New to credit cards....

gc28

I have just received my first credit card...

I applied for it to make sure i could get the best credit score possible for the future,

I'm thinking of making a larger purchase on it and repaying an amount each month, However I'm not sure if that will affect my credit score negatively?

Any help would be appreciated!

grumbler

gc28 wrote: »

I'm thinking of making a larger purchase on it and repaying an amount each month, However I'm not sure if that will affect my credit score negatively?

No, it will not affect negatively your credit rating. However, it will affect negatively your finances unless it is (unlikely for the first CC) a card with 0% introductory offer on purchases.

The beauty of CCs is that if you don't use them for cash withdrawals and pay the balance in you full every month, then, regardless of APR, you don't pay any interest. Do you really want to pay it on the top of your 'larger purchase'? With some exceptions, a CC is not the cheapest way of long-term borrowing.

anoncol

Is it because you can't afford the big purchase full repayment?

bengalknights

No it wont have any negative impact on your record, it will however show others what your spend is like etc

unphased

gc28 wrote: »

I have just received my first credit card...

I applied for it to make sure i could get the best credit score possible for the future,

I'm thinking of making a larger purchase on it and repaying an amount each month, However I'm not sure if that will affect my credit score negatively?

Any help would be appreciated!

As others have said the interest rate on credit cards is way too high to make purchases and pay off a little each month. You have fallen in to the temptation that once you have one it is all too easy to use it and before you know it you are in debt and paying rip-off interest every month. If you have just acquired one genuinely to improve your credit score then put it in a drawer and don't use it. If you want to make a large purchase and pay monthly look at unsecured loans.

gc28

Thank you for all the help guys,
I can afford to buy said item via cash but was thinking of spreading the payments and having a CC it was just an idea!

If I do just put my CC away and don't use it I'm pretty sure that will just keep my rating as it is and won't improve it, My plan was to use it to pay for small items each month and pay it off in full via direct debit...

greenlightluke

I use my CC for every purchase no matter how small and just pay it off at the end of the month. I like to think my credit worthiness is substantially better than it used to be.

CC's were a scary prospect when I first took one but they are a great tool when used correctly.

anoncol

If you can afford to pay it all then I would buy it on CC but pay off the entire balance.