Help with my first Credit Card. How does it work?

Surfeit75

forgotmyname wrote: »

You should setup a direct debit for the minimum payment just in case you forget.

If a direct debit failed you would be in ??? What do you think a missed payment on your credit card will do?

This is true you've made me reconsider a bit but I do prefer manual payments as a preference.

My credit score is bad but If I use this CC sensibly and pay back every month for at least 6 months are Capital One likely to increase my limit? Will it be longer I have to wait, as I know you just can't request an increased limit.

And when will it start showing an improvement on my credit file?

MrSilk

Surfeit75 wrote: »

This is true you've made me reconsider a bit but I do prefer manual payments as a preference.

My credit score is bad but If I use this CC sensibly and pay back every month for at least 6 months are Capital One likely to increase my limit? Will it be longer I have to wait, as I know you just can't request an increased limit.

And when will it start showing an improvement on my credit file?

Took capital one a year to increase mine.

About 12 -18 months.. Longer the better tbh

andyuk01

Surfeit75 wrote: »

This is true you've made me reconsider a bit but I do prefer manual payments as a preference.

My credit score is bad but If I use this CC sensibly and pay back every month for at least 6 months are Capital One likely to increase my limit? Will it be longer I have to wait, as I know you just can't request an increased limit.

And when will it start showing an improvement on my credit file?

Set up a DD for the minimum payment anyway, with a £200 limit you are talking about a fiver max - you can still make a manual payment whenever you want

There is a trap that a lot of people who make manual payments fall into where they make a payment before a statement has been generated and the payment is attributed to the previous month, they then miss a payment without realising, lots of threads on it

Anthorn

There is a case for not clearing the full balance every month and that's if you want a credit limit increase. Look at it from the point of view of the bank: They have to cover the biggest part of credit limits with hard cash. If you don't use your limit every month and you clear the balance every month then quite simply you don't need a limit increase.

For example look through the topics on MSE related to the Aqua card and you'll find they are notorious for not increasing limits which stick at £200. However I started my Aqua Advance with a £200 limit and I've just received the second limit increase in less than 8 months and my limit is now £2,100. The difference is that I don't clear my full balance every month and I let them make a bit of profit in the form of interest. But I also pay every month on time, mostly as soon as the statement is produced. I don't wait till the last minute.

You have the play the credit card game and part of that is recognising that banks and credit card companies provide you with a credit card so they can make some profit in the form of interest. They are not charities.

Limit increases also look very good on your credit file at the CRAs.

There are also two parts to the assessment of your credit card application and your initial credit limit. One part is of course your credit file but the other part is the bank's potential for making a profit from you. But that's another story.

Maestro.

^ I clear the balance in full every month and got three increases from vanquis! I also got my CL doubled from barclaycard by internal scoring only and I pay in full. So yeah...

MrSilk

Maestro. wrote: »

^ I clear the balance in full every month and got three increases from vanquis! I also got my CL doubled from barclaycard by internal scoring only and I pay in full. So yeah...

Show off!

Anthorn

Maestro. wrote: »

^ I clear the balance in full every month and got three increases from vanquis! I also got my CL doubled from barclaycard by internal scoring only and I pay in full. So yeah...

That's Vanquis for you: I've hardly used mine and I have a gold card with a limit of £1,750. Don't know where the other £250 of the limit is but hey I don't need it anyway. But I think in the main those cards which issue credit responsibly will look at what you're spending and what you're paying and then decide on limit increases from that.

LuSiVe

Surfeit75 wrote: »

And if I were to withdraw cash would I pay daily interest (2.53%) on the amount withdrawn until I get the next statement?

The 2.53% isn't a daily amount, it's monthly.

Surfeit75

LuSiVe wrote: »

The 2.53% isn't a daily amount, it's monthly.

Really? On Cash Advances?

That doesn't sound too bad then. If I needed £50 in cash to tide me over I would only pay approx £1.26 back in interest, is this right?

Sounds too good to be true on the card I've got. A LOT more preferable than payday loans and such things.

Surfeit75

My payment due date is next week (4th) but I have not received a statement yet. Nothing in the post and it is not available online either. Should I just make a payment to clear the balance?