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  • #1

    Credit Rebuild Question!

    Hi All,

    Long time no see

    If you've been following my diary thread, I recently was accepted for a Vanquis Credit Card as part of my Rebuilding Credit Rating.

    I've been using it, but very VERY VERY carefully.

    Vanquis send out a sheet to show you how they review your credit usage and improve your credit limit and credit rating every three months.

    However I have a question. A while back, an insolvency specialist that I met with advised me:
    "When out of your bankruptcy, and you have a credit card again ... remember to keep a balance on the card for more than one month."

    She went on to explain:
    "If you spend £200 on it, and then pay it off in full, then you're not using the credit facility. It's better to spend £200, pay a smaller amount first month and then if you wish, clear it the following month."

    Is this correct? Should I be seen to be using the credit facility ... as Paying in full will just hide my usage of the card?

    TIA
    "Cheap is good, but FREE is better!"
    Tags: account, bankruptcy, card, cra, credit, credit card, credit rating, creditors, debit, debit card, debt, direct debit, extra, insolvency, monthly, paid, pay, people, rating, rebuilding credit, review
  • #2
    Re: Credit Rebuild Question!

    hiya,
    Yes is the answer to that one mate. Nid recently cleared that one up for me - also on Granite here.
    So what i did is change my direct debit to minimum payment and then log in the next day and pay more using a debit card.
    Happy days!
    When Gold isn't enough, there is SA Gold! New to the forum and find the UE route a bit scary? Take a look at my diary here and judge for yourself. I am now saving the money each month that was making little difference to the balance and not a bit of difference to my credit file as a result of finding AAD.


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    • #3
      Re: Credit Rebuild Question!

      I did indeed answer it - full quote:

      Originally posted by Never-In-Doubt View Post
      That's not always best, I did say pay off more than the minimum - not pay in full.

      Paying in full is not actually a good thing to creditors, bet you never expected that! it shows no risk level and pretty much negates any positives you build up from paying monthly. I tend to say set up a DD for the minimum payment then each month after your payment has been paid via DD, simply pay extra to lower the balance - this works better and also reports at the CRA that you paid MORE than the required amount. Paying in full shows the CRA that the balance is £0 - so other people searching you may think it is a dormant account and not being used.

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      • #4
        Re: Credit Rebuild Question!

        Just been accepted for some Granite so thanks for the info here, really useful. Tierisch

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