Hi Stirling

Good feeling eh? Well done.

I got approved for a Vanquis credit card before I was discharged. High interest but if you use it wisely its great to rebuild credit.

Thanks for your reply. A very good feeling!

So your application didn't impact at all on your TD? Did you use it before you were discharged?

Hi

I applied after I had made my last payment and cancelled my direct debit.

Welcome to the forum Stirling.

I'm not sure using credit prior to your discharge will bring much benefit to your credit rating.

There's also an enhanced risk of your application being rejected, which could be counterproductive later.

Well done on reaching the final stages by the way.

Thanks for your reply TDA.

TDA surely if credit is used wisely i.e. A small purchase every month then clearing the balance won't harm a rating even before discharge? There are no rules preventing taking out credit even whilst in a TD?

I doubt there would be much harm or benefit.

The benefit would be beginning to establish a more positive credit history.

Congratulations on reaching the end of your Trust Deed.
I can see how both ccomments are valid.

If you apply now, your record will show undischarged and you may be refused. That refusal is likely to be shown on your credit reference file, which may influence a future application adversely.

In my own case, I applied for a Next account 3 months after discharge.
I used a small amount and paid it every month or paid a large proportion each month. I never made minimum payment. My credit limit was increased and I requested it was brought back down.

After 2 years I applied for a high interest Credit builder card (Aqua) and was accepted. The limit was slowly increased and again I paid all or most. Very recently, I chose to make a large purchase on the card. That had an impact on my credit rating. It showed that I was close to the limit. I paid two third off at once, and the credit report changed again.

My credit reference files show a full 'green' payment record.

All Trust Deeds and defaults dr#8203;opped off in Feb this year, so I applied for a transfer balance and purchase Interest Free card and was accepted for a high limit which I reduced.

I will cancel the high interest card so my record does not show a high allocation of credit (which can affect future lending decisions).

I am sharing all this with you to show that in my case, judging the timing of introducing new credit and carefully managing spend and repayment, by the end of the six year period, I have no defaults showing and I have a modest credit card with no and low interest rate.

It does take self discipline and a strategy that should ensure you can pay all / high proportion of the balance each month.

No-one can tell you how any company will look at your credit file and application. I would bear in mind that lenders look at a combination of criteria. And that might include applying for credit while not discharged from a Trust Deed.

Good luck in rebuilding your record longer term. It seemed important to me at the time (as it is to you just now). Retrospectively, it was not so urgent.

Hope that helps in some way.

Thank you Firewalker, your reply was really helpful. Thanks again.

There are tools online which do "soft searches" of products and this does not leave a footprint on your credit file. Might be an option.

For me, the key point was when my credit file was tidied up to say the defaults were "settled" or "partially satisfied". At that point I had an email from one of the card suppliers, saying I could do a "soft search" and I was accepted and now have a credit card. It's not one of the high rate ones either which was a surprise but a pleasant one.

It does seem to be different for everyone, but that's it from my perspective.