Credit Card newbie

bobblebob

So ive never had a credit card in my life, and was going to apply for the Halifax Clarity card mainly just to improve my credit rating, and to use when im abroad. Got a few questions about it tho:

1) Is it a case of looking online, seeing the repayment date and just transfering money from another account to to pay off the credit card?

2) Is there an inactive period? Its unlikely mine will get used much, maybe once or twice a year.

Thanks

YorkshireBoy

1) You could do, if your statement doesn't arrive for whatever reason.

2) Card providers regularly review accounts for inactivity. Whether they'll close an inactive account or simply cut the limit depends on the issuer.

Unless you already bank with Halifax you may find it difficult to obtain this particular card due to your lack of history with credit card management.

bobblebob

Yea i already bank with Halifax. What is the general time period theyclass as inactive?

YorkshireBoy

bobblebob wrote: »

What is the general time period theyclass as inactive?

I have no idea, but would guess annually...or 6 monthly at worst.

However, why not use it every month (for things you usually use a debit card for)? If they're still doing the Rewards version, a £300 per month spend will get you £60 a year at £5 per month, equating to 1.6% cashback.

bobblebob

Good point will look into it, thanks

JournalGirl

It's usually 13 months for a credit card to be classed as inactive, and the DD etc to be cancelled. Using it once or twice a year should be fine, although the suggestion of using it for other things and paying it off each month is good (maybe just for something like petrol..?)

For payment, set up a direct debit, then you will never get a late payment charge. (Either pay the minimum payment on DD, and top up the rest yourself depending on available funds, or if you can pay it on full every time, set the DD to pay the full balance)

YorkshireBoy

JournalGirl wrote: »

It's usually 13 months for a credit card to be classed as inactive, and the DD etc to be cancelled.

I'm aware of the (typical) 13 month/400 day dormancy period on DDs, but do you have a source for the card being the same period?

RayEthell13

Now that you are going to apply for a new credit card and choosing Halifax Clarity card to improve your card rating, please compare it with other credit cards in the same category and a kind of it. It usually happens that there are same services offered but may vary with their charges of those services. You may find other card better in some or other points than the one you have chosen.

Regards,
CreditCardAustralia,
creditcardsaustralia.com.au