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Credit card after TD

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(@worriedme)
Trusted Member
Joined: 14 years ago
Posts: 87
Topic starter  

Happy 2016 everyone. I am one year post completion of TD and made my first application for a Credit Card to try to rebuild my credit history. I am pleased to say I was successful in securing a card with Capital One. I applied after doing a search on Moneysupermarket who give you an idea of the likelihood of acceptance. Surprisingly they have offered a credit limit of ยฃ1500 which seems a bit high given my history!! I intend to use the card for fuel and will pay it off in full each month.
To all those still going through your TD, stay strong and positive - there is light at the end of the tunnel and it is most definitely a journey worth continuing.....

worriedme


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Thanks for sharing that worriedme - and good for you.

This type of thing is certainly often of concern to people tackling their debts for the first time or who are part way through a debt solution.

Good for people to be able to read a real account of how things can return to normal again over time.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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David Tannock
(@david-tannock)
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Joined: 12 years ago
Posts: 2581
 

Hi worriedme,

Thanks for taking the time to post about your success in obtaining a credit card 1 year post Trust Deed and well done on obtaining the credit card.

Posts like this give people who are just starting out on the journey or mid-way through the reassurance that there is life after a Trust Deed.

As advisors we tell people this all the time but hearing it from someone who has actually been on the Trust Deed journey themselves will reassure them more.

I always say that if set up correctly a Trust Deed can provide the debt relief it was designed for.

David is not currently posting in the Trust-Deed.co.uk forum


   
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(@paul69uk)
Active Member
Joined: 15 years ago
Posts: 6
 

Hi worried me,

I applied for credit cards just after I was discharged, and in 2 years after discharge I've been accepted for 5. In the chronoligical order: Vanquis, Aqua, Capital One, Barclaycard Platinum and Tesco Clubcard Credit Card.

All in the green all of the time, so hopefully working in my favour!

So it is worth a try everyone as long as they are not maxed out, of course!

Paul


   
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David Tannock
(@david-tannock)
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Joined: 12 years ago
Posts: 2581
 

Hi paul69uk,

That's really positive and encouraging to hear that you have been able to secure credit with the mainstream lenders.

Feeding back information like this not only helps other people who have completed Trust Deed's and are concerned about their future credit prospects but it also assists me as an advisor as I can tell people when I'm advising them at the start on the implications and how likely it is they will be able to secure credit in the future. Normally when I'm finished with a client I don't hear from them again so the forum is an extremely useful tool for me as well so thanks for sharing this information.

Good to hear that none of the cards are in the red!

David is not currently posting in the Trust-Deed.co.uk forum


   
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(@paul69uk)
Active Member
Joined: 15 years ago
Posts: 6
 

David,

No problem. My advice is to apply sensibly and in stages, such as I have done. I have been declined many times, but tried again in a few months time.

Hopefully when my TD is erased from credit file in the second half of this year, all records will be green as green, green grass.

I was also seeking commercial mortgage a three months ago (so just after 2 years of discharge), and I was upfront with the bank that I had TD and so on. They did not reject my request and said it was possible for me to get a mortgage, all depending on my business accounts (I had 25% deposit). In the end I struck a private deal with the vendor without the bank involvement, so did not apply formally for the mortgage.

So, there you go. If you don't try you don't get.

Cheers,

Paul


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Do you still have all five credit cards paul69uk?

I know that when people have significant existing credit streams open to them (even if largely unused) it can affect the willingness of new lenders to offer further credit.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@paul69uk)
Active Member
Joined: 15 years ago
Posts: 6
 

Hi TDA. Yes, I do and I am aware of what you are saying. I manage them responsibly, and actually am about to ditch Vanquis and possibly Aqua as well.

As a matter of fact, once I got accepted, all the providers raised credit limits pretty quickly. Actually, I find their attitude to extending credit pretty relaxed. I don;t want to dwell into numbers, but one of them doubled the credit limit in 6 months since account opening.


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

I think you're doing the right thing paul69uk.

Moving on from sub-prime cards to more mainstream arrangements over time makes good sense, as does not retaining credit sources that you don't need.

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@plasticdaft)
Noble Member
Joined: 16 years ago
Posts: 1594
 

I used vanquis to get started then applied for a mainstream card from my bank (nationwide). Vanquis was great throughout.

Paul

Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.


   
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(@porcupine)
Estimable Member
Joined: 15 years ago
Posts: 206
 

It'll be three years this May since my trust deed finished, to be honest to b honest I've never bothered applying for credit or credit card since my PTD was completed..... I am lucky that I have been able to build up decent amount of savings over the last three years, so if I need anything I'll simply pay cash for it......

But am wondering if people on here think I should apply for a credit card to start building up some sort of credit history or should I just continue as I am ?


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi there Porcupine.

Do you anticipate a need to use credit of some type in the future?

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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(@plasticdaft)
Noble Member
Joined: 16 years ago
Posts: 1594
 

I knew that at some point I'd want a car loan so that was my main reason for getting the credit card and rebuilding my rating.

Paul

Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.


   
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(@porcupine)
Estimable Member
Joined: 15 years ago
Posts: 206
 

quote:


Originally posted by TDA (Debt Adviser)
[br]Hi there Porcupine.

Do you anticipate a need to use credit of some type in the future?


To be honest no, barring a major disaster there is nothing I'd need to purchase at this current time or in the foreseeable future I'd require credit for......

So I kinda think in reality the best answer is, just continue as you are.....


   
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David Tannock
(@david-tannock)
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Joined: 12 years ago
Posts: 2581
 

Hi Porcupine,

I think it can be a good thing having available credit should you need this. You just don't know what the future holds and it could be the case that you may need credit when you never thought you would.

I think applying for a credit card and using is sensibly which it sounds like you would has no real downside for you. You will ensure that you build up your credit should you ever need this in the future.

Things like car loans, mortgages or re-mortgaging it's all useful to have a good credit report for.

Maybe something to think about. Right now you can't see you ever having a need for it but this could change.

David is not currently posting in the Trust-Deed.co.uk forum


   
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