How to get credit for a credit card?

beth.stephenson2009

Hello everyone,

I am wanting to build up my credit- so wanting to get a credit card. The only thing I have is Vodafone contract- missed my payment once ONLY and had it nearly 12 months.

I also don't really know how they work (please don't call me "stupid" "immature" or some other childish comment- it isn't wanted or needed, find something productive to do with your day!!)

I only want a very small limit (£100 or so) and I will only use it when I actually have money to pay it off a day or two later. Does the interest occur daily, weekly, monthly??

Also can anyone recommend a good starter credit card? I imagine I will have to get one with quite a high interest- although shouldn't be a problem for me as as I said I will pay it off immediately.

BugsyBrowne

Only once to a lender still don't look great.

Try capital one secure card or capital one classic or vanquis.

beth.stephenson2009

Thank you Bugsy browne.

Does anyone know about the capital one classic credit card? I can have a limit up to 1,500 (which i will never use in a million years) and I will use it for pretty much everything- but as soon as the spending is up for the day ring up and pay off the balance. Will i be charged any interest for this?? I mean the max a balance will probably sit there is 12 hours?

InsideInsurance

Credit cards have an interest free period which can be up to 56 days - in reality it is normally in reality X days from the date your statement is produced (normally around 20 - 28 days)

If you do not pay the balance off in full by the date required then you will start accruing interest on a daily basis.

Whilst you can make interim payments credit cards are not set up for you to spend one day and pay it off after a few days. In fact you can have problems if you do this because the requirements around payment being made after the statement date.

You'd be better off using the card how it is meant to be used in the form of putting the money aside each time you buy something and then paying the statement in full each time its received thus avoiding any interest. To make the best of it you can get them to set up a DD with them to take the full statement amount each month thus guaranteeing you get the longest possible interest free period but never pay any interest.

Ideally you would also want more than £100 credit available as available credit and utilisation rate are both factors considered and a very low limit will be a concern plus with a low limit you are likely to have high utilisation which would also be a concern.

Given your lack of history and the fact you have failed to make 9.1% of payments is going to make your options fairly limited. You can try your own bank and they are the most likely to give you a card if you've run your current account well. Alternatively you could try Barclaycard as they do a pre application test to say which card you are most likely to be accepted for. Finally your options are those aimed at the sub prime market which have shocking interest rates but as you say, not a problem if you pay in full each month.

lisyloo

There is no need to pay it off straight away.
For purchases they are interest free provided you pay everything on the statement by the due day.
The best way to do this is to set up a driect debit for the whole amount and let the lender take the payment at the right time.
You need to be careful in the first month before the DD is set up, but otherwise it's a great way as you can never them be late on payment.

As long as you don't take cash or put credit on gambling sites, then purchases (goods and services) are interest free provided they are paid off (and cleared) by the due date.

Direct debit really is the best way to go.

david39

You don't need to pay it off every 24 hours to avoid interest.

Use the card - wait for the statement to arrive - pay the full sum of the statement by the date required and you will pay no interest. The date will clearly be stated on the statement. make sure you allow sufficient time for the payment to go through the banking system.

You only pay interest if you don't pay off the full sum by the date requested on the statement.

If your idea of paying it off after every 24 hours is because you can't trust yourself to keep the money ring-fenced until the statement is due then maybe you are the type of person who should not be contemplating the use of a credit card.

beth.stephenson2009

Sebastian_Bermudes wrote: »

Yes David is absolutely right.If you payoff the next day of shopping, then whats the point of using credit card.

You should wait for your statement and send your full payment before the due date. We've always handled our credit cards like cash, paying each of them in full when the statement comes. You are so wise to consider this.

To build my credit rating. As I said in my original post.

Fingerbobs

beth.stephenson2009 wrote: »

To build my credit rating. As I said in my original post.

I don't think using a credit card like this will work very well as your balance at the end of the month will always be zero, so the reports to the credit reference agencies will always show zero balance. As others have said, you should wait for the statement each month before making the payments.

In any case, transactions usually take a few days to show up on your account. It's not instantaneous.

[Deleted User]

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Sebastian_Bermudes wrote: »

Yes David is absolutely right.If you payoff the next day of shopping, then whats the point of using credit card.

You should wait for your statement and send your full spammylink before the due date. We've always handled our credit cards like cash, paying each of them in full when the statement comes. You are so wise to consider this.

Clever bit of spam there Seb. Almost didn't spot the hyperlink.
Reported, but good effort.