Best CC for building credit history?

DeanMB · 17 May 2017 at 6:51PM

Planning to purchase my first home after April 2018. Currently only really have a mobile phone contract on my credit rating so looking to add a bit more evidence of being able to repay before I apply.

What credit cards would you recommend for this purpose? I'm currently looking at the Tesco Purchases Credit Card which offers 0% for 18-30 months, is this a good idea?

https://www.tescobank.com/credit-cards/purchases/index.html

Also is my understanding correct in that so long as I set up a DD from my current account to pay off the balance each month there will be no cost incurred?

For info: my current plan is to use the card to pay for car fuel twice a month, is there any benefit to using the card more often than that?

[Deleted User] · 17 May 2017 at 6:53PM

Any card will serve the same purpose. There would certainly be no need to get a 0% purchases card if you're clearing in full each month.

It's more a question of which card will accept you.

binaryuniverse · 17 May 2017 at 6:57PM

There's no harm in applying. But without a credit history be prepared to be rejected (but Tesco do seem a little more lax to people with poor credit history, so you may get lucky).

Failing that ask your bank. If your current account is managed well, they may be able to offer you something decent.

Last resort. Get one of those credit builder cards, such as Aqua, Capital One, Vanquis. Just make sure you pay it off in full, for each statement.

Candyapple · 17 May 2017 at 7:14PM

What about your bank account - does that now show up?

Any other bills that may be reported to your file? Some water companies/broadband/gas and electric also report to the credit reference agencies.

Have you checked your file at all 3?
Experian (MSE Credit Club)
Equifax (ClearScore)
Call Credit (Noddle)

Are you registered on the electoral roll? Is this showing on all 3 files?

Check your eligibility before you apply:
https://www.moneysavingexpert.com/eligibility/credit-cards/

DeanMB · 17 May 2017 at 7:26PM

Deleted_User wrote: »

Any card will serve the same purpose. There would certainly be no need to get a 0% purchases card if you're clearing in full each month.

It's more a question of which card will accept you.

Hadn't thought about it like that actually, obvious now you say that.

binaryuniverse wrote: »

There's no harm in applying. But without a credit history be prepared to be rejected (but Tesco do seem a little more lax to people with poor credit history, so you may get lucky).

Failing that ask your bank. If your current account is managed well, they may be able to offer you something decent.

Last resort. Get one of those credit builder cards, such as Aqua, Capital One, Vanquis. Just make sure you pay it off in full, for each statement.

Thanks, as above I'd ruled out those credit builder cards thinking that there'd be an interest fee but obviously not now I've thought about it properly.

Candyapple wrote: »

What about your bank account - does that now show up?

Any other bills that may be reported to your file? Some water companies/broadband/gas and electric also report to the credit reference agencies.

Have you checked your file at all 3?
Experian (MSE Credit Club)
Equifax (ClearScore)
Call Credit (Noddle)

Are you registered on the electoral roll? Is this showing on all 3 files?

Check your eligibility before you apply:
https://www.moneysavingexpert.com/eligibility/credit-cards/

No other bills unfortunately - currently living with parents and haven't moved out before.

I am on the electoral roll yes, so that will show.

Have checked file previously with Experian, everything came back fine, my only worry is that there isn't enough on there come mortgage application time.

nikongirl · 17 May 2017 at 8:17PM

I got a credit card for building credit history last year (ironically from the same company that I had the most debt with 10 years ago - back then they'd given me a CC with the same limit as my annual salary and I was desperate enough to use it). I've been using it regularly and have a Direct Debit set up for the full amount each month. From my mortgage broker's analysis of my credit reports it's done wonders.

Best CC for building credit history?

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