Credit card for poor credit history/repairing credit

[Icelollycraving]

I ran up debts years ago which are all cleared now. I haven't had any problems for 10+ years & they were all cleared about 4 years (can't remember exactly,may be longer). I did do the credit check thing a while ago & it was getting better etc. I have almost 3 months left of maternity leave left (the unpaid bit). I have got some funds left but was thinking about a credit card for when I'm a bit stuck. I would probably only put 1k max on it & pay off within 6 months max.
So,looking at the mse page I did a credit card search from the people who do a soft search. Their results were all the capital one/vanquis type ones as they said I have low rating although they do a v limited search.
How can I repair my credit history? I haven't had any new debts etc for years! I have been at current address for 7 years. I paid everything in full. I don't go overdrawn ever. I pay mortgage,all utilities etc dd so never any late payments.
The high % rates of these cards is a bit scary & I never want to return to my old habits. Should I do a full credit check again?
Can someone explain in very simple terms my best course of action for short term borrowing (just as a back up,dh does obvs contribute etc) & for repairing my credit history. Suggestions please mnetters!

I would call up the CCSA for advice or alternatively check on the Martin Lewis website.

Have you run your Credit Report recently? It will show you how your score is being impacted...I use Check My File which gives you the reports from the 3 main credit referencing agencies (you need to register for initisl 'free' report, but once I downloaded it, I cancelled my subscription). If only short term, could your Bank support you with an overdraft?

Rather than seeing a credit card as something to use 'when you're stuck', use it as a way of managing your day-to-day spending.

For example, take out the credit card with a £1k limit, use it to buy one thing such as groceries or petrol, but then set up a direct debit to make sure you pay off the balance in full each month. Track your CC spending on a spreadsheet (or get a free download of Microsoft Money) and make sure you have enough money in your account to clear the balance each month. That way it doesn't matter how high the interest rate is because you won't be paying any, you will give yourself confidnce that you can manage a small amount of debt intelligently and you will get a good credit history at the same time.

I'd suggest a low overdraft as they don't have very high interest. The only thing is you need to use it reqularly but keep paying it off IYSWIM coz just having it sitting there isn't going to show that you are 'managing' it. Council tax going out your account is a good one to build credit as is having a contract mobile phone. Do some research into cards a lot of companies don't charge the interest if the purchase is paid off within a certain time (usually a month) I have a capital one card for 'average' credit i am only using it to balance tranfer from another card as it's 0% once this ends the interest is 34%. If you think you'd get accepted for a higher interest card more easily but there is a 'month free' period to pay off anything u buy it might be worth getting it with a low limit say £500 and using it to mayb do your weekly food shop/petrol on then paying it straight off before interest sets in this shows ur managing it well.

x post with cogito

:) RhiRhi123

My suggestion for avoiding being 'a bit stuck' would be to set up a savings account. Even if all you put in is £20 or £30/month it doesn't take long to build up a balance which is a far healthier buffer against unexpected costs than going into debt. Have the CC at the same time to boost your credit rating.

Thanks for the replies. When I'm at work,my salary is enough that tbh I always have money in the bank. I saved when pregnant etc.
I do have a contract phone & have been on electoral roll for entire time at this address.
Would getting this card help to repair my rating? How quickly does that work?

Your rating will improve gradually over time as your bad debt history gets further away and your 'responsible user of a credit card' becomes established. You'd have to keep checking your credit score to see the actual impact.

Ok,well think I may well get one then. With the 54 days interest free,do I just clear my balance each month?

Also,if doing a credit check is a good idea,which one is the best to do?

Chevck My File will give you the reports from all 3 major credit agencies.

"do I just clear my balance each month?"

Yes. Let's say your CC statement balance is on the 20th of each month & the payment is due on the 10th of the following month. Everything you buy on the CC between the 21st March and the 20th April is due on the 10th May. So if you bought something on the 22nd March you'd be getting about 6 weeks free credit. If you keep your money in your savings account earning interest for those 6 weeks you make money.

Important to set it up as a 'pay off the full balance' DD however so that you never accidentally incur interest charges.

Ok. So applied & got the form to sign. I've been going through all t&c. One bit I don't understand at all.
Total amount payable
£574.58
The total amount payable is an illustrative example. It is the sum of the total charge at the time the agreement is made. The total charge for credit calculates the interest you would pay if you were to (a) borrow up to your credit limit (b) be charged at standard purchase rate (c) repay the amount borrowed over one year in twelve equal monthly instalments (which include interest & any charges) The total amount of credit is the credit limit for your account at the time this agreement is made.

Simplify it please!

It's a hypothetical example of how much it would cost you if you did a), b) and c) all together. They have to set it out so that people can't say 'I didn't realise borrowing £xxx on a credit card with an interest rate of xx% and paying it back over 12 months was going to cost me money!!'

As you are not planning to use your CC for borrowing and will be paying off the full balance each month in full by DD (please do this), it doesn't apply to you.

Thank you,I was a bit panicked. You are the font of all knowledge cogito

I am miserly old skinflint that was left in the financial lurch a long time ago and had to learn fast how to deal with money in order not to end up in a cardboard box... :)