Hi nells99.

A prepaid card might help to rebuild your credit rating if you use one of the cards with a credit builder function. One of them (Clearcash) is now described on our bank accounts page:

(Link updated 2020: https://www.trust-deed.co.uk/bank-accounts.html).

I guess it should be seen as just one thing out of many that you can do to start improving your credit rating over time though.

It's quite possible that you'll be asked to provide some documentation when your trustee approaches the point of discharging you.

Hi TDA

merry xmas 🙂

thank you for the information,

Hi Nells99, I got a pre-paid visa card from Orange a few months ago without any problems (I am an existing customer though, don't know if that made any difference) - and my TD is still active.

That is good to know. I didn't know orange did credit cards!

hi jengis3006

once my TD is finished im going to look at what pre paid credit card i can get this will also help me purchase only what i can afford this time !!!

nells99

I don't think there is any problem with getting a prepaid credit card during or after trust deeds. No credit is generally offered so I cannot see any reason to refuse an application based on credit status.

There are a few prepaid cards which offer "credit building" functions as well. I think this is a very small loan when you take the card that is then repaid at £1 per month for a year. After a trust deed has finished this, along with other actions, may help to start improving your credit rating.

I would recommend the vanquis card. High interest rates make sure you wont be tempted to overspend. Managed online with text reminders of balance and payment due dates its really quite good. Pay it off in full and it costs nothing to get lots of green ticks on your credit file.

Careful of fees with pre paid credit cards as some companies charge when you load the cards and when you take cash out!! Use a comparison site to help you choose.

Paul

Paul

Well that's a credit card rather than a prepaid card.

A good option for some though others will wish to stay clear.

Prepaid card fees do vary quite a bit.

I am actually finding using the vanquis card a bit of a rehabilitation process,whilst it gives me a good tick on the credit file,controlling what I do with it is possibly the last part of the "in a big debt hole" situation.

I can understand why many would want to avoid credit ever again but in my opinion thats almost like admitting you havent learned from past mistakes. I want a car loan,I want a sofa on credit etc etc,but I want to be in control of it,not the other way round where my debts controlled me.

I got my 1st credit card when I was 20,I am double that now and hope that I have taken on board the lessons learned throughout not only my trust deed but the ten to 12 years before that where I really though I was doing well with our finances.

Paul

i doubt you will get a vanquis card while in a trust deed, pre paid ones seem a good idea though i might try one

We have heard from plenty of people that have been able to get a Vanquis card pretty soon after they have been discharged from a trust deed.

For obvious reasons any credit card provider is highly unlikely to want to offer a credit card to someone that is still in a trust deed. As no allowance will be made to fund repayments by the trustee this could easily be construed to be a very clear example of irresponsible lending.

3 months after I was released from my trust deed my bank RBS gave me a Standard Credit Card. I opened an account with them at the start of my trust deed and for the duration of my TD I made sure that account was in order. I applied not expecting it to go through, however they gave me one and 3x more then normal entry level credit limit. I guess if you don't owe money to your bank, have no other credit agreements and kept that account in order then they may take a chance on you.

By the way 1 month later and my Credit score went up as well and I am guessing as a reult of someone having faith in lending to me.