How to use my first credit card. Advice needed

HollyAnne

Hi everyone.
I have qualified for a student credit card with a limit of £350 out of £500. This is my first credit card and I wanted it to boost my credit rating because I think it's quite poor.
The reason I'm asking for advise is because in one of Martin's books it says having a some missed payments etc sometimes can be favoured over those with brilliant credit ratings, but I know credit cards can be quite dangerous.
I know not to use it to take money out of the wall because it is accompanied with a heft charge but I'm unsure if to just pay balances off in full or the minimum payment is better for your credit.
Thanks for any help.
Holly

darkblue_2

When starting off with new credit, you should try to pay it off in full every month.

I don't know where you read that missed payments could be good for credit scoring, but I've certainly never thought that.

Using it to pay for your shopping then clearing it off every month will help you build a credit record. They tend to increase the limits after a certain number of months when it has been used.

If you want to use it to build credit, use it at least once a month. You can set up a direct debit to pay the balance in full every month.

MFWannabe

Exactly as DarkBlue said

9217niall

Don't spend more than you can afford is the key. As darkblue says, make sure it is paid off in full each month.

onlypaddy

HollyAnne wrote: »

Hi everyone.
.....it says having a some missed payments etc sometimes can be favoured over those with brilliant credit ratings.....

You have mis-understood this. It is more likely that people who pay off less than the full balance, and therefore are charged interest and make the bank a profit, can - in rare occurences - be looked upon more favourably than people who pay off in full. This is purely based on whether they think a customer will make the bank money or not.

Never, ever miss your payments - it will significantly damage your credit rating.

HollyAnne

Thank you everyone for replying. The advice is great. I feel like a grown up now I will be getting a credit card, albeit a student one :j. I have a really REALLY bad credit rating due to my sister using my name but hopefully I will be able to boost it back up by the time I come out of Uni.

Absurdity_2

Hi Holly,

I was also considering getting a credit card to boost my rating, I was just wondering which card have you got?

Thanks

thecableguy12

Absurdity wrote: »

Hi Holly,

I was also considering getting a credit card to boost my rating, I was just wondering which card have you got?

Thanks

I use my card to pay for petrol every week then pay it off in full every month...just an idea , if you dont drive use it to pay for a travelcard etc