1st time C/C user. Few questions on it & credit rating

Nine_Lives

The g/f has just received her Nationwide Credit Card & i should be receiving mine soon hopefully. I'm new to all of this, so i want to check i've understood it:

http://www.nationwide.co.uk/creditcard/goldcard/more-details.htm

** Assuming direct debit is set up for the whole balance to be debited from your debit card in all cases

You will be billed interest/charged if....

1. You use the card in the 'hole-in-the-wall' machines
2. [any others???]

You wont be billed any interest/charged if:

1. you use the card online
2. you use the chip-&-pin (say, buying your weekly shop at the supermarket or clothes in a store etc)
3. [any others????]

Told you i'm new to this.




CREDIT RATING/SCORING:

The g/f has recently been refused the Halifax Reward Account as according to them, she didn't pass the credit scoring criteria.

From reading on here i understand if you have credit cards & pay them on time, incurring no charges, then you'll improve your credit score.....??



So when she gets offered store cards from places like "New Look" "Top Shop" etc etc, should she be taking them out?


She was offered one from New Look today. Does it work the same as a typical credit card? Buy the clothes, get the bill at the end of the month (for e.g.), pay the entire balance via direct debit = happy days, or are there any sneaky charges/potholes with these store cards?



Help as always, very much appreciated.

CLAPTON

Yes set up a DD for the full amount.

however for the first month or so make sure you check the credit card bill so it says that the bill will be paid by the DD.. it can take a while to set up

if in doubt make sure you pay at least the minimum by other means.

If you pay in full and don't
-draw cash at ATMs
-use gambling sites
-buy travellers cheques
-buy foreign currency

then you will pay no interest

There is no real benefit in having store cards unless you specifically want them for other benefits

Nine_Lives

Thanks for the feedback.

How can the g/f go about improving her chances of opening the Halifax Reward Account? Just use her credit card without incurring charges so that her credit score improves?

I know she got in debt with cards approx 8 years ago, but that's been cleared for around 5years now. I've no idea how long it stays on your 'record' though.



I saw a site where you can pay for your credit records, but there were 2 payments. One was a couple of £, the other was about £20 if i remember right. Don't know which would be the one needed.

CLAPTON

things stay on credit records for 6 years

you can get a statuatory report from the credit agencies for £2 .. they tell you everything you need to know

her credit record will improve over time if she is seen to have credit and use it properly ..i.e. use the CC each month and pay in full
if she feels more comfortable having two CCs or 1 CC and 1 store card then fine but make sure she always pays on time otherwise it will make her credit record worse... pay by DD