Should I get a credit card? (mortgage related)

scottishgirl87

I know there is a credit card forum but I feel my query is better off in here seeing as the only reason I'm considering a credit card is in regards to my chances of getting a mortgage.

My boyfriend and I have been looking into buying a flat this year, we have a DIP already and around a 10% deposit but we haven't seen anything we like, yet. Anyway, apart from my mobile phone contract which I've had for several years with O2 I've had absolutely no debt or credit whatsoever. My boyfriend is in much a similar position but has a student loan debt.

I've checked both of our credit reports and they appear ok. I know these aren't the be all and end all when applying for a mortgage but I'm worried that we'll fall into the bracket of having no credit history and as such be turned down for a mortgage when the time comes.

Having never needed, or wanted, a credit card before I'm now considering getting one but I'm not sure if I'm barking up the wrong tree. I'd be looking at getting one with 0% interest and at the moment I think the only possible use would be to pay for my car insurance (due for renewal in August) which is usually £200-£300 annually and then obviously pay this off as soon as, just to prove I am "credit-worthy". The credit card will then be kept for emergencies only.

However, I'm not sure if I've left it to the wrong stage to get a credit card as I'm worried if I make a mortgage application too soon after that it'll affect it anyway.

Should I get a credit card or just leave it?

betmunch

I think this depends on when your mortgage application is going in?

If its immenent then no, dotn bother with a credit card.

If its 3,6,12 months away, then I personally would go for it.

The problem is theres no set rule.

scottishgirl87

betmunch wrote: »

I think this depends on when your mortgage application is going in?

If its immenent then no, dotn bother with a credit card.

If its 3,6,12 months away, then I personally would go for it.

The problem is theres no set rule.

That's partly the problem, as we really don't know. We have no viewings or anything scheduled at the moment as we haven't yet seen anything that we like and is in our price range but that's not to say that something new could come on the market tomorrow.

paulmapp8306

As stated - if your doing them mortgage thing fairly soon (weeks) I wouldnt bother, if longer its worth it.

I wouldnt go for 0% necessarily either TBH, your not going to use it for credit anyway so the % wont matter.

Id look at something like a Santander 1,2,3 card. it costs £24/year BUT you get cashback on purchases. 1% on all supermarket spends, 2% on department stores and 3% on petrol. ive made my £24 back in 2 months.

Clear it every couple of weeks (as youll get a £500 limit) so you never pay interest, you build up your "credirt useage history", and you catually save money.

If you dont want a "pay for card" there may be others with cashback offers - and ultimately you dont want anything outstanding .... ever. you just need a history of using the credit then paying it off in full, so dont worry about the interest rate as such.

kingstreet

Get card.

Use if for normal expenses.

Pay it off on receipt of monthly statement.

You don't pay interest this way and if you pick one with a cashback, you'll make a little on top too.

The_J

Probably wouldn't bother. Make sure you're on the electoral roll.

Thrugelmir

Saving regularly with a mortgage lender will have more influence on the outcome. Particularly if its a smaller regional building society.

Amongst the mainstream lenders. Both Halifax and Nationwide offer schemes to FTB's with monetary incentives to save with them.