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I've NEVER had a Credit Card....but will do soon.

As the title reads I will soon be getting a cc, but have never had one before so I moving forward......slowly.

I've been reading the deals and understanding min payments, but would like to know the following:

If I get one of the 0% 12 mths deals on purchases and make the min payments for a few months, can I then pay large amounts off in the last remaining months before the 0% deal ends?

I will set up a direct debit for the min payment, but would like to know if I can manage my card online and make larger over payments to get the debt cleared.

Might sound like a nooby question, but got to get it right.

Thanks ;)

Comments

  • laney85
    laney85 Posts: 861 Forumite
    If you have never had credit you dont stand much chance of getting a 0% card or a big limit. Might have to start with a sub prime with high intrest low limit.
  • I must have something because the loan and credit card letters that come through my door offering all sorts of silly credit suggests I can have pretty much anything.

    I have a mortgage and personal loan (almost paid off) and have had no issues with payments.

    Surely I have good credit?
  • Not really.

    You do not have much credit history. A mortgage and loan will probably not be reported to the CRAs so according to your record you have had no credit.

    You certainly don't have bad credit, but no provable good either.
    Please note that any posts that I make on here are based on my personal opinion, experience and what I have read.
  • Tixy
    Tixy Posts: 31,455 Forumite
    You might be able to get one if you have other credit products, although revolving credit like a card can sometimes be viewed differently so you may not get a big limit to start. Check your credit report to see what credit accounts you have showing.

    Yes you can operate the account as you want, paying off larger chunks as and when you want. As you understand the key thing is to always make the minimum payment no matter what else you pay.

    Many cards now have the ability to manage the account online but do double check that whichever one you decide to apply for does.

    If your own bank do a 0% card this might be a good place to try.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • smidgey
    smidgey Posts: 163 Forumite
    A mortgage and loan will probably not be reported to the CRAs so according to your record you have had no credit.
    Whaaaaaaat? Both my mortgage and loan are on my credit reports.
  • Tixy
    Tixy Posts: 31,455 Forumite
    smidgey wrote: »
    Whaaaaaaat? Both my mortgage and loan are on my credit reports.

    Don't think I've ever had a loan or mortgage that hasn't appeared on mine. If they are from a high street bank and started in the last 10years or so I think they would nearly always be reported.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • izools
    izools Posts: 7,513 Forumite
    1,000 Posts Combo Breaker
    edited 22 July 2010 pm31 1:37PM
    Not really.

    You do not have much credit history. A mortgage and loan will probably not be reported to the CRAs so according to your record you have had no credit.

    You certainly don't have bad credit, but no provable good either.

    What a load of codswallop! Of course the loan and mortgage will appear on OP's credit file.

    OP - just because you've had letters through the post inviting you to apply means nothing about your actual score. They perform the credit check and risk / affordability analysis after you've filled in and returned the application. They don't know your credit standing before sending out an invitation to apply.

    Having a loan and mortgage will stand you in mediocre stead for being approved for a half decent card but keep in mind you stand a high chance of being knocked back as the credit card company has no way to gauge how you will run the account.

    Therefore you may end up having to apply for a sub-prime credit card.

    I would suggest the first card you apply for be the Creation card -

    http://www.your-application.co.uk/netfinancecertegymicrosite/creation/Welcome.aspx

    This is probably the easiest-to-get "prime" credit card on the market.

    If you are knocked back, my advice would be to get the Capital One Progress. Much easier to get card, starts off with a high APR and easy-to-pass credit score, but the APR decreases over time in line with your running the account properly:

    http://www.capitalone.co.uk/creditcards/progress-credit-card.jsf

    Good luck, and keep us posted :o
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
  • Ahh ok...it's all maker sense to me now!! So to get in to good credit I need to start with an average APR and keep making the payments and during this time my credit score will improve...right?

    I need to read a bit more on 'prime', but I think I have a grasp on it all?!? lol
  • izools
    izools Posts: 7,513 Forumite
    1,000 Posts Combo Breaker
    Frosty11 wrote: »
    Ahh ok...it's all maker sense to me now!! So to get in to good credit I need to start with an average APR and keep making the payments and during this time my credit score will improve...right?

    I need to read a bit more on 'prime', but I think I have a grasp on it all?!? lol

    Exactly.

    Have a look at the two cards I linked to in my post, they are the best starting ground you can hope for :o


    Good luck! :beer:
    Cashback Earned ¦ Nectar Points £68 ¦ Natoinwide Select £62 ¦ Aqua Reward £100 ¦ Amex Platinum £48
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