Credit limit increase

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abbiesmum2003
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by abbiesmum2003 » Thu Aug 16, 2018 7:35 am
Hi everyone
We are due to have our meeting on Aug 28th to finally see if creditors will accept the secured loan to finish our iva.
We have both applied for credit building cards already and been approved with a low limit as still within iva clause.
Credit score this month has improved and it says due to using credit but to improve further it says about using the credit and increasing our limit.
Obviously bot doing that until we have certificate but just wondered if it is best to wait for natural increases from current card provider, or to have a couple of cards with low limits with seperate providers? Or doesnt it matter?? Very conscious of not getting in the same trouble as before and we have a plan to use them for petrol/shopping then paying off rather than waiting for minimum payment via statement.
Just wondered if anyone had any thoughts on how best to improve our score using a sensible amount of credit.
normanna
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by normanna » Thu Aug 16, 2018 7:53 am
abbiesmum2003 wrote:
Hi everyone
We are due to have our meeting on Aug 28th to finally see if creditors will accept the secured loan to finish our iva.
We have both applied for credit building cards already and been approved with a low limit as still within iva clause.
Credit score this month has improved and it says due to using credit but to improve further it says about using the credit and increasing our limit.
Obviously bot doing that until we have certificate but just wondered if it is best to wait for natural increases from current card provider, or to have a couple of cards with low limits with seperate providers? Or doesnt it matter?? Very conscious of not getting in the same trouble as before and we have a plan to use them for petrol/shopping then paying off rather than waiting for minimum payment via statement.
Just wondered if anyone had any thoughts on how best to improve our score using a sensible amount of credit.


You don't actually have a credit score that lenders take notice of - it's your history of payments that counts. If you think there is a chance you might get into trouble again then I would suggest you just stick with your current cards for a while and see how you go. You should wait for the statement to be produced and then pay in full before the due date - never pay minimum amount regularly as you pay high interest and a history of this can be a red flag to potential lenders.
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Lisa Thomas
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by Lisa Thomas » Thu Aug 16, 2018 8:12 am
Unless and until the IVA has finished, you are off the insolvency register and 6 years has passed form the start of your IVA I doubt your credit rating will improve very much.
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abbiesmum2003
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by abbiesmum2003 » Thu Aug 16, 2018 8:37 am
I dont think there is a risk of getting into trouble. We have spent 5+ years without credit, raised three children, learnt alot about budgetting and can manage without it but from reading posts to get a credit history back and improve 'score' you have to sensibly have and manage credit again.

Our scores are increasing each month, we have noodle, clearscore and experian to keep an eye on things, despite still technically being in an iva although havent paid since june when we made our 60th payment!! Caught up in te CF fiasco.

My question was about how best to achieve a credit history again.
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Foggy
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by Foggy » Thu Aug 16, 2018 8:55 am
My experience was that the first card I got (Vanquis) which started out at £250 limit and crept up in stages to £1500, didn't do a lot ... the agencies saying the low credit limit was a hinderance to a good score. So, after the IVA had cleared. I applied to a Post Office card (£1600, where it has stayed) which helped a bit, but my report still cited low limits as a bad point. Finally, as mentioned before, Co-Op gve me one of theirs with £1000 limit and the warnings regarding low credit dropped off my noddle and Clearscore reports.

Then ... the sticking point was low usage (actually, practically none at all as I was afraid of the things!), so now, I use them, in turn, for petrol and also for big purchases (to get the extra security of the consumer credit act), but still always pay them off before the interest kicks in. So that warning also disappeared. My "score" still isn't perfect, but it is well above the national average and also even further above my local average.

However, as Normanna points out, lenders do not actually see a score, but a usage history (all those green ticks and account limits and balances). They like the confidence that a few lenders have also had the confidence to "lend" and they like to see modest usage against the credit limits (also not too high a total potential lend if you decided to max out the cards).

All a bit of a blindfolded highwire act !
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Shaun Vickery
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by Shaun Vickery » Thu Aug 16, 2018 10:44 am
Normanna is absolutely right, lenders generally take little (or no) notice of the credit score provided by the credit reference agencies themselves but it's a good indicator all the same. My guidance would be to make sure you are registered on the voters' roll and use a credit card for everyday expenditure but make sure you pay it off every month. Once the IVA is off your credit file, as long as you do this and continue to maintain payments on your mortgage and the new second charge mortgage ('secured loan') then you will almost certainly see an improvement.

Best of luck on the 28th I am sure you will be fine!
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Shaun Vickery
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by Shaun Vickery » Thu Aug 16, 2018 10:47 am
The payment history on the new second charge mortgage will also be a positive influence on your score of course.

The only other thing I would mention is to be careful of applying for too many different credit cards....too many searches recorded against you can have a negative impact. So my suggestion is, once the IVA is settled, find one you know you are likely to be accepted by and stick with that one for the time-being.
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kallis3
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by kallis3 » Thu Aug 16, 2018 11:07 am
Most of them now allow you to do a soft search which does not impact on your credit record.
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Shaun Vickery
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by Shaun Vickery » Thu Aug 16, 2018 11:20 am
As I understand it the soft search is almost exclusively relevant to an enquiry which will give an indication as to whether you are likely to be accepted (and won't affect your credit score), an actual application will still involve a full search (which could)....unless anyone knows different.
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abbiesmum2003
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by abbiesmum2003 » Thu Aug 16, 2018 11:30 am
Thanks foggy and shaun.
It does say about average usage. Gives the impression about using roughly 50% of available credit as a good indication.
but obviously blinking scary when not used one for years!
The SL isnt showing yet Shaun but yes i guess it will do once finally agreed! There wont be a problem meeting mortgage and loan payment. Select have worked exceptionally hard to look at our affordability....more so than an IVA I&E did.
Foggy your advice about using for petrol and shopping is what we will do then pay off the whole balance within our income as though we had used the current account.
So perhaps stick with what weve got for now. Wait for the CC to come then be very selective about what we apply for to avoid too many searches and be patient!
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Shaun Vickery
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by Shaun Vickery » Thu Aug 16, 2018 11:46 am
Sounds like a good plan...the loan won't show on your profile until after it is completed but, with a fair wind now that Creditfix are able to proceed with the creditors meeting, that should be soon and your IVA will be history. If you'd like to send me a private message with your details on I can keep an eye on this for you. In the meantime thank you for your positive feedback.
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abbiesmum2003
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by abbiesmum2003 » Thu Aug 16, 2018 9:05 pm
Shaun Vickery wrote:
Sounds like a good plan...the loan won't show on your profile until after it is completed but, with a fair wind now that Creditfix are able to proceed with the creditors meeting, that should be soon and your IVA will be history. If you'd like to send me a private message with your details on I can keep an eye on this for you. In the meantime thank you for your positive feedback.


How do I PM you Shaun?
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Foggy
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by Foggy » Thu Aug 16, 2018 11:45 pm
abbiesmum2003 wrote:
Shaun Vickery wrote:
Sounds like a good plan...the loan won't show on your profile until after it is completed but, with a fair wind now that Creditfix are able to proceed with the creditors meeting, that should be soon and your IVA will be history. If you'd like to send me a private message with your details on I can keep an eye on this for you. In the meantime thank you for your positive feedback.


How do I PM you Shaun?


There is no PM facility on this forum -- you need to email Shaun via the website link in his profile or signature.
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Shaun Vickery
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by Shaun Vickery » Mon Aug 20, 2018 9:56 am
Sorry, that's what I meant really. I am sure the mediators on the site will excuse me just this once? ....my direct email address is shaun.vickery@theselectpartnership.co.uk
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Foggy
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by Foggy » Mon Aug 20, 2018 11:08 am
Shaun Vickery wrote:
Sorry, that's what I meant really. I am sure the mediators on the site will excuse me just this once? ....my direct email address is shaun.vickery@theselectpartnership.co.uk


Hmmm .. have to think on that :D :D
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