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    • wharty
    • By wharty 16th Apr 18, 2:50 PM
    • 420Posts
    • 640Thanks
    wharty
    Credit building after bankruptcy.
    • #1
    • 16th Apr 18, 2:50 PM
    Credit building after bankruptcy. 16th Apr 18 at 2:50 PM
    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 wifeís 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 wifeís 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.
Page 1
    • zx81
    • By zx81 16th Apr 18, 2:55 PM
    • 18,111 Posts
    • 19,316 Thanks
    zx81
    • #2
    • 16th Apr 18, 2:55 PM
    • #2
    • 16th Apr 18, 2:55 PM
    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
    • By wharty 16th Apr 18, 3:23 PM
    • 420 Posts
    • 640 Thanks
    wharty
    • #3
    • 16th Apr 18, 3:23 PM
    • #3
    • 16th Apr 18, 3:23 PM
    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.
    Originally posted by zx81
    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
    • By wharty 16th Apr 18, 3:25 PM
    • 420 Posts
    • 640 Thanks
    wharty
    • #4
    • 16th Apr 18, 3:25 PM
    • #4
    • 16th Apr 18, 3:25 PM
    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
    • By DCFC79 16th Apr 18, 3:28 PM
    • 32,346 Posts
    • 20,343 Thanks
    DCFC79
    • #5
    • 16th Apr 18, 3:28 PM
    • #5
    • 16th Apr 18, 3:28 PM
    Oh and one more thing. Should we get a contract mobile for my wife with EE or something, again to boost her repayment history?
    Originally posted by wharty
    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.
    • Tarambor
    • By Tarambor 16th Apr 18, 3:33 PM
    • 3,395 Posts
    • 2,480 Thanks
    Tarambor
    • #6
    • 16th Apr 18, 3:33 PM
    • #6
    • 16th Apr 18, 3:33 PM
    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?
    Originally posted by wharty
    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
    • By wharty 16th Apr 18, 3:34 PM
    • 420 Posts
    • 640 Thanks
    wharty
    • #7
    • 16th Apr 18, 3:34 PM
    • #7
    • 16th Apr 18, 3:34 PM
    Does she not already have a mobile ?

    If not then yes consider getting one.
    Originally posted by DCFC79
    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
    • By wharty 16th Apr 18, 3:35 PM
    • 420 Posts
    • 640 Thanks
    wharty
    • #8
    • 16th Apr 18, 3:35 PM
    • #8
    • 16th Apr 18, 3:35 PM
    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?
    Originally posted by Tarambor
    Sounds crazy doesn't it. Simple really, we want a mortgage.
    • Gary_Dexter
    • By Gary_Dexter 16th Apr 18, 3:36 PM
    • 1,776 Posts
    • 1,019 Thanks
    Gary_Dexter
    • #9
    • 16th Apr 18, 3:36 PM
    • #9
    • 16th Apr 18, 3:36 PM
    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.
    • Gary_Dexter
    • By Gary_Dexter 16th Apr 18, 3:38 PM
    • 1,776 Posts
    • 1,019 Thanks
    Gary_Dexter
    Sounds crazy doesn't it. Simple really, we want a mortgage.
    Originally posted by wharty
    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
    • By wharty 16th Apr 18, 3:44 PM
    • 420 Posts
    • 640 Thanks
    wharty
    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?
    Originally posted by Gary_Dexter
    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.
    • cjmillsnun
    • By cjmillsnun 16th Apr 18, 11:09 PM
    • 602 Posts
    • 736 Thanks
    cjmillsnun
    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?
    Originally posted by Tarambor
    I'm guessing he wants a mortgage
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