First credit card - Luma. Help!!!

*Kat*

So, I have a !!!!!! credit rating that I want to improve.

I have 1 default on my file *sadface* that I can't wait to remove, I got this CC in the hope it will enhance my credit rating for when the default is removed.

So, how do I deal with this? Make small purchases and pay off monthly? What if I use this to pay for my petrol every month, or grocery shop?

I'm just looking for GOOD ways to use this card and build my credit

leeroy2009

use the credit card for whatever you want, just pay in full when statement arrives, make sure you have a direct debit set up for at least the min payment, and pay the remainder in full, or a dd for payment in full.

*Kat*

Is it better to pay in full or is min payment okay? (For credit building?)

leeroy2009

well if you don't pay in full you will be charged interest on your next statement, and id hate to think what interest rate they have gave you.

so pay in full and avoid interest or make min payment and be hit with interest the following month.

you should at the very least have the direct debit set up to cover the minimum payment due, or if you make sure you will have enough money in your bank account when the statement is due, set the direct debit to payment in full.

you can always make manual payments on top of any direct debit you have in place.

I personally always have the minimum payment setup on the direct debit, and manualy pay extra amounts, and I have nothing but green ticks on my credit report, and every 6 months or so they up the limit on my credit cards

leeroy2009

you get a green tick if you pay the min payment or pay in full, aslong as its on time etc.

[Deleted User]

Pay in full. Minimum payments look bad on your file.

If you can't pay in full, pay as much as you can.

hannah4101

Hi!

I learnt the hard way (as I'm sure many others reading this did!).. Buy your petrol on it (or whatever you want) and set up a direct debit to re-pay in full. Try and do this at least 5 days pre your due date!!!

They WILL send you a letter to say 'good news! we're increasing your limit to £xxxx'.. Do not be tempted to over spend though!! Stick to what you've been doing.

Good luck girl!

leeroy2009

Deleted_User wrote: »

Pay in full. Minimum payments look bad on your file.

If you can't pay in full, pay as much as you can.

how do min payments look bad on your file? I have no "bad" markers for any min payment on any of my credit cards?

and has had no bearing on the recent 3 flex direct accounts and 1 123 account I have opened in past 2 months, not to mention the 2 new credit cards I now have in my wallet.

grumbler

leeroy2009 wrote: »

use the credit card for whatever you want,

I would exclude ATM withdrawals from this list.

leeroy2009 wrote: »

how do min payments look bad on your file? I have no "bad" markers for any min payment on any of my credit cards?

It's just marks, not 'bad marks', but reportedly they detrimentally affect credit rating.

leeroy2009

yes grumbler is correct, do not ever be tempted to withdraw cash on that credit card or any other credit card for that matter.

[Deleted User]

leeroy2009 wrote: »

how do min payments look bad on your file? I have no "bad" markers for any min payment on any of my credit cards?

Minimum payments are visible to other lenders on your file. While there may be some that would consider this makes you a protifable customer, most see it as a sign of higher risk.