Fresh starts

[Soulgrowth]

I have just seen this page on the cashplus site. I know that none of us ever want to get into this kind of situation EVER again and I certainly will forever be avoiding any kind of credit in the future ... but thought it might be useful and also wondered what the experts thought.

http://www.cashplus.co.uk/about-cashplu ... ilder.aspx

Debbie

P.S
Admin I hope this isn't classed as "unsolicited" [:(]

[admin]

what do the experts think of this link ?
admin

[carlmcmullen]

"Advanced Payment Solutions Limited loan you £59.40 to pay for one year's use of your cashplus card - the money is only available for this purpose. "

I think it would depend on the agreement - it could be seen as taking credit ??

"After 12 monthly payments of £4.95, the £59.40 loan has been successfully repaid.
If all payments have been made on time, we report that you have completed a loan repayment to the credit bureau. "

I think that is a little misleading, as if you are in an IVA, i dont imagine that a 'loan' of £59.40 that has been repaid would improve your credit rating that much and if you are in an IVA then why would you need your credit rating improving as taking further credit is a breach anyway..... I think it is more of a sales pitch !

In reality once you enter into an IVA creditors put a default on your credit file which last for 6 years regardless so your credit rating would not really improve until after this time.

I suppose if you have completed an IVA or Bankrutcy then it would go in your favour but i think they would only report the same infomration that your bank account would

[Soulgrowth]

I suspect it's a 'hypothetical' loan ... the monthly fee for cashplus is £4.95 ... so this balances it out, just a logistical way of doing things. I would think it's designed for people coming out of an IVA or bankruptcy (or actually immigrant workers who have no UK credit history which these kind of cards seem to target themsleves at), it might make some, albeit small, contribution to helping people get back on the credit rating score for things like moving back from sub-prime mortgages to high street rates perhaps? It is for this kind of reason that I managed to keep my vodafone accounts open, one of them I don't even use but I thought that it might make a small contribution to my credit rating for the purposes of a better rate mortgage later? Every little helps!

As I've said before, I wouldn't be without my Cashplu card!! [:)]

Debbie

[Adam Davies]

Hi
I think you have to pay the £59.40 upfront so I can't see it as a loan
Useful link because prepaid cards are very useful to people in Bk or an IVA
Regards