Low credit score 654 - which credit card is best?

jamesff1

Hi, I have a low credit score of 654 and have been turned down for a mortgage because of this by the Post Office (Bristol and West). I want to boost my credit rating and get a credit card which I will pay off completely every month.

Which one should I apply for, I don't want to be refused as this will knock my credit score even further

Any advice is welcome, thanks

jimbo26

Capital One Classic

jamesff1

Thanks Jimbo 26

If I spend £100 / month on this and pay off in full each month how many points will my credit score improve by each month?

Puma21_2

No!!!!!!!!!! My advice would be to avoid Capital One!!!

I have an Aqua Card...yes they charge high APR's but they seem very helpful.

bathgatebuyer

I have the same Capital One credit card to try and improve my credit score and it's been ok so far - you just absolutely have to commit to paying off what you spend every month. I think it has made a little bit of a difference to my own credit score (which isn't that far off yours at 650 - but it was in the 400s until quite recently!).

PROLIANT

Puma21 wrote: »

No!!!!!!!!!! My advice would be to avoid Capital One!!!

I have an Aqua Card...yes they charge high APR's but they seem very helpful.

Based on what exactly?

PROLIANT

It will take a full year to gain a half decent credit rating, lenders like to see as much good payment history as they can.

Treadmill

Halifax do a classic card now that might just fit the bill, not cheap though.

Don't rule out other cards though, I scored 631 with Experian, but still got a Barclycard Platinum, and A Virgin Money card.

Moggles_2

Treadmill wrote: »

Don't rule out other cards though, I scored 631 with Experian, but still got a Barclaycard Platinum, and a Virgin Money card.

Exactly. Judging from the posts on here, it's easy to be lulled into a false sense of security by these ratings. Then it comes as a shock, when your application is turned down. Equally, some posters are put off applying at all, because of low scores.

Credit reports, when ordered directly from Experian and Equifax, are valuable. After all, this is the information lenders search when you apply for credit. Additional services like credit scores are a nice little earner for the credit reference agencies, but of little practical value to applicants and certainly not worth paying extra for.

Remember credit reference agencies are there to provide your credit history, but the actual methodology (and the process of scoring itself) is done by their clients, the lenders. None of us - including the CRAs - knows what criteria are used by individual companies. Lenders do not disclose this information. It's not uncommon for MSEs to post different scores from the three CRAs. I suspect that the lenders' scores, had we access to them, would be different from each other as well!

Fortunately, there are ways to improve your chances of acceptance. For tips, I would have a look at the *Credit Rating* articles on the main site, in particular, Martin's *Manage and Improve your Credit Score* article. Don't let credit scores distract you from tackling the things that really matter.;)

Treadmill

True Moggles, in the same way people convince themselves because they have a low score they can only get a non conforming mortgage and that is not always the case, I fell into that trap in 2003 when I went straight for a sub prime mortgage with SPML because I believed high street lenders would not touch me, When I remortgaged I saw sense and tried Barclays, I was turned down at first but then after speaking to the underwriter and having a chat about my default and previous late mortgage payments I got a mortgage with them for 2% cheaper than the cheapest sub prime saving me thousands, I think the problem was in 2003 I felt so bad and guilty about having a low credit score I just took the easist route, its very difficult discussing why you've not paid some of your bills with a stranger but is a must if you want to save money.

With cards you can quite often get a card if you ring direct and speak to somebody rather than doing it online and get knocked back, I've applied for a fair few in the last few years, not to spend on but to shuffle and I've been mostly successful even with a POOR (according to Experian) rating, they just want the £5.95 so they generate a near meaningless number.

jimbo26

Puma21 wrote: »

No!!!!!!!!!! My advice would be to avoid Capital One!!!
.

Could you pass on your experience which would help the OP to make a choice. I have been with Cap One for about five years. Never had a problem. Their fraud protection is excellent and you get free Equifax Credit Watch