Should i try and get some credit?

misssmcc

first, let me say, i'm very afraid of owing money so this is quite scary to me. the only credit i have, and have ever had, is a next account. my limit on it is £2200 and the balance owing is around £1400. i've never had a loan/ cc/ overdraft, not even a contract mobile phone lol.
lately i've been wondering if i should try for some more credit, liike a small overdraft, or one of those 'bad credit' cards (vanquis or something) which i would repay in full each month, as a kind of credit builder. my income is low, so im not looking to make any major purchases or anything. im afraid to try incase im declined though. im only wondering this because ive read posts saying no credit is the same as bad credit, and i would like to have the choice in the future when my family circumstances are easier and i have a higher income if i want a bigger loan or a mortgage.
i would not be irresponsible if i did get something, my mum went bankrupt when i was 15, i think thats why credit terrifies me. what do you all think? should i try for something or just wait until i actually need it?

LovelyLeeds

misssmcc wrote: »

...thats why credit terrifies me. what do you all think? should i try for something or just wait until i actually need it?

Wait until you actually need it. If credit terrifies you - I would give it as wide a berth as possible.

KPR11

misssmcc wrote: »

the only credit i have, and have ever had, is a next account. my limit on it is £2200 and the balance owing is around £1400.

You should be looking to clear this ASAP, as far as my understanding goes the interest on this is sky high (could be wrong as I have never had a store card)

misssmcc wrote: »

no credit is the same as bad credit,

That is my understanding as well

LovelyLeeds wrote: »

Wait until you actually need it.

If you wait till you need it, you might be in a position whereby you don't get any because you have not got a credit history.

CLAPTON

if you have a balance on the next card of 1,400 that you haven't paid off then maybe it would be best to avoid a credit card until you pay this off in full

jakesuk

Yep - totally pointless paying off a Vanquis CC in full every month and at the same time incurring £££££ in interest on the Next card!

MichaelCR

misssmcc wrote: »

first, let me say, i'm very afraid of owing money so this is quite scary to me. the only credit i have, and have ever had, is a next account. my limit on it is £2200 and the balance owing is around £1400. i've never had a loan/ cc/ overdraft, not even a contract mobile phone lol.
lately i've been wondering if i should try for some more credit, liike a small overdraft, or one of those 'bad credit' cards (vanquis or something) which i would repay in full each month, as a kind of credit builder. my income is low, so im not looking to make any major purchases or anything. im afraid to try incase im declined though. im only wondering this because ive read posts saying no credit is the same as bad credit, and i would like to have the choice in the future when my family circumstances are easier and i have a higher income if i want a bigger loan or a mortgage.
i would not be irresponsible if i did get something, my mum went bankrupt when i was 15, i think thats why credit terrifies me. what do you all think? should i try for something or just wait until i actually need it?

You're in a good position to build some credit ! Pay this card off, Or make more than the minimum payments untill you can afford to clear the balance, Once you've paid this off, You'll have built some good credit ! And the likely hood of acceptance with someone like Capital One's Classic or barclaycard Initial is very high !

WHAT EVER YOU DO, DO NOT MISS ANY PAYMENTS, AND DON'T ONLY JUST PAY THE MINIMUM BALANCE.

Make sure you are on the electoral Roll aswell, As its pretty much a rejection if you aren't.

Best of luck !

misssmcc

thanks, it's not something i'm looking to do in the very near future, more like advice for the future, and i agree about the next account. i always make more than the minimum payments, and the outstanding balance is not normally this high, it's just my sister asked me to buy her a laptop on it (she works full time and still lives with my mum so pays minimal bills, so no problem paying, and if something goes drastically wrong like losing her job etc i will just have to pay it, i know the risks before someone pipes in.) with the electoral roll, how do you check if you're on it?

m00m00

get a copy of your £2 credit records from Equifax and Experian.

these will show your electoral role info, and also whether the Next card is reporting to the CRA's

if it is reporting, then there is no need for you to go for a sub prime card like Vanquis, as long as you are making the payments you are building credit history

CLAPTON

misssmcc wrote: »

thanks, it's not something i'm looking to do in the very near future, more like advice for the future, and i agree about the next account. i always make more than the minimum payments, and the outstanding balance is not normally this high, it's just my sister asked me to buy her a laptop on it (she works full time and still lives with my mum so pays minimal bills, so no problem paying, and if something goes drastically wrong like losing her job etc i will just have to pay it, i know the risks before someone pipes in.) with the electoral roll, how do you check if you're on it?

laptops cost abround 3-400 and if she lives at home and works why didn't she pay cash?

Venusflytrap

CLAPTON wrote: »

laptops cost abround 3-400

Not if you're buying a Macbook.

misssmcc

CLAPTON wrote: »

laptops cost abround 3-400 and if she lives at home and works why didn't she pay cash?

the one she wanted was more expensive, some of the debt is mine though. and she didnt pay cash because she recently bought a pug puppy for £750 (don't even get me started on that one) but she has had me order things on my next account before and always paid as promised. if i had any doubts about her integrity when it comes to paying what she owes i wouldn't of done it.