Credit building after bankruptcy.

wharty
wharty Posts: 426 Forumite
in Credit file & ratings
Hi

Myself and my wife want to build up our credit repayment history and I have recently taken out a capital one credit card that I repay in full every month.

We are now considering a small loan of say 1 or 2k for my wife’s credit repayment history. We are looking at Amigo loans and we are wondering if this would be a bad thing? Would they be classed as a payday lender?

We have 25k in savings so we can pay the debt off anytime we like but we want something on our credit files which at the moment is just a bank account on my wife’s and a bank account, BT and home insurance on mine.

Any thoughts or other ways we can show a repayment history on our files?

Thanks.
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Never take an Amigo or payday loan. Not only does a small short term loan look bad, it will show you don't even have £1k spare to your name so are very high risk.

    You never need to pay interest to build a credit history.

    Get a credit card - anything will do, because you're not going to carry a balance or pay interest - use it regularly and clear in full each month.
  • wharty
    wharty Posts: 426 Forumite
    Deleted_User wrote: »
    Never take an Amigo or payday loan. Not only does a small short term loan look bad, it will show you don't even have £1k spare to your name so are very high risk.

    You never need to pay interest to build a credit history.

    Get a credit card - anything will do, because you're not going to carry a balance or pay interest - use it regularly and clear in full each month.

    Thanks.

    I have been paying the credit card off a few days after it appears on my statement. Do you think I should be waiting for the direct debit to go out automatically to pay off in full, or does it not make any difference?
  • wharty
    wharty Posts: 426 Forumite
    Oh and one more thing. Should we get a contract mobile for my wife with EE or something, again to boost her repayment history?
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    wharty wrote: »
    Oh and one more thing. Should we get a contract mobile for my wife with EE or something, again to boost her repayment history?

    Does she not already have a mobile ?

    If not then yes consider getting one.

    EE maybe aren't the cheapest mind, depends if EE is the best signal wise, if that's the case then consider Virgin Mobile, Plusnet since they and other MVNO's use the EE network.
  • System
    System Posts: 178,092 Community Admin
    Photogenic Name Dropper First Post
    wharty wrote: »
    Thanks.

    I have been paying the credit card off a few days after it appears on my statement. Do you think I should be waiting for the direct debit to go out automatically to pay off in full, or does it not make any difference?

    Wait for the DD to go out, it's pointless paying earlier.

    Question though: Given you were bankrupt, got that over and done with and have £25k of savings why the urgency to up the credit record to get into debt?
  • wharty
    wharty Posts: 426 Forumite
    DCFC79 wrote: »
    Does she not already have a mobile ?

    If not then yes consider getting one.

    Yes she does but we both bought our mobiles with cash and just have a pay monthly sim. We don't want any loans, credit cards or mobile phone contracts but we want a mortgage as soon as possible, so I guess we have to find things to buy to build up our history.

    We have been discharged 4 years and its been great paying for everything outright but we figured a credit card each and a small loan would help.

    Obviously we wont go down the loan route now so just trying to find little things that can go on file.

    Its daft really as there is nothing we need or want.
    Only thing we can do with is a new oven but didn't want to use cash for it, so looked at currys finance which said we are eligible to apply but cant help but think we will be rejected when it goes for the hard search.
  • wharty
    wharty Posts: 426 Forumite
    Tarambor wrote: »
    Wait for the DD to go out, it's pointless paying earlier.

    Question though: Given you were bankrupt, got that over and done with and have £25k of savings why the urgency to up the credit record to get into debt?

    Sounds crazy doesn't it. Simple really, we want a mortgage.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Wait for the Direct Debit - if you pay the transactions before the monthly statement is produced then it looks like the card isn't being used to the CRA's as it will report a zero statement balance every month.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    wharty wrote: »
    Sounds crazy doesn't it. Simple really, we want a mortgage.

    Do you need a new oven then if you're planning to move in a years time?

    Get a cheap one for a couple hundred pounds to see you through until you move?
  • wharty
    wharty Posts: 426 Forumite
    !!! wrote: »
    Do you need a new oven then if you're planning to move in a years time?

    Get a cheap one for a couple hundred pounds to see you through until you move?

    Yes, I get your point though, however we are going to be buying the house we are renting so seems a good investment.

    If it all falls through we can unplug it and put the old one back.
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