Where to start...

flathunter

I'm currently saving up for a deposit. I'm fortunate enough to be able to live at home so I have very little in the way of outgoings and should have a 10% deposit in approx 8 months. My question is really how do I best use that 8 months to give myself the best chance of getting a 90% mortgage as I know they are not that straightforward to get now?

I've checked out my credit report and there is nothing dodgy on there, no missed payments or anything, but I think my main problem might be that I've not actually had that much credit apart from authorised overdrafts on current accounts and a mobile phone contract. Should I really be getting a credit card? I've always been taught they were basically the devil!

Sorry if this has been asked loads of times before, I could see lots of info about good credit cards to get if you have 'bad' credit rating... though maybe no credit is just the same thing.

Thanks in advance.

[Deleted User]

I would definitely get a card, use it regularly and pay off in full each month.

You're right that no history is not much different from bad history. Lenders effectively ask themselves "do we think this person will repay us?" The answer in your case will be 'don't know' so you need to start off slow with an aqua or a cap one card for example.

Credit cards are the devil if you're addicted to buying shiny things you can't afford. But if you use them to buy things that can afford and would buy anyway (eg food), then they're your best friend and will shower you with cashback and other gifts in the years to come.

CLAPTON

If you feel unable to use a CC to buy things you any way buy, like petrol/food etc and then pay in full each month, then a CC is not for you.
However, correctly used it will enhance your credit rating.
Best to stop using an overdraft and avoid any new debts.

flathunter

Thanks. Instinctively it feels wrong to be spending money I don't have and harder to keep track of spending but I had a feeling that would be the answer I would get!

I've not really USED my overdraft since I was a student but like to keep a small one for emergencies - paycheques not clearing etc.

unimaginative_user_name

flathunter wrote: »

Thanks. Instinctively it feels wrong to be spending money I don't have and harder to keep track of spending but I had a feeling that would be the answer I would get!

I've not really USED my overdraft since I was a student but like to keep a small one for emergencies - paycheques not clearing etc.

Yours is not a bad instinct to have but if you're ok with internet banking you can keep track of credit card spending as you can check your balance on line. You could set yourself a cc spending limit of say £100 a month and just make sure you've got that in your current account whenever the payment is due. Check your cc account on line every couple of days and once you reach your self-imposed limit put the card in a drawer until the next month. You will then build your credit rating and showva track record of managing credit responsibly.