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Credit Cards After a Trust Deed In Scotland

6th August 2012

Upon completing protected trust deeds in Scotland many people wish to begin work on improving their credit score. This is especially important for people that may require major finance in the future, perhaps to fund the purchase of a home or car for example. One acknowledged way to begin improving your credit rating is to make responsible use of a credit card.

By making regular small purchases on a credit card, and fully repaying the balance owed on time each month, you can demonstrate positive use of credit to future lenders.

There may be other advantages as well. Some people must fund work expenses themselves (and reclaim them later). Using a credit card can avoid the need to use personal funds for this. Some people also travel (for work or leisure) and may require a credit card for hotels or car hire. Finally, in certain circumstances extra consumer protection can be gained by using a credit card for purchases.

Of course there may be disadvantages associated with obtaining a credit card once discharged from a Scottish trust deed. Many people have no appetite to use credit again having already been subject to the negative consequences of debt problems. The credit cards available to persons completing protected trust deeds can have very high interest rates (which can mean that the cost of borrowing will be high if the full balance isn’t repaid on time).

Which credit cards might be available to someone that has recently completed a trust deed? We’ve done a little research into the subject and share the results below. Please note that any applicant will be checked individually against the current acceptance criteria of any credit card provider (which is likely to change over time). These cards might be available to you after your discharge, but you’ll only find out by applying.

Vanquis, Granite and Aquis

The Vanquis credit card (from Vanquis Bank) has often been discussed on our trust deeds forum. A number of Trust-Deed.co.uk members have been accepted for the Vanquis credit card very soon after they were discharged (a member was also accepted for a Granite card).

The Aquis and Granite cards are also offered by Vanquis Bank, and appear to be targeted in a similar way. Vanquis Bank is part of the Provident Group, which itself is best-known as a home credit (or “doorstep”) lender.

The currently advertised representative APR on these credit cards varies from 29.8% (Aquis) to 34.9% (Granite) to 39.9% Vanquis. Please note that these rates are likely to change in the future. Each one of these credit cards may currently charge a rate of up to 59.9% APR if they judge you to be a higher-risk customer.

Aqua

Aqua credit cards are issued by Progressive Credit Ltd, but appear to be managed by HBOS. We are unsure whether previous problems with Halifax or Bank of Scotland credit accounts would affect acceptance for this credit card.

They are currently advertising a representative APR of 29.7%, though clients that they perceive to be more risky might currently be offered a card with a rate of up to 49.9%.

We do not know whether Aqua has a specific policy regarding issuing credit cards to persons recently discharged from a Scottish trust deed. In February 2012 one forum member reported that she had been rejected by Aqua but accepted by Vanquis. In June 2012 another member wrote that they had been accepted by Aqua after using a Vanquis card for some time.

Capital One

Capital One also offer credit cards to persons with damaged credit histories which they advertise as being suitable for helping to rebuild a credit rating.

Currently advertised representative APR rates seem to be in the region of 28.9% to 34.9% depending upon which of their range of credit cards is applied for.

One member has reported that she was rejected by Capital One but accepted by Vanquis when she applied for a credit card upon the completion of her Scottish trust deed. We’ve scanned our forum and cannot find any recent examples of posters being accepted for a Capital One credit card soon after a trust deed. However, if a particular Capital One credit card appears to suit your needs you may still wish to make an application.

Got a question about applying for a credit card after your trust deed? It’s easy to register for our forum and ask other people that are in a similar position about their experiences.

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