Advice on my credit card please?

BrookesAndrew

Hello all,

I have a credit card with Vanquis. I have had it only since August so not that long. I made my first repayment recently. The interest is very high so my plan is to keep the card for six months and then try and get a better card with has a 0% on purchased or something like that. Is this a good idea or should I keep the card longer? Also I have a direct debit setup on the account but I don't pay it off like that. I just buy things on it and then later on in the month I just pay them off with a debit card payment. Is this a good way to do it and will my credit rating still get better because of this. This is my first credit card and my only credit card. I have a phone contract as well but I read somewhere that they don't really do much for your credit rating. Is this true?

[Deleted User]

The wasy to use the card is to make regular purchases (or things you would buy anyway), wait for the statement and then pay in full before the due date. Whether by DD or manual payment doesn't matter.

If Vanquis is your first card then it will probably take more than 6 months before you are able to get a 0% deal - these are normally for people with good histories. However, one application won't harm, but I wouldn't pitch too high.

BrookesAndrew

Okay thank you.

BrookesAndrew

One more quick question. At the moment I will buy something and then a few days letter I will make a manual payment by card. I keep doing this through out the month. When it actually comes to my statement date I don't have anything to pay. Last month which was my first statement date I had to pay a pound and that was only because I took out cash stupidly! Will this matter and will be credit rating still go up?

[Deleted User]

If you always pay off immediately and therefore have zero balances, then it will look as if you don't use the card, so won't benefit your credit history.

Wait for the statement, then pay off in full by the due date. A full pay DD is ideal for this.

BrookesAndrew

Okay I will start doing this. I have a full paying direct debit at the moment but it wasn't collecting it on the first month because they had to set it up but they are collecting it this month so I will start using that or just after the statement date I will pay it off.

Thank you for your help. Has helped a lot.

Wire

Hi

Its often easy to check your progress on a credit reference agency such as Experain or Equifax
They do charge membership though some do it for 30 day free trial.

So I would suggest that in half a years time you visit these sites and register yourself and then use the tools that they have that have loans recommended for you and they show you the credit cards that you will now be accepted for.

I just helped someone in a similar circumstance and now a year and a half after using a Credit card responsibly they have Tesco clubcard which has a 0% for 16 months plus tesco clubcard points

BrookesAndrew

Okay, thank you for your help.

redpete

BrookesAndrew wrote: »

I will start using [full payment direct debit] or just after the statement date I will pay it off.

You need to check that this will work. Check if the DD will be taken out in full regardless of any other payments you make after the statement has been produced.

molerat

If you have a DD set up for full payment (and it states on your statement that the payment will be taken) it is best to allow that to happen as a part payment earlier can sometimes mean that the full payment amount will still be taken.

BrookesAndrew

I have cancelled the direct debit and I am just going to do it manually after the statement date. I get a text to my phone when my statement is ready so as soon as I get that I will pay it. Thanks.