Credit card to improve credit score

Student_of_£

Hi,
I'm currently a student and I'm thinking of taking out a credit card to improve my credit rating.
Currently my experian credit rating in 899 (good) I have an active but unused student overdraft, which has been maxed and repaid twice.
I envisage using the credit card to buy myself weekly treats (a spend of £20-£80 p/m) and I have plenty of savings too, so I am pretty sure i won't miss a payment, I think I will have the card for ~9 months and the cancel it or maybe keep it???

Will having a low credit limit (£250-£500ish) and a small spend help me to improve my credit score?

Thanks

BugsyBrowne

Credit ratings are unique to lenders when scoring applicants 'so someone who has managed credit cards & took out loans etc for a long period of time and managed these without missing payments etc would of built up an impressive credit rating.

So you having just an overdraft would put you in a credit card lenders eyes as high risk as there's no proof of you managing credit cards before.

You being a student I would contact the bank you have an overdraft with and ask them about a credit card but if this fails you will have to go down the credit card building route where applying for the likes of cap1 classic or vanquis which will come with very low limits but are good for getting a credit history.

Also people with a history of defaults and discharged BR gets a good score on Experian so I really wouldn't take any notice of this company that doesn't lend money rates you.

But there's also loads of other factors to take in account when being credit scored to.

Student_of_£

It's funny, because when I first reached my overdraft limit of £850 and asked for it to be extended, I asked the customer advisor what to do if my overdraft extension were to be rejected, she said I should look into a barclaycard.... bearing in mind I was asking for on overdraft extension and I only have student loans as my income. At the time that seemed very irresponsable to the bank to offer someone debt, in order to pay debt... so as I have my current account and savings with Barclays, I can't see why they wouldn't offer me a credit card when I'm in the black, but they would offer me a credit card when I'm in the red!?

CLAPTON

Student_of_£ wrote: »

It's funny, because when I first reached my overdraft limit of £850 and asked for it to be extended, I asked the customer advisor what to do if my overdraft extension were to be rejected, she said I should look into a barclaycard.... bearing in mind I was asking for on overdraft extension and I only have student loans as my income. At the time that seemed very irresponsable to the bank to offer someone debt, in order to pay debt... so as I have my current account and savings with Barclays, I can't see why they wouldn't offer me a credit card when I'm in the black, but they would offer me a credit card when I'm in the red!?

you are of course, free to debate the merits of a call centre operative's knowledge of the working of credit systems or you can choose to operate in your own best interests

getting a CC and using it regularly and paying in full each month (preferrably by Direcr Debit) will improve your credit worthiness

CKhalvashi

Either your own bank or Vanquis would be the best ones to ask.

With the latter, however, it's essential to ensure it's paid off at the end of each month.

CK

Student_of_£

The person who advised me to get a credit card when I was overdrawn was the in-branch advisor... but we are talking about Barclays, even though I bank with them I take everything they teel me with a pinch of salt.
I have been banking with them for over 5 years, so they have and idea of how I manage my account. The only bad thing on my credit report was that I hadn't closed my overdraft... so what else can I do to obtain a credit card, would it be worth getting one with like 29.9APR or 34.9APR just to build credit, or do you think Barclays would just offer me a standard credit card?

CKhalvashi

We can't answer that question at all, only the bank can.

There's a possibility you'll get accepted for a decent rate if everything else is in order.

CK