20 Y.O. Credit Card with Capital One

AshleyNF

Until around 6 months ago my family have always denied me a debit card so I've been walking around and using a cash card withdrawing money whenever I needed it and never bought goods online.

So without their knowledge I got a debit card and I also got a credit card with Capital One (I thought it would be good to improve my credit score as I've never had any debits from my account)

However I tried to apply for a phone contract today (4 times) without the knowledge that being denied only worsens my credit score. I've never had knowledge or credit scores or anything because I've just been brought up being told "Debit cards and Credit cards are bad, never ever ever get them".

So now I feel like a total idiot for not researching any of this before. I'm stuck with this Capital One Credit card account and I'd like to know if I should just cancel it or continue using it and paying it off (I've been using it every month and using around £100 but have always paid it off in full every month).

All I wanted was a phone contract now I feel like I've opened up a whole new cans of worms due to my ignorance!

wwfc_2

Carry on using your cards

Your debit card will always be useful, not sure how people could manage without one!

by spending on your credit card and paying it back each month will show that you can manage your finances and eventually open you to more credit

Don't apply for more credit for a couple of months and make sure you are on the electrol role

AshleyNF

wwfc wrote: »

Carry on using your cards

Your debit card will always be useful, not sure how people could manage without one!

by spending on your credit card and paying it back each month will show that you can manage your finances and eventually open you to more credit

Don't apply for more credit for a couple of months and make sure you are on the electrol role

Really appreciated!
I'll do exactly as you said

thebritishbloke

Unfortunately some people are very naive, but what we do best as humans is trust our parents word as though it is an indisputable fact.

Keep the card, use less than 30% of your limit every month and pay it off in full every month (a direct debit to do this automatically is your best bet).

Check your statutory £2 reports from Experian and Equifax, and sign up for Noddle which is free. Make sure you're on the electoral roll.

With time, you'll be able to get all the best credit deals. If you're wanting a phone contract, try again in ~6 months time.

grumbler

AshleyNF wrote: »

...However I tried to apply for a phone contract today (4 times) without the knowledge that being denied only worsens my credit score. I've never had knowledge or credit scores or anything because I've just been brought up being told "Debit cards and Credit cards are bad, never ever ever get them".
...
All I wanted was a phone contract now I feel like I've opened up a whole new cans of worms due to my ignorance!

Maybe they were right?:think:

Why did you want a contract?
I guess it wasn't a sim-only contract that are pretty easy to get.
If so, are you sure that buying the phone (in fact) on credit was cheaper than buying outright and using on PAYG/sim-only?

It was just a thought...
Please, prove me wrong and tell us that it was sim-only or you could afford the phone, have done your research and the contract was the best option for this phone and the airtime that you really needed.

thebritishbloke

grumbler wrote: »

Maybe they were right?:think:

Why did you want a contract?
I guess it wasn't a sim-only contract that are pretty easy to get.
If so, are you sure that buying the phone (in fact) on credit was cheaper than buying outright and using on PAYG/sim-only?

It was just a thought...
Please, prove me wrong and tell us that it was sim-only or you could afford the phone, have done your research and the contract was the best option for this phone and the airtime that you really needed.

This needs to be stressed. I.e. I upgraded to an iPhone 6+ the other day, bought it outright and stayed on my grandfathered truly unlimited sim-only plan. Yes I have to pay the full £700 up front, but I'll save £400+ over the course of 2 years in comparison to getting the contract I'd need/want.

AshleyNF

grumbler wrote: »

Maybe they were right?:think:

Why did you want a contract?
I guess it wasn't a sim-only contract that are pretty easy to get.
If so, are you sure that buying the phone (in fact) on credit was cheaper than buying outright and using on PAYG/sim-only?

It was just a thought...
Please, prove me wrong and tell us that it was sim-only or you could afford the phone, have done your research and the contract was the best option for this phone and the airtime that you really needed.

The contract was for work. However they won't put the contract under them we've already discussed it.

I can understand why I was denied the phone contract, I'm not angry that I've been denied in any way. I'm more frustrated at myself for not knowing about all this before hand, as I explained earlier I have shut away from everything to do with credit.

I can outright afford the phone as it is now, but what I wanted was the phone+contract.

Please don't misunderstand me, I'm not trying to act spoiled and ignorant! All I plan to do is take heed of the advice given by everyone in the thread and try apply again in 6 months.

thebritishbloke

AshleyNF wrote: »

The contract was for work. However they won't put the contract under them we've already discussed it.

I can understand why I was denied the phone contract, I'm not angry that I've been denied in any way. I'm more frustrated at myself for not knowing about all this before hand, as I explained earlier I have shut away from everything to do with credit.

I can outright afford the phone as it is now, but what I wanted was the phone+contract.

Please don't misunderstand me, I'm not trying to act spoiled and ignorant! All I plan to do is take heed of the advice given by everyone in the thread and try apply again in 6 months.

Don't worry if we come across quite blunt, I think the amount of people that come on here that ignore the good advice that most members provide sort of forces us to be blunt. So long as you follow the advice all over the forums you should be good