Hi Bowershall

First of all congratulations for finishing your TD. Good feeling isn't it?

I was discharged last September and a month later applied for, and was approved for, a Vanquis credit card with a limit of £500. I used it to buy petrol or a grocery shop and paid it of in full. I now have a limit of £2000 and almost a year of rebuilding a good credit history.

Hi Bowershall.

As tinsoldier has said, one of the most common bits of advice for rebuilding your credit record is making use of credit again. That doesn't mean going into debt, a small purchase each month which is cleared in full when the bill arrives (preferably by direct debit to avoid mistakes) is a good starting point. This will not be a good plan for everyone though, and some people simply will not want to have a credit card or use any other kind of credit.

In terms of investing, there is a limited amount that we can say because investment is a regulated area. Most of the advice I have read says that saving an emergency fund is the first priority. Often it's stated that this should amount to something like three to six months salary, or three to six months general expenses, sat in cash in an accessible bank account.

Thanks Tinsoldier. I am still in a state of flux, as the Trustee is not discharged yet, although I do not see any reason to worry.

I thought about a credit card. Does anyone know if a pre paid card would help? I am a little worried about credit cards as the mismanagement of them, was part of my downfall.

Thanks again for the reply.

Thanks TDA. I am not really looking for specific investments. Just general guidelines as you have given.
I did think of some sort of ISA or other saving plan with easy access in case of emergency.

As per my reply to Tinsoldier. I assume that a pre paid card does not count towards building up my credit history.
I only want this rebuilt to be able to have the option of a mortgage or similar in the future.

I understand a pre-paid credit card does count towards your credit rating, though I'm not an expert on this.

Some members have previously mentioned a Cashplus prepaid credit card to which you can add a "Creditbuilder" facility.

I think this involves a very small loan being made to you which is then repaid in very small installments.

I've no idea how effective it is. Hopefully someone that has used one can comment...

Thanks Kevin/TDA

This is exactly the sort of thing I need to look into. I think it is so important to learn from previous mistakes.

Has anyone out there had experience with this "creditbuilder" card?

Congratulations on getting to the end of your trust deed [:D]

The first change for me was at the bank. I had a basic bank account that meant I could only take cash from machines, within a few months of my discharge my bank allowed me a debit card however it took two years before this was again revised and I now have a visa debit card from them.

I also started a credit card with Vanquis about 2 years after discharge. They started with a £200 credit limit which I was careful to pay off in total each month and I now have a credit limit of £3000 which is great if I have an emergency.

I haven't tried to do anything else, like get a mortgage or buy a car, so I have no experience with these things.

Good luck in rebuilding your credit rating.

Hi Bottemlesspurse,

Thanks for your reply.
I will look into the Vanquis card.
I do not need or want a loan or mortgage at present. However, my son is in rented housing and may need a hand to get on the property ladder soon.

Does anyone know any good links to sites advising on building up your credit rating?

Hi Bowershall.

The usual consumer websites (MSE etc) have content on this subject, though of course it's usually generically aimed rather than being specific for those exiting insolvency procedures.

You may also find some useful information on credit reference agency websites, such as Experian, Equifax, or CallCredit.

If you haven't seen it, the following article may be useful:

https://www.trust-deed.co.uk/repair-your-credit-rating.html

I also remember the post about credit builders. If I remember correctly you dong actually get any money, it is more of a paper exercise. As for savings , I have never been in a trust deed, and still don't have 6 months salary in the bank. I know it's what they say, but don't think I will ever get there, so probably the wrong person to ask!!

Smaller,easier to get accepted for credit all help,mobile phone contracts,catalogues,and credit at furniture shops like dfs etc can all paint a prettier picture on the old credit files.

Just started using vanquis myself and have to say I am quite impressed.

Paul

Thanks to all for the helpful advice.
I found the Cashplush card with credit builder option interesting. Also the Littlewoods catalogue and mobile phone contracts are worth looking into.
I am going to get a new mobile from from my employer. This means I no longer need a personal contract phone.

I have a joint mortgage with my wife. It has always been paid in full and on time. She had problems getting a mobile phone contract from CPW. (She ended up getting one from Tesco Mobile). We think this was because of a credit file link to me. Will this change once my discharge and defaults are corrected on my file?

Paul, out of interest why are you awaiting the trustee's discharge after 6 months? PPI?

Hi Bowershall.

The credit file link will remain, but should be less of a problem over time.

Some lenders may not be very interested in it now, every lender looks at things differently.