Notifications
Clear all
Scottish Trust Deed Forum
4
Posts
2
Users
0
Reactions
2,963
Views
Topic starter
02/09/2015 5:53 pm
In October this year my TD and all associated accounts should finally disappear from my shameful credit files. I was wondering if people could recommend any providers of personal loans or credit cards that I can try in an attempt to re-build my credit. I'm in the ludicrous situation (that I'm sure some of you are familiar with) whereupon I need to be using credit in order to obtain more! It's ridiculous.
I hope to get a mortgage as soon as possible so I need to re-build my record. I did manage to get a Vanquis credit card a few months ago but I have been appalled to learn that since I have been paying the little amount I have used off in full every month, it has been effectively useless! Apparently for it to have a positive impact on my credit score I would need to use more of the credit available to me and, according to many things I have read, it would be looked on more favourably by prospective lenders if I was only paying the minimum each month!
Anyway, can anyone recommend lenders they have had success with after the magic six years?
02/09/2015 6:30 pm
Hi jc22.
I'm not sure that I agree with this analysis regarding Vanquis.
Different lenders will read different things into the way that you use any credit lines that you have open to you. One lender might dislike you only using a small amount of credit each month. Another lender might disqualify you for having a significant balance on an expensive credit card.
A responsible repayment record with a sub-prime card provider is likely to make it easier to get a near-prime or prime card in the future.
A responsible repayment record with a prime credit card is likely to appeal to most types of lenders.
I guess it's a ladder that you can climb over time (the way that I see it).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
03/09/2015 1:16 pm
Well my experience contradicts this. Recently I noticed that my credit score was dropping due to the negative factor of my credit card limit being so low at 500. Because they were only willing to offer me a small limit apparently this reduces my score. When I rang Vanquis to ask if it was possible to extend my limit (in light of the lower limit negatively impacting my score) I was told that I wasn't using enough of the credit available to me! Since opening the account I have been using approximately 100-150 per month which is paid in full the next month. According to Vanquis they will not consider someone for an increase in credit unless they are using more than 50% of their current limit on a regular basis. In other words, to borrow more you need to use more! A quite ridiculous situation for someone in my position.
03/09/2015 2:27 pm
Hi again jc22.
These "credit scores" really don't mean much. They're just a guess by the credit reference agency of how a lender would view you. To be honest, they seem to be a way to sell credit reports also.
In reality actual lenders don't look at this score. They create their own score using the detail on your credit report plus the details on a credit application that you make.
So one lender might like it that you don't use much credit on what would otherwise be a very expensive credit card. Meanwhile another lender might consider it inappropriate to offer you further credit that you apparently don't need.
I think Vanquis's position is understandable given that you apparently don't need further credit according to the information that they have?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
