Experian Credit Score

20aday

Tixy wrote: »

Showing responsible use of a credit account helps to build up a credit history and makes it easier for other potential lenders (including mortgage lenders) to assess the risk in lending to you.

Whilst showing payments of service contracts is good, it is not usually viewed as the same as a proper credit account.

Using a credit card sensibly can be a good way to show a good credit history without it costing you any money.


This wouldn't work. You need to wait for the statement to be generated each month, and then make your payment (preferably paying in full each month) - otherwise your credit file could look as though you are not actually using the card.


If you are going to pay in full each month then the interest rate isn't important and ideally you may want to look at cashback/reward credit cards. However for a first card you may be best either applying to your own bank as you are more likely to be accepted by them, or if not then conisder one of the subprime credit cards to start.

BIB: can this have a negative impact on your credit file, out of interest? For a while now as soon as I've charged any amount to my credit card I've transferred the money to my account straight away.

Thanks.

Tixy

20aday wrote: »

BIB: can this have a negative impact on your credit file, out of interest? For a while now as soon as I've charged any amount to my credit card I've transferred the money to my account straight away.

Thanks.

Paying straight away wouldn't have a negative impact, its just that it usually doesn't help build up a credit history if that is what a person is trying to do (as many cards will just report that there was nil balance outstanding at the date of the statement - so it looks like the card is not being used).

20aday

Tixy wrote: »

Paying straight away wouldn't have a negative impact, its just that it usually doesn't help build up a credit history if that is what a person is trying to do (as many cards will just report that there was nil balance outstanding at the date of the statement - so it looks like the card is not being used).

Thank you for the helpful response, Tixy.