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    • dmo84
    • By dmo84 25th Nov 17, 3:12 PM
    • 40Posts
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    dmo84
    Best 0 % card at the moment - small limit for fuel etc to boost credit score
    • #1
    • 25th Nov 17, 3:12 PM
    Best 0 % card at the moment - small limit for fuel etc to boost credit score 25th Nov 17 at 3:12 PM
    Hi all,

    I have got myself debt free, well apart from a £200 overdraft, all loans are paid off, old credit cards (x 2) were cleared off and closed mid summer this year, I dont have a mortgage but I am looking to apply for one soon.

    I have a good credit rating (9 positives but 1 negative) the only negative being that I dont have any current credit card accounts, I have a score on clear-score of something like 586 I think,

    If I open a 0% credit card and lets say use it for my fuel for work and pay it off in full is this likely to boost my credit score and benefit me when coming to apply for a mortgage ? thats what mortgage advisor is telling me to do

    Whats the best card out there at the moment ? that may offer rewards also, I will have a search through comparison sites.

    cheers all
Page 1
    • TadleyBaggie
    • By TadleyBaggie 25th Nov 17, 3:51 PM
    • 2,482 Posts
    • 1,815 Thanks
    TadleyBaggie
    • #2
    • 25th Nov 17, 3:51 PM
    • #2
    • 25th Nov 17, 3:51 PM
    No point having a 0% card if you pay it off in full every month, any credit card would do.
    • Dobbibill
    • By Dobbibill 25th Nov 17, 9:47 PM
    • 2,547 Posts
    • 3,634 Thanks
    Dobbibill
    • #3
    • 25th Nov 17, 9:47 PM
    • #3
    • 25th Nov 17, 9:47 PM
    Any credit card (with the exception of TSB Advance) if paid in full on time will avoid interest due to the grace period.

    Have you done an eligibility checker or approached your bank?
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • MatthewAinsworth
    • By MatthewAinsworth 25th Nov 17, 9:56 PM
    • 2,890 Posts
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    MatthewAinsworth
    • #4
    • 25th Nov 17, 9:56 PM
    • #4
    • 25th Nov 17, 9:56 PM
    You could use the 0% to get out of overdraft

    Or get a rewards card instead
    • Gary_Dexter
    • By Gary_Dexter 25th Nov 17, 10:09 PM
    • 186 Posts
    • 112 Thanks
    Gary_Dexter
    • #5
    • 25th Nov 17, 10:09 PM
    • #5
    • 25th Nov 17, 10:09 PM
    0% on what? Interest? Purchases? Balance Transfers?

    Also you're not trying to improve your score but build a good history.

    Check all 3 of your files with the CRA'S
    • Kim_13
    • By Kim_13 25th Nov 17, 10:53 PM
    • 1,465 Posts
    • 1,752 Thanks
    Kim_13
    • #6
    • 25th Nov 17, 10:53 PM
    • #6
    • 25th Nov 17, 10:53 PM
    See this article for the beat 0% purchase cards: https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

    This article is for the best Cashback cards:
    https://www.moneysavingexpert.com/credit-cards/cashback-credit-cards

    If you're accepted with a higher limit than you'd like, you can ask the lender to reduce it to an amount of your choosing.

    Remember to clear a rewards card in full by the due date, otherwise the interest will cost you more than the rewards you earned.
    Sealed Pot 11 #520 ~ /£100
    VSP 2017 #9 ~ £108.83/£250.00
    CCCC 2017 #1 ~ £220.95/£120.00

    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • dmo84
    • By dmo84 26th Nov 17, 4:12 PM
    • 40 Posts
    • 3 Thanks
    dmo84
    • #7
    • 26th Nov 17, 4:12 PM
    • #7
    • 26th Nov 17, 4:12 PM
    Iv done a comparison lookup there are cards out there for building your credit rating,

    Vanquis Bank (24.7% APR Variable)
    • This card can help to build your credit rating
    • Your credit limit could increase after 5 months, and again every 5 months after that, up to a maximum of £4,000. T&Cs apply





    Marbles (24.8% APR Variable)
    Barclays which do a 0% interest on balance transfers for 18 months 2.99 fee applies

    Most of them are around 24.7 APR

    How long does it usually take for it to build your credit rating? month? as for example the vanquis bank card says increase after 5 month's, is there any card atm which will do it quicker
    • Dobbibill
    • By Dobbibill 26th Nov 17, 4:50 PM
    • 2,547 Posts
    • 3,634 Thanks
    Dobbibill
    • #8
    • 26th Nov 17, 4:50 PM
    • #8
    • 26th Nov 17, 4:50 PM
    Most cards give increases to customers after a history of 6 months, some longer. This would depend on you managing your account well.

    You are building history, rather than 'rating'. Vanquis say they will review the limit every 5 months. All cards would build history month on month.

    The APR won't be of any impact if you pay in full on time every month. (Cash type transactions excluded).
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • dmo84
    • By dmo84 26th Nov 17, 4:56 PM
    • 40 Posts
    • 3 Thanks
    dmo84
    • #9
    • 26th Nov 17, 4:56 PM
    • #9
    • 26th Nov 17, 4:56 PM
    Thanks,

    If I am looking to purchase a property and get a mortgage in 3-4 months lets say then this probably wouldn't benefit me much? or is there any risks?
    • MatthewAinsworth
    • By MatthewAinsworth 26th Nov 17, 8:22 PM
    • 2,890 Posts
    • 1,151 Thanks
    MatthewAinsworth
    I wouldn't add a hard credit search 3 to 4 months from a mortgage application, and its too short a time to build any history. Too late. I have had mortgages before I ever had a credit card though
    • dmo84
    • By dmo84 28th Nov 17, 9:26 AM
    • 40 Posts
    • 3 Thanks
    dmo84
    So there is a risk involved if I am going for a mortgage within 3-4 months,

    What about the mortgage lenders rejecting or giving me not such a good deal because of this?
    • BoGoF
    • By BoGoF 28th Nov 17, 9:51 AM
    • 2,731 Posts
    • 1,964 Thanks
    BoGoF
    Generally speaking the advice is not to takeany new credit within6 months of a mortgage application. You should have kept one of your previous cards and spent on it and repay in full every month.

    If you do intend applying within the next 3-4 months you need to get rid of the overdraft, lenders dont like them.
    • dmo84
    • By dmo84 30th Nov 17, 3:37 PM
    • 40 Posts
    • 3 Thanks
    dmo84
    I have cleared the £200 overdraft so looking to stay out of that.

    I had this info from the mortgage advisor im speaking with RE the credit card thing to boost my credit and history:

    "but in my experience a credit card application, as long as the credit limit you are asking for is not say £5,000 would hardly have any baring on the outcome of a mortgage application. As mention when we spoke as long as your current credit report looks good then you could do the credit card thing or not, there is no right or wrong, in some cases we need to build a credit profile for a client as they have had no credit at all which does detrimentally effect applying for a mortgage but if you want to leave it as you have a good record already and it's not something that you want to do then that's fine too. "

    I am not sure if I should try it or not.

    I am only looking to have a £200-300 limit on the card.
    • Dobbibill
    • By Dobbibill 1st Dec 17, 7:33 AM
    • 2,547 Posts
    • 3,634 Thanks
    Dobbibill

    I am not sure if I should try it or not.

    I am only looking to have a £200-300 limit on the card.
    Originally posted by dmo84
    If you have a mortgage application around the corner it's not worth a hard search before then.

    If you are only given a £200-£300 limit that's not going to look good - that lender would think you are not capable of handling credit yet you want your mortgage company to lend you £xxx thousands believing you are capable of repaying without a problem on a good rate

    If you are heading for a mortgage application within 6 months - leave it. If you think it will be longer than that, give it a go and see what you get.....it will give you a good indication of how a lender sees you.

    If you do apply, keep the limit they give you, don't reduce it to £200-£300 even if that's all you want to use.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • dmo84
    • By dmo84 2nd Dec 17, 2:25 PM
    • 40 Posts
    • 3 Thanks
    dmo84
    No worries, I think I may leave it for now. as I am planning to get a mortgage in < 6 months. Like everyone has said I should have left one of my old ones open
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