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PostPosted: Tue Dec 11, 2012 4:33 pm 
Old School Grand Master
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Location: The land of Lea & Perrins
greenstiles wrote:
In the meantime, get catalogues and high interest credit cards and use them like once a year and pay off the items as soon as you have it.

This will start to give you a healthy credit rating again REMEMBER no credit rating is a BAD credit rating.....they want to see you can borrow and pay back over a period of time.


That's exactly what we're doing at the moment..! Great minds and all that ;)

My girlfriend has a store card (Next) and a credit card (Vanquis). I've got 2 credit cards (Vanquis/Aqua) and I'm applying for a third.

The balance on all of these is minimal, with us making one-off purchases using them and then paying the full amount back at the end of each month when we get paid, thus avoiding any interest being charged :D

Hopefully this should start to go some way towards improving things...


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PostPosted: Tue Dec 11, 2012 5:21 pm 
Gold Trader / PoTM Winner
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Barneyballbags wrote:
and a credit card (Vanquis)....



Interested in your thoughts on this....

I had (in the past) bad debt, and some (whish is less now and getting better) debt that I am repaying (student loans from up to 15years ago) and with the new wife we are saving for our deposit now... hopefully we can get £20k in 18months, however my credit worries me.

I get letters from Vanquis offering me credit cards, but to honest I thought they were scam/junk, so just bin them with the pizza menu's! Also put off the massive %APR that the letters indicated

Never had a CCard so not even bothered looking into how they work... is it really the case that even with the Vanquis cards, total monthly balance repayments dont incur and % charges (so £60 spent at the shop will still only cost £60 at the end of the month)?

G


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PostPosted: Tue Dec 11, 2012 6:31 pm 
retrobike rider / Gold Trader
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Wouldn't bother with any mortgage you might be able to get at the moment as with the problems you've mentioned and only a 5% deposit you'll end up paying more a month then you do now. Also as you'll know, the housing market's flat so no huge gains to be made by having your own.


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PostPosted: Tue Dec 11, 2012 6:45 pm 
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unkleGsif wrote:
Barneyballbags wrote:
and a credit card (Vanquis)....



Interested in your thoughts on this....

I had (in the past) bad debt, and some (whish is less now and getting better) debt that I am repaying (student loans from up to 15years ago) and with the new wife we are saving for our deposit now... hopefully we can get £20k in 18months, however my credit worries me.

I get letters from Vanquis offering me credit cards, but to honest I thought they were scam/junk, so just bin them with the pizza menu's! Also put off the massive %APR that the letters indicated

Never had a CCard so not even bothered looking into how they work... is it really the case that even with the Vanquis cards, total monthly balance repayments dont incur and % charges (so £60 spent at the shop will still only cost £60 at the end of the month)?

G


You don't pay any interest if you pay your balance in full each month, which is what I do as I only put small or one-off amounts on the card which I know I can afford to pay at the end of each month.

For example, where I used to buy something and pay for it using my debit card, I now pay for it with my credit card. I can then pay my credit card off at the end of the month (or even a few days after) using my debit card. I can log into my account online and make the payment that way.

I've also set up a direct debit for the minimum amount each month, so that even if I forget/fail to pay my balance in full, I don't miss a minimum repayment and my credit rating keeps on improving slowly but surely. Obviously if my credit card balance is zero, then I don't pay anything via direct debit.

The APR on "credit repair" credit cards is pretty horrendous (Vanquis is 39.9% and Aqua is 42.9%!) but so long as you are responsible (and believe me after the last 10 years of my life dragging myself out of the debt pit, I am!), and you only use the card for small or one-off payments which you KNOW you can afford to repay each month, then you don't pay interest anyway, and you can't go far wrong. They are by far and away one of the best ways to repair your credit rating.

The more you use the card(s) the better - if you can build a record of repaying on time then it will benefit you. :D


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PostPosted: Tue Dec 11, 2012 7:04 pm 
retrobike rider
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Don't bother with the credit card if you can. Your credit rating is calculated not only on you getting into debt and paying it off, but managing your finances. Not going overdrawn, etc. Make sure you're on the electoral role too. I bought my flat in 2004 when 25. I didn't have a credit card, not had one since uni, where I learnt my lesson. I have just sold it, and complete on Friday. :D


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PostPosted: Wed Dec 12, 2012 9:39 am 
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Pyro Tim wrote:
Don't bother with the credit card if you can. Your credit rating is calculated not only on you getting into debt and paying it off, but managing your finances. Not going overdrawn, etc. Make sure you're on the electoral role too.


I don't have an overdraft facility on my bank account, so I never go overdrawn, and I've been on the electoral role for the past 3-4 years. Credit cards are the only option available to me at the moment as my credit rating is still very poor, owing to me being stupid and reckless when I was younger, and borrowing far more that I could ever afford to pay back (I quickly learned afterwards that having the money in my account on payday doesn't necessarily mean I can afford something!!).

Credit cards are a great way (for me personally) to rebuild my credit rating. The only other options available to me at the moment are high interest short-term loans (ie. Pounds to Pocket 12 month loans), or super high interest payday loans (ie. Wonga) - neither of which I want to pursue!

I did try to get a consolidation loan from my bank a couple of months ago, in order to pay off the remainder of my debts ( less than £1500 now :) ) but they won't touch me with a bargepole, even though I've banked with them for 4 years and haven't gone overdrawn once, AND I've been putting a regular monthly wage in there since I opened the account.


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PostPosted: Wed Dec 12, 2012 10:16 am 
Gold Trader / PoTM Winner
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Ok, thanks dude.....

Will have to look into it



G


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PostPosted: Wed Dec 12, 2012 1:25 pm 
Gold Trader / MacRetro rider
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greenstiles wrote:
My advice to you would be..........while waiting for the 7 years to be up, find the cheapest 'private' landlord you can, with a small place, and save every £1.00 you can till the 7 years is up.

In the meantime, get catalogues and high interest credit cards and use them like once a year and pay off the items as soon as you have it.

This will start to give you a healthy credit rating again REMEMBER no credit rating is a BAD credit rating.....they want to see you can borrow and pay back over a period of time.


This is good advice albeit it is 6 years for adverse credit to fall off of your credit report (for most lenders). At 95% you need to be squeaky clean and have an excellent credit rating, tough times for FTB these days banks are not really engaging with this issue but then again when did they ever step up to the plate?


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PostPosted: Wed Dec 12, 2012 1:37 pm 
Karma Queen / Cake Meisterin
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Barneyballbags wrote:
Pyro Tim wrote:
Don't bother with the credit card if you can. Your credit rating is calculated not only on you getting into debt and paying it off, but managing your finances. Not going overdrawn, etc. Make sure you're on the electoral role too.


I don't have an overdraft facility on my bank account, so I never go overdrawn, and I've been on the electoral role for the past 3-4 years. Credit cards are the only option available to me at the moment as my credit rating is still very poor, owing to me being stupid and reckless when I was younger, and borrowing far more that I could ever afford to pay back (I quickly learned afterwards that having the money in my account on payday doesn't necessarily mean I can afford something!!).

Credit cards are a great way (for me personally) to rebuild my credit rating. The only other options available to me at the moment are high interest short-term loans (ie. Pounds to Pocket 12 month loans), or super high interest payday loans (ie. Wonga) - neither of which I want to pursue!

I did try to get a consolidation loan from my bank a couple of months ago, in order to pay off the remainder of my debts ( less than £1500 now :) ) but they won't touch me with a bargepole, even though I've banked with them for 4 years and haven't gone overdrawn once, AND I've been putting a regular monthly wage in there since I opened the account.


Never use payday loans to improve your credit rating, according to Money Box Live they destroy it as they are telling any perspective lender that you cannot cope with money, especially if your trying to get a mortgage

Alison


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PostPosted: Wed Dec 12, 2012 8:42 pm 
Gold Trader / MacRetro rider
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Alison's right, steer clear.


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