes for the electoral information to be updated with CRA & after how long I can apply for further credit?

At present at my current address, my credit rating is good. I recenttly applied for Halifax Purchase which has been accepted. I'm not thinking to apply for any further credit for the next 6 months.

Thanks
M

gt94sss2

msaquib wrote: »

I will be moving house soon. I will be completing electoral form and send it off to my local council. Any idea how long it takes for the electoral information to be updated with CRA & after how long I can apply for further credit?

I think CRA's normally update their records monthly though I did read that some were planning to update their records more often. The electoral roll itself is updated daily.

Regards
Sunil

EmmaJ_3

It might depend on your council though - we moved in June, when I first sent a form in (printed off from their website) I received a reply saying the register was closed at the moment, then a month or so later I received another form, filled it in and sent it back, and now I am still not listed as on the electoral roll by either Equifax or Experian. And they still won't answer their phone!!!