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Increasing Credit Rating Via CC
Crucial
Posts: 1 Newbie
in Credit cards
Hi,
I'm 18 and currently have 2 Credit Cards, I did have an Aqua (non-activated). Long story short they sent me an agreement form I never signed but they still sent my card (this was when I got no reply after a week of applying so I signed up with Capital One).
Anyways now that is completely cancelled off. I have Capital One and I got approved when I went to my bank management at Natwest so I have this too.
I have a job part time, I am able to use 90% of the credit limit each month (£250 and £500 retrospectively) and I have setup direct debit to pay off the FULL sum on the due date. I believe this is after I get the statement.
For example statement date is 20/05/2014, I paid it off on the 31st. It had a due date of 14/06/2014.
- Is the above helping me build my credit rating or it's no use since i'm paying it off in full always?
- Should I turn off direct debit and pay manually much more closer to the due date? Like 10th of the month
- Also it must mean I have some good/above average rating already since I got accepted for Natwest at my age?
Thanks!
I'm 18 and currently have 2 Credit Cards, I did have an Aqua (non-activated). Long story short they sent me an agreement form I never signed but they still sent my card (this was when I got no reply after a week of applying so I signed up with Capital One).
Anyways now that is completely cancelled off. I have Capital One and I got approved when I went to my bank management at Natwest so I have this too.
I have a job part time, I am able to use 90% of the credit limit each month (£250 and £500 retrospectively) and I have setup direct debit to pay off the FULL sum on the due date. I believe this is after I get the statement.
For example statement date is 20/05/2014, I paid it off on the 31st. It had a due date of 14/06/2014.
- Is the above helping me build my credit rating or it's no use since i'm paying it off in full always?
- Should I turn off direct debit and pay manually much more closer to the due date? Like 10th of the month
- Also it must mean I have some good/above average rating already since I got accepted for Natwest at my age?
Thanks!
0
Comments
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You need to get away from the whole "credit rating" thing and instead focus on what you're building and why you're building it. Well, that's easy: You're building a snapshot of your credit history over the last six years for someone to read and that "someone" is a lender.
If all lenders viewed a credit history in the same way and all had the same criteria in making a decision how easy it would be: The CRA service we are signed up for gives us a rating or score, we build our credit history to get that score high and lo and behold we get everything we apply for. But it doesn't work that way because lenders have different criteria and even view your credit history in different ways.
For example for a lender who is just looking for zero defaults and zero CCJs a credit history where all accounts are up to date and has no CCJs is good enough for them. On the other hand if a lender is looking for customers who will keep a balance and make them a profit and you pay off your whole balance every month they are likely to view you as a potential dead customer. But then again some lenders issue credit cards on the chance that the customer might run up a balance they can't afford to pay off and who will pay the minimum payment for the rest of their lives earning the lender a big profit along the way.
So now you might see that your questions cannot be answered specifically because it all depends on who is reading your credit history.0 -
Hi,
I'm 18 and currently have 2 Credit Cards, I did have an Aqua (non-activated). Long story short they sent me an agreement form I never signed but they still sent my card (this was when I got no reply after a week of applying so I signed up with Capital One).
Anyways now that is completely cancelled off. I have Capital One and I got approved when I went to my bank management at Natwest so I have this too.
I have a job part time, I am able to use 90% of the credit limit each month (£250 and £500 retrospectively) and I have setup direct debit to pay off the FULL sum on the due date. I believe this is after I get the statement.
For example statement date is 20/05/2014, I paid it off on the 31st. It had a due date of 14/06/2014.
- Is the above helping me build my credit rating or it's no use since i'm paying it off in full always?
- Should I turn off direct debit and pay manually much more closer to the due date? Like 10th of the month
- Also it must mean I have some good/above average rating already since I got accepted for Natwest at my age?
Thanks!
Normally best to pay off in full after the statement date, achieves your goal of building a credit history without costing you any money.
If you have a direct debit set up I'm not sure why you'd pay off before it is taken, it can complicate matters and mean hp that the dd is also taken. Probably best to just leave the direct debit go through, though you also seem to be using up most of the available credit in which case you might need to make payments before just to free up balance, make sure you don't go over y,our credit limit as it will leave a black mark and you will be charged.0 -
Normally best to pay off in full after the statement date, achieves your goal of building a credit history without costing you any money.
If you have a direct debit set up I'm not sure why you'd pay off before it is taken, it can complicate matters and mean hp that the dd is also taken. Probably best to just leave the direct debit go through, though you also seem to be using up most of the available credit in which case you might need to make payments before just to free up balance, make sure you don't go over y,our credit limit as it will leave a black mark and you will be charged.
The DD payment is typically taken at the last minute so what happens if the DD fails? One reason why some of have a DD but make a payment before that where the DD is a safety net in case we forget to pay. It can happen though that we forget to pay and the DD fails in which case we're well and truly up the creek without a paddle.0 -
The DD payment is typically taken at the last minute so what happens if the DD fails? One reason why some of have a DD but make a payment before that where the DD is a safety net in case we forget to pay. It can happen though that we forget to pay and the DD fails in which case we're well and truly up the creek without a paddle.
You keep on making more and more ridiculous statements. If the direct debit isn't taken you're covered by the direct debit guarantee, so no adverse charges or effect on your credit file as the card issuer takes that responsibility.
Just make sure it's set up correctly and you have funds available and any problems aren't yours.0 -
You keep on making more and more ridiculous statements. If the direct debit isn't taken you're covered by the direct debit guarantee, so no adverse charges or effect on your credit file as the card issuer takes that responsibility.
Just make sure it's set up correctly and you have funds available and any problems aren't yours.
If I'm ridiculous in doing that then a lot of people on MSE are also ridiculous.
In what way are you covered by the DD guarantee if the direct debit fails? If it fails you missed a payment if you haven't already made a payment.0 -
If I'm ridiculous in doing that then a lot of people on MSE are also ridiculous.
In what way are you covered by the DD guarantee if the direct debit fails? If it fails you missed a payment if you haven't already made a payment.
It's the responsibility of the card issuer' if they fail to draw the money that's their fault for which you can't be held responsible.
If you don't trust dds then fine, just do the payment manually. Trying to combine the two leads to many complications which are often related on here as the card issuers policies do vary, dd is easy for me particularly as I may be working away.0 -
It's the responsibility of the card issuer' if they fail to draw the money that's their fault for which you can't be held responsible.
But what if your own bank fails? Or what if you fail in your budgeting calculations and there is no balance and overdraft available?
Personally, I'd say that your own standpoint in not providing for possible errors is just about as ridiculous as it gets.0 -
But what if your own bank fails? Or what if you fail in your budgeting calculations and there is no balance and overdraft available?
Personally, I'd say that your own standpoint in not providing for possible errors is just about as ridiculous as it gets.
You are quickly becoming a nuisance on this forum.
If that happened, then with or without a direct debit, you won't be able to afford your payment and you'll miss a payment. Having bills to pay is a simple as making sure you have enough money in the account to pay them.
Nobody should ever leave their bill paying account without enough money to pay their bills.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
thebritishbloke wrote: »You are quickly becoming a nuisance on this forum.
If that happened, then with or without a direct debit, you won't be able to afford your payment and you'll miss a payment. Having bills to pay is a simple as making sure you have enough money in the account to pay them.
Nobody should ever leave their bill paying account without enough money to pay their bills.
I don't see how that works. If the DD fails you won't miss a payment if you've already made payment which is my point.0 -
I don't see how that works. If the DD fails you won't miss a payment if you've already made payment which is my point.
Your argument is that the DD would fail because you don't have enough money in the account. This would still be a problem if you pay it off early manually.
If you have money in the account, and you have the direct debit set up, if there is an error at the bank, you will not be left at fault. The direct debit guarantee is there to protect you from money being taken early, or duplicate transactions etc.
You've already set up the direct debit, meaning you've agreed for the lender to take the money out of your bank account on the agreed date. Your obligation is fulfilled, now all you need to do is make sure there's money in the account.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0
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