Applying for a credit card after bankruptcy

motinter
motinter Posts: 76 Forumite
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in Bankruptcy & living with it
I'm looking to rebuild my credit score as fast as possible.

How soon after being discharged can I apply for a credit card (I'm looking at aqua and vanquis)

Is there anything else I need to do after discharge to make the process of applying for one as problem free as possible.
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You can apply for one at any time. Whether you'll be accepted though, will depend their criteria at the time. If delicine, leave it a couple of months.

    Forget about rebuilding your score. It still doesn't mean anything. Just look to build good history by using your credit responsibly.
  • cymruchris
    cymruchris Posts: 5,167 Forumite
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    Have you checked that all of your files in all of the agencies are up to date? If not - do that first - to ensure that all data is recorded accurately. Some lenders have a habit of not updating things properly unless prompted and prodded. Thereafter - try one of the eligibility checkers for Vanquis and Aqua and see what the outcome is before making a full application. You might still then get turned down - even if they said you were likely to be approved - but on doing so - wait a few months before trying again.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • mwarby
    mwarby Posts: 2,048 Forumite
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    Sadly the main things which will drag down your credit worthiness (and somewhat made up score) will be your bankruptcy and the defaults which go with it. Yes you'll get aqua, vanquis and capital one easily enough, but not much more until the 6 year mark.

    Be careful with the poor credit credit cards, yes you can get decent limits eventually, but at high APR. the worst thing you can do is to get into problem debt again

    Why do you want to build your score, do you have a particular aim such as getting a mortgage ?
  • motinter
    motinter Posts: 76 Forumite
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    Yeah, I'm thinking about renting and then mortgages further down the line.

    Those are the main things.

    It will be used purely as a charge card - paying off as soon as I use it.
  • fatbelly
    fatbelly Posts: 20,455 Forumite
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    Make sure you're on the electoral roll

    There are loads of options out there

    https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/

    but use an eligibility checker first

    https://creditcards.moneysavingexpert.com/?bad-credit&_ga=2.20219057.828388249.1569102401-370800224.1507305729
  • iwishidbeenmoresensible
    iwishidbeenmoresensible Posts: 17 Forumite
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    Thought I'd piggyback onto this thread as it's quite relevant to me.

    Been discharged from BR since 26/06/2018. No defaults since going BR in 2017. Credit score (according to Credit Karma) is 555.

    Have one card with Vanquis now with a £500 limit which I've had since 07/2018.

    Have done a pre-search every few months since discharge but am consistently not eligible for any cards. I don't actually need another one, but I would like to know what's causing me to be rejected. I also need to rebuild my credit as quickly as possible as am hoping to buy a house with my partner and whilst I realise my BR will be a problem, I'd like to do all I can to minimise it.

    Any thoughts on why I'm getting rejected?

    Cheers
    Dischared June 2018. Time to rebuid!
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Have look at your three credit files and see what appears on each (not the scores).
  • cymruchris
    cymruchris Posts: 5,167 Forumite
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    iwishidbeenmoresensible wrote: »
    Thought I'd piggyback onto this thread as it's quite relevant to me.

    Been discharged from BR since 26/06/2018. No defaults since going BR in 2017. Credit score (according to Credit Karma) is 555.

    Have one card with Vanquis now with a £500 limit which I've had since 07/2018.

    Have done a pre-search every few months since discharge but am consistently not eligible for any cards. I don't actually need another one, but I would like to know what's causing me to be rejected. I also need to rebuild my credit as quickly as possible as am hoping to buy a house with my partner and whilst I realise my BR will be a problem, I'd like to do all I can to minimise it.

    Any thoughts on why I'm getting rejected?

    Cheers

    Have you tried the eligibility checkers for Aqua or Capital One? They are sub-prime cards that might go your way. It takes time to build up the history before the big names will take you back on....
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • TheGardener
    TheGardener Posts: 3,303 Forumite
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    The best thing you can do now other than a) do a credit file clean up and b) credit builder cards: is to manage your money impeccably - no late payments - ever; a savings accounts with a regular trickle of funds in - it doesn't have to be big - just steady and dependable.
    NEVER make a late payment on CC's or utility bills, NEVER exceed a credit limit and absolutely live within your means.

    If you rent make sure you get an excellent reference from your current LL - NEVER be late paying your rent, accommodation kept in excellent order and neighbours happy to be your neighbours. A good reference is what most LL's want.

    It will take a full 6 years from the date of your BR for your 'score' to improve when the BR drops of your credit history. If you do the above and seek the assistance of a 'whole of market' broker with experience of ex BR's then we have seen posts on this forum from folk who have got a decent mortgage deal after 4 or 5 years. However - we have also seen posts from folk who can't even get a regular bank account after 10 years!! (usually because they didn't do a credit file clean up)
    There are no short cuts or magic tricks - sound financial management is the only way to go :)

    P.S Some people always DID do the above but circumstances or other people may have been the cause of the BR.
  • mwarby
    mwarby Posts: 2,048 Forumite
    First Anniversary Name Dropper First Post
    motinter wrote: »
    Yeah, I'm thinking about renting and then mortgages further down the line.

    Those are the main things.

    It will be used purely as a charge card - paying off as soon as I use it.

    ok for most landlords (perhaps not housing associations etc) the only things they can see is CCJ and insolvency (the public data section on most reports) - managing a credit card here won't make any difference

    for mortgage its about time passed (with no further negative events), size of deposit and affordability. The credit card might conceivably help to show you can manage credit, but the effect will be very very marginal compared to other items

    I'm not saying don't get a credit card, I'm just saying that chasing a better score for next 5 years or so is a bit of a hiding to nothing, compared to living within means and saving for that deposit

    Sorry I've been there, and its hard to accept but the reality is about 90% of lenders (mortage isnt so bad after about 3-4 years) won't want to touch you until the last defaults drops off, those that do charge big rates
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