Need Advice

JoshBee25

Ok, so i've registered onto the site about 5 minutes ago i'm only 19 but basically i know at a young age company's will throw money at me to get me into the position were i do owe alot out. Which i'm not getting my self into that position :mad: Basically i'm earning around £1200-£1500 i do outbound tele sales for an outsourcing company our main client is E.on the gas & electric company.

My dad first of all told me i'm silly for getting a credit card but now he's saying after i've just payed it of still use it but pay it back straight away to build credit so if in the future i do need a bank loan or mortgage i have a few options upon were to go to for the money...

What's your oppinions i've already maxed it twice & payed it of i'm silly with money but really do want good credit.

HoneyAndLemon

Using it and then paying it off in full each month will improve your credit report, as it shows good payment history.

why not ask the cc company to reduce the limit to something you're more comfortable with? a couple of hundred for example, and just buy food/petrol on it, then pay it off.

JoshBee25

The problem is i don't have a car, my insurance was costing me £240 a month with insure the box on a 1999 206. So petrol isn't needed...

My limit is only £500 which is good incase of emergencys but what's the best thing to buy to pay of tops food etc or?

Also even if you make monthly payments which are @ the minimmum repayment or over is that not still good as you're making payments?

HoneyAndLemon

Paying off the full balance looks better, shows good money management. Plus that way you aren't building up a balance, or getting charged interest.

Really you shouldn't buy anything with a credit card you don't already have the money for in your bank account.

JoshBee25

The thing is i wouldn't like to go out and spend the £500 and pay back, i'd rather say for example

T shirt - £30 buy on my credit card go home pay the balance of of £30.

But i meant it's always good to have a balance on incase in emergency i need the money i have access to £500.

HoneyAndLemon

Use the card for everyday things like tops etc. Wait for the statement to come out, then pay it off. Then you have all the limit available again for emergencies etc.

There is no point buying something and then paying it off that day if you want to improve your credit rating.

For example, on the 5th March you buy 2 tops for £50. You get your statement on the 10th March, stating your balance is £100, payment due by 30th March. You pay off the £100 before/on 30th March.

Credit report states you spent £100, then paid off £100. All good.

You dont want this...Buy 2 tops for £50 on 5th March, paid £100 on 5th March when you got home. Get your statement on 10th March, with a balance of 0. Payment date 30th March for 0. No balance, or payments, according to your statement.

Credit report states you spent 0, and paid 0. It only goes by what the statement says.

JoshBee25

Ah tbh i never though of that, it's the best way to do it thanks!

HoneyAndLemon

No problem, it can all be a bit confusing to begin with. At least your starting off earlier than most trying to get your head round it!

JoshBee25

I heard no credit is worst then bad credit, i'd like to have the opportunity in the future to access loans etc if needed.