www.iva.co.uk

So I've paid all 60 payments (in June), Pay Plan have had a meeting etc but I am still awaiting my certificate of completion.

Unfortunately I have to go to India in a couple of weeks for business and really want to have a credit card in my back pocket for emergencies, hotels, flights etc etc and all those other things where a debit card just isn't enough. I was hoping to wait until I had received the certificate of completion and any savings I'd built up had started to help my credit rating, but alas life doesn't work out that easy.

So, any advice on who to approach for a credit card?

Thank you

I think that you will struggle to get a credit card when your IVA will still appear on your credit file - they do not get removed until six years from the date of your creditors meeting.

Hi Melanie,

Thanks for your response and I do value your opinion.

I've been on MoneySupermarket and it shows the Barclaycard Initial as good for poor credit ratings. They also list Capitol One but since I owed them going into my IVA I doubt they'll be too pleased to see me again.

Would it be a waste of time and just put another search on my credit file or is it worth having a try and see if Barclaycard or Capital One are feeling generous today?

Thank you

It may be worth looking into a prepaid credit card?
You can put money into it whenever you want and it works just like a normal credit card.

Thanks

I also think the Vanquis card is friendly towards people with poor credit ratings - so that might be worth a try.

I cannot say whether it is a good idea to apply. Personally I would steer clear of temptation for a while, but on the other hand a credit card is useful if kept just for emergencies.

Melanie,

Believe me, I learnt my lesson when it comes to credit, this is for emergencies and hotel stays only. I think I'll give the Barclaycard and the Vanquis a go this afternoon, the worst they can do is laugh!

On the prepaid credit card point, one of the great advantages associated with it is that you wont get into debt from it.

MelanieGiles wrote:

I also think the Vanquis card is friendly towards people with poor credit ratings - so that might be worth a try.

I cannot say whether it is a good idea to apply. Personally I would steer clear of temptation for a while, but on the other hand a credit card is useful if kept just for emergencies.

I think there is a big difference between a poor rating and a file that shows an IVA though!!

I think that Declan means a pre-paid cash card. A pre-paid credit card kind of defeats the object, and a pre-paid cash card is merely another way of paying outright with your own money.

My Apologies, Melanie is correct, they are in fact prepaid cash cards. Mastercard in association with carious credit card companies offer this product. Money Saving Expert has a section on them.
Since they carry the Mastercard logo they can be used just like any normal credit card. My feeling is that this is much better to use (there are no credit checks) then applying for a credit card.

Thanks

Secure Trust Bank do a very good current account with a pre-paid cash card and savings account linked to it - the only downside is a £12.50 per month fee.

there are a couple of ways you could start building credit, you could get a small personal loan which you might need a cosigner or the best way will be getting a credit cards, you could get a credit card and use it for your every day expenses but make sure you pay in full at the end of the month that way it will show pay in full everytime the credit card company reports to the credit beuros. At the begining you will only be approved for the lower end credit cards but once you build credit in about 6-9 months you should be able to apply for a better card with better benefits such as free miles or cash back. Check out *link deleted* and go under bad or no credit section and you will find a few choices

Well to bring you upto date, Barclaycard said no, Capital One said no, but Vanquish sent me a shiny blue Visa card with a £250 limit and a massive interest rate, buts I'm not complaining to be honest. It didnt arrive by the time I went to India and since Lloyds froze my debit card whilst I was out there I really could have done with it, trying to pay for a hotel in cash looks very dodgy! But I'm off to Italy on Sunday so will be using it for the hotel there.

Thanks for your advice everyone.

That is good news provided you pay it off in full each month. After a while you could apply to transfer the balance and hopefully your credit file will have repaired itself enough for you to get a card with normal [or less exhorbitant] rates.

Do not fear, once bitten, twice shy! The money to clear the balance in full is already stashed and I haven't even used it yet!