Credit cards after a Trust Deed

Cards are the rebuild tool, not the reward

A credit card after a Trust Deed isn't about spending power. It's a way to show you can handle credit again.

The aim isn't a big limit; it's a small builder card, used lightly and paid off in full every month, quietly building the positive history your file needs. After four years of regular Trust Deed payments, you're already good at the discipline this takes.

What lenders look at

Once you're discharged, you can apply. Your Trust Deed stays on your file for six years from the date it started, or the date it ended if that is later, and lenders look at that alongside your on-time history since your discharge and what you can afford.

Each sets its own criteria, so check your eligibility before you apply.

How to use a builder card the right way

• Keep spending small: a couple of regular, modest purchases. It's a rebuilding tool, not a spending tool.
• Pay it off in full, every month: this is the whole point. Carrying a balance at a builder card's high interest undoes the benefit.
• Stay well under your limit: credit reference agency guidance suggests using no more than about 30% of what's available. Lower is better.
• Hold it for the long term: the longer you manage a card well, the more creditworthy you look.

A word of caution (we mean this)

Builder cards charge high interest by design, and after a Trust Deed it's easy to slip back into relying on credit. Treat the card as a tool that demonstrates good habits, never as money to live on.

If you can't pay a purchase off in full that month, it's a sign not to make it. Used carelessly, a builder card is a slope back towards the situation you've just left.

While your Trust Deed is still running

There's no legal credit limit in a Trust Deed, but check your deed's terms with your trustee. Any new debt isn't included in the Trust Deed. Come back when your Trust Deed has finished.

Mistakes to avoid

• Applying without checking your eligibility first: each application leaves a hard search.
• Carrying a balance and paying interest instead of clearing it in full.
• Maxing the card out: high usage works against you even if you pay on time.
• Applying to several cards at once and collecting hard searches.