New credit card questions

supreme

I've been accepted for my first credit card - a Natwest Classic. I am really chuffed about this, but I've been living off debit cards for the last eight years and, as I understand it, there are quite a few differences with credit cards. I have thoroughly read the terms and conditions of the credit card, but doing so has left me with a few questions that I would like to clear up before I start using it.

• Is there a minimum amount that I will need to spend when making a purchase?
• Does not using the credit card in any way affect my credit rating?
• Will I in any way be adversely affected if I make a lot of purchases in a month?
• Assuming I make all the payments on time and in full, when will the card start having a positive effect on my credit rating?
• How long does it normally take for transactions to appear on mini statements or online banking services?

I hope you don't think of me as completely naive and ignorant, and thank you in advance for any help you can provide.

MPH80

supreme wrote: »

Is there a minimum amount that I will need to spend when making a purchase?

Depends on the shop - smaller shops will generally impose a £5 or £10 min spend

Does not using the credit card in any way affect my credit rating?

In theory no, but the company may not renew it when it comes time if you don't use it much.

Will I in any way be adversely affected if I make a lot of purchases in a month?

Only if you don't pay it back.

Assuming I make all the payments on time and in full, when will the card start having a positive effect on my credit rating?

That's much harder to say - in theory immediately - but most lenders will want to see a solid history - so I'd guess it'll have a positive effect in 6 to 12 months time - but I've got no evidence for that - just guesswork.

M.

hippey

supreme wrote: »

I've been accepted for my first credit card - a Natwest Classic. I am really chuffed about this, but I've been living off debit cards for the last eight years and, as I understand it, there are quite a few differences with credit cards. I have thoroughly read the terms and conditions of the credit card, but doing so has left me with a few questions that I would like to clear up before I start using it.

• Is there a minimum amount that I will need to spend when making a purchase?
• Does not using the credit card in any way affect my credit rating?
• Will I in any way be adversely affected if I make a lot of purchases in a month?
• Assuming I make all the payments on time and in full, when will the card start having a positive effect on my credit rating?

I hope you don't think of me as completely naive and ignorant, and thank you in advance for any help you can provide.

Your answers:

1, No, you could use it for £0.01 if you wanted.
2, It might, some other providers might see a 'dormant' card on you credit file and wonder why your applying for other cards, but in general it should not matter. Some providers now charge for a period of non-use, this is worth checking.
3, I use my CC every month to make all my purchases and not noticed any adverse reports, your card could be 'refered' should you make a number of large purchases, but this is for fraud prevention and nothing more.
4, It could make a positive addition to your file, however every company has it's own methods of calculating if your loan / overdraft / credit card should be approved, your credit file is a small part of this, but often a good one.

JoolzS

This post is obviously a joke.

supreme

JoolzS wrote: »

This post is obviously a joke.

I must be pretty stupid then because that wasn't apparent to me.

_Andy_

JoolzS wrote: »

This post is obviously a joke.

Why do you think that?

NickX

JoolzS wrote: »

This post is obviously a joke.

Why ??

These seem sensible questions to a newbie card holder and they are doing the correct thing in posting here. Better that than plough on ahead not being sure and then posting in 6 months time because their Credit Rating as taken a knock.