Credit Building After F&F

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reeves55
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by reeves55 » Wed Aug 02, 2017 4:32 pm
Hi there,

I may have asked this before however I have searched and cannot find it so may have imagined the whole thing.

I will also start by saying that i struggle to find generic answers for a lot of my queries as a lot of the resources on the web assume you have been through the full term of an IVA whereas I entered the IVA last year with a full and final with it closing in February this year.

My question is I am starting to receive letters about credit building, I am so not interested in any credit ever again beyond mortgages and car finance however I understand as some point I should think about the strategy for repairing the damage,

I have been told by Noodle that I am 100% pre-approved for a credit builder credit card with a few suppliers, I am not sure I believe this in any case, however am I right in thinking that if I took out a credit card, kept the balance to zero each month and ran it beautifully it would have zero affect in improving my score?

I will definitely need a new car and maybe mortgage in the next 5 years so improvement to credit rating would be an attractive proposition however it won't do anything will it?

Many thanks

Reeves
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Foggy
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by Foggy » Wed Aug 02, 2017 4:36 pm
Have a read here for general info:

https://www.iva.co.uk/what-does-an-iva- ... dit-record

Also look at the latest posts in my blog -- link in the signature block below.

I finished on a F&F halfway through my IVA and obtained a Vanquis card before my 6 years was up --- this gave me a bit of a history when my credit report cleared. Whether it helps or not ... well ... the jury is out on that one.
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reeves55
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by reeves55 » Wed Aug 02, 2017 10:09 pm
Thank you for this.

I would also be interested in Ryan's view point with a mortgage application next February. Would have a few months of good management of a credit card be an assistance or a bad thing?

Thanks again

Reeves
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Ryan
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by Ryan » Thu Aug 03, 2017 7:36 am
Hi Reeves,

It's a difficult question to be able to answer 100% accurately. To obtain a Mortgage so soon after entering into an IVA you would probably be looking at requiring a deposit of 25 - 40% depending on Lenders criteria's at time of application. With that size of deposit your actual credit score may not be too important as Lenders will be fully aware of the previous IVA, etc. At the point when we are looking at using High Street Lenders credit score would become more important. The most important things at that point are that you show on the Electoral Register and all 3 of your credit reports are clear and up to date. Most importantly avoid Payday loans - many people seem to believe these improve your credit score for some reason but they don't and many Lenders will now decline a Mortgage Application if any payday loans show on your credit reports.

Regards
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reeves55
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Joined: Wed Jul 20, 2016 2:42 pm
by reeves55 » Thu Aug 03, 2017 2:46 pm
Thank you both for this advice and will speak soon Ryan as we get closer to the one year anniversary of out CC.

All the best

Reeves
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reeves55
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by reeves55 » Mon Aug 07, 2017 3:40 pm
Interesting update, having looked through my options the only companies that are suggesting I would be approved for a credit builder card are companies that are subsidiaries of Capital One. Capital One were one of my creditors when I entered the IVA. I feel super suspicious about pressing the button on this. Any thoughts anyone please?

I am not excited about having a credit card again however they are useful for some purchases and I am thinking about showing how good I am with credit, as I actually am good with credit...LOL

Reeves
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Foggy
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by Foggy » Mon Aug 07, 2017 4:02 pm
I, as I mentioned, went with and was accepted by Vanquis. I have heard, though, that their acceptance rate varies according to their approval targets and the timing of applications relative thereto. So, it is a bit of a moveable feast!

Capital One were creditors of mine in several guises, as they, as you know, are behind many firms credit card schemes (and I had several!). However, since finishing I have had numerous "pre-approved" offers of cards from them. I have, however, not availed myself of any of them !
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reeves55
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by reeves55 » Mon Aug 07, 2017 4:21 pm
Thanks Foggy,

That is really interesting actually, before I posted this I had been "100% Pre-Approved" with Vanquis and I did nothing with it. A few days later after this I went back in and this time it said I was "very likely" to be approved so I went for it only to be declined so there must be something in that quota thing you mentioned.

As I said, I am in no hurry to have a credit card, however they are useful for some purchases. Maybe overthinking it however wondering what would happen if I submitted an application to a company that only 13 months ago I entered into an IVA with!!!!???

Reeves
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Foggy
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by Foggy » Mon Aug 07, 2017 4:58 pm
Having been refused and there being no urgent need for a card I would, in your position, leave it for a few months as a bunch of refusals are a bit of a red flag. In reality they do not show as "refusals", as such, but a specific credit search with no corresponding new account is pretty much the same thing.
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