When should I apply? Credit rating related

inavacuum

I'm currently in the midst of sorting out debt issues. I'm on a plan with the CCCS to repay my Barclay's loan and this will be finished by the end of the year. I have already cleared off and cancelled my Barclay's and Mint credit cards. I plan to, at some point, apply for an Egg Money card (I've already budgeted it so that I know I'll be able to pay off the balance in full each month). However, how long should I wait, or what should I do before I do this? Obviously if I've used the CCCS to help me with my Barclay's loan then my credit rating will no doubt be very poor. What's the best way to get back in favour once a period of debt problems has passed?

vwman_3

inavacuum wrote: »

I'm currently in the midst of sorting out debt issues. I'm on a plan with the CCCS to repay my Barclay's loan and this will be finished by the end of the year. I have already cleared off and cancelled my Barclay's and Mint credit cards. I plan to, at some point, apply for an Egg Money card (I've already budgeted it so that I know I'll be able to pay off the balance in full each month). However, how long should I wait, or what should I do before I do this? Obviously if I've used the CCCS to help me with my Barclay's loan then my credit rating will no doubt be very poor. What's the best way to get back in favour once a period of debt problems has passed?

First things first, before applying for any form of credit, I would suggest in view of what you have said in your post, is to get hold of copies of your credit files from the 3 CRA's.

I would imagine that they will not make very good reading and if that is true you dont need to add to the problem by making further credit searches, which in all probability will be refused.

dhassen

looks like you should forget Egg Money, and (if you credit file doesn't look tooooo awful) apply for a credit building card, use that for a year, then go for a more 'premium' card like Egg Money

inavacuum

Ok, that sounds fine. I'm happy just using my debit card, I just wished to switch to a cashback card ASAP for the obvious benefits. I shall obtain my credit files and if necessary check again in 12-24 months time.

jimbo26

inavacuum. I have been in exactly the same position as you.

If you have defaults of negative info on your credit file you will be very limited to which card you can obtain.

In my particular case I didn't default on everything and in fact kept paying a mortgage store cards and a next catalogue, so I did have some positive stuff on my file.

After a few years (3 I think) I applied for a Capital One card and was accepted I then used that to further build a good credit history. In January this year my final default fell off. I spent about three months tidying up my file, closing old accounts having in correct data removed etc. before applying for a new card.

In April I applied for three cards and a new current account, got accepted for all, including an Egg Money card with the 7.9% APR rate.

There is light at the end of the tunnel however there is no magic wand. Patience and discipline is what will help you get a better card/product.