Use Capital One's Credit Card To Repair Your Credit Rating
One of the problems in having a bad Credit Rating is that nobody really gives you any sound practicable advice on how to repair it. Well here's some hard information for you. One of the only ways to repair your Credit Rating is to prove that you're not the credit risk you once were.
So how to do this? Simple, borrow money and repay on time.
However, borrowing money for people with toxic Credit Ratings is not that easy. But Capital One has introduced a new Credit Card that guarantees to be issued to punters as long as they meet four basic conditions;
- Hand over a cash deposit ranging from £50 to £200
- Be a resident in the UK
- Offer proof of your name and address (and be over 18)
- Be neither a bankrupt nor listed on any fraud databases
Handing over a deposit of £50-£200 is not that welcome but what else can you do? Face facts, you're a bad credit risk so everyone will look to penalise you in some form or another. Swallow your pride and realise that the deposit is just part of the process and price of repairing your rating.
The other points for 95% of people should be easy to satisfy.
The Plan
So now you've got your card what should you do? Two things, firstly DON'T use the card for anything else but SMALL monthly purchases say £50-£100. What you want to do is to make the statement that 'this person borrows money every month AND pays back on time every month'. It's really as simple as that.
Keep this plan going for at least a year if not two and your credit file will start to fill up with many pluses. Minuses are ALWAYS given for late payments and it's these late payments that are likely to have got you into trouble in the first place.
Spending Limits & APR
Spending limits on the card range from £200 to £2,500 and we would strongly argue that you insist on the lowest limit possible. Remember the credit card is NOT for borrowing it's there to help you repair your credit rating.
APR at 29.9% is the reason that borrowing on the card is not advised. Borrowing at these levels is incredibly expensive and some would argue immoral especially as the card is aimed at people with a history of bad financial management.
Summary
This Credit Card is a lousy deal if you use it to borrow but it's a great deal for those with bad credit ratings who are motivated to do something about it.
