DAS (Scotland) is ending

Db33

Hi Guys

The last payment of my debt arrangement scheme is next month.  Once it is finished I will be looking to build my credit file back up any way I can.  I am just looking for some pointers and advice from anyone who may have been in the same boat previous.  Eg is there any specific credit cards I could obtain to build up my credit file? Any hints or tips at all really would be most welcome. TIA.

CliveOfIndia

The usual advice is to use a credit-builder card.  These are marketed more towards those with less-than-ideal credit histories, and have much higher APRs and much lower limits than more mainstream cards.

Take a look at the MSE article to get some pointers ( https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/ ), then run some eligibility checks (ideally on the lender's own website) to get an idea of your likelihood of being accepted.

Don't make more than a couple of applications in a short space of time - if you find you're being declined, leave it a few months before trying elsewhere.

But if/when you do get approved, the rules are:

1) Only use it for stuff you have budgeted for, can afford and need to buy anyway - food, petrol, whatever.

2) Don't worry about only using 25% or whatever of your credit limit - use as much as you want, as long as you can afford it (although obviously don't go over your credit limit).

3) This is the most important one of all.  ALWAYS repay the full statement balance, every month, on time without fail.  Ideally set up a Direct Debit for the full balance.  So long as you always pay in full, the high APR is immaterial as you won't be charged any interest.

Doing this will gradually start to build up a favourable credit history.