Credit advice

Posted 28th Sep
hi guys
well..... few years ago I didnt have a great credit history, I've worked hard paying back my debts , an combined all debts an paid each an every month. I'm out if debt now but I'm having trouble being accepted for a credit card. I'm not wanting a huge amount of credit maybe a hundred to two hundred at the very most. I don't understand how all this works. I paid back everything i owed , which I am proud of doing. I took responsibility for my actions an got out of the mess I'd got myself into. So can someone explain to me why an how this works. Does this stay with me forever an I will never be able to get accepted for credit again ?!?
I can't even get a Mobile phone monthly contract!!! As when they run your credit history I was refused !! I only finished paying back my debts in May this year. I did have County Court judgements against my name due to my debts. An ended up in alot more debt with extra interest added on my debt etc. It took nearly 4 years but I paid everything I owed. Have I damaged future credit for myself ?? Will I ever be able an trusted to have credit, be accepted for credit again ?? I thought once I paid back all my debts, then I'd have a clean slate, a fresh start ! Has anyone else been in this situation ?? Does anyone know how this situation works ?? Any advice/help would be greatly appreciated by me !!
Thanks x
Community Updates
Some of these things can take 6 years to come off your records, however have you tried some of the poor debt cards, ones like Aqua and Capital One usually guarantee a low credit limit. Spend a little on them each month and pay it off in full, then try to get mobile contracts. Credit will come back, however some of the companies may have blacklisted you, for example if you had a card with Tesco that you defaulted on, Tesco may not take you on again as a customer, good credit or not.
Google says upto seven years. Check your credit score before applying. You can get a few sim only without credit checks now. Just search SIM only no credit check or bank card no credit check etc
Have you checked to see what's on your credit file? That will give you an idea of what the issue is. If you've had CCJs it will take time to repair your credit history and build up a decent credit score.
Second the capital one route. But you MUST pay it each month, at least a week before its due date as it takes several days to be credited to your account, then your credit rating will steadily improve. Don't apply for any more credit from anywhere, just get the one easy card and use that (each time you apply for credit it gets recorded on your credit file and a refusal is very bad for your rating).
Try and avoid the very high rate companies and 'pay day' loans companies - you'll soon find your ratings improve. Capital one will watch you to see how you pay and soon enough they will raise your limit - this is a boost to your rating and self esteem. If you don't need to use a credit card one month - is it anyway, then in a few days pay it off or what you have used anyway. Credit card companies like to see you using them even if you pay it off.
But most important, stop applying for any credit other than Capital One (or the like).
From memory Starling Bank dont do a credit check unless you apply for an overdraft.

No credit check sims.…ls/
aircanman28/09/2019 15:32

Some of these things can take 6 years to come off your records,

Everything stays on your records for 6 years, what varies is how much the passage of time helps reduce the effects.

CCJs are the biggie and will massively restrict what credit you can get until they drop off your file, defaults are almost as bad.

The negative effect of missed payments (which don't result in defaults) does ease over time, if you've have a spotless credit record for say 3 years after your last missed payments some of the more mainstream lenders (ie not those who specialise in people with poor a credit history like Aqua or Capital One) will consider you.

If any of your debts were on a payment plan or you had a Debt Management this will also have a negative effect but again as time passes the effect lessons.

Other factors:
-Lenders like evidence of stability so moving house a lot, regularly changing jobs or switching current accounts will count against you.
-Being on the voters roll is a must.
-Lots of searches on your file look very bad on the credit report and will virtually guarantee you won't get accepted for any credit. To be safe I would never make more than 2 applications in 1 month or more than 3 in 3 months.

MR112328/09/2019 15:55

Google says upto seven years.

Never heard that before. I got into serious problems with debt and each of my defaults dropped of my credit report after 6 years had passed.

OP - first thing to do is request a statutory credit report from both Experian and Equifax and look at the months of the your last CCJ, last default etc.

When I was approaching the end of my Debt Management Plan I wanted a credit card to start building some positive credit history, Aqua and Capital One both rejected me but Vanquis accepted my application.
Edited by: "spoo" 28th Sep
Thanks everyone for your help really appreciate it guys !!!!
Depends what you did to become debt free and how many missed/late payments you had. Good news is it will get better. There are lots of things you can do to make your chances better, .i.e ensure you are on the electoral roll, don’t keep moving address if your renting etc
Your current bank will likely just use your own bank as internal credit check if applying for a overdraft and that’s probably better option, or Paypal is usually easy for PayPal credit.
I'm lucky I've never been in a serious debt situation, but what is so important that after four years you now want or need a credit card.
The problem is all you have is the poor credit history. Even if your debts have been paid. You need to improve it.
You need to apply for a "bad" credit card. Then actually use it. But obviously pay it all back in full monthly. Just use it occasionally whilst out shopping for little things. Set up a direct debit to pay the full amount off monthly automatically. This will give you a new point of reference. And it will show that you are paying your credit back in full on time. It will take about a year or so before you see an improvement (companies willing to offer you credit) and a few years to be at a sort of clean slate stage. But it will eventually improve. But you need to start showing that you can pay back what you owe on time. Bit of a chicken and egg situation really.

Vanquis is probably a good bet for acceptance. But remember, resist the temptation to actually borrow. Be very careful. You've done very well to get out of the mess. Buy what you know you can pay off at the end of the month. All you're trying to do is rebuild your credit history. And bad credit cards have terrible rates.
Edited by: "ra786" 29th Sep
hubcms28/09/2019 20:37

I'm lucky I've never been in a serious debt situation, but what is so …I'm lucky I've never been in a serious debt situation, but what is so important that after four years you now want or need a credit card.

Having a bad credit score excludes one from lots of things. Like the poster said, even just getting a mobile phone contract becomes difficult. Applying for loans for home improvements. Having a safety net for emergencies. Just general stuff.

It's possible to not have to worry about these things. But everyone's situation is different.
Edited by: "ra786" 29th Sep
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