CC to boost credit score

KRaikkonen

Hi MSE,

I am just posting here to get some advice on getting my first credit card. Currently I only have a debit card, but with my credit report getting more and more important I am thinking of ways to enhance my report for the future when I need it.

So my plan is; get a credit card with my bank (Santander), and just initially use it for small monthly payments which I can comfortably afford, such as paying for petrol (say £40-60 per month). I would then pay this off straight away each month as to avoid avoid the interest.

Does this sound like a good idea or not

Thanks, my bad if this is a stupid idea!

ricky_v

KRaikkonen wrote: »

Hi MSE,

So my plan is; get a credit card with my bank (Santander), and just initially use it for small monthly payments which I can comfortably afford, such as paying for petrol (say £40-60 per month). I would then pay this off straight away each month as to avoid avoid the interest.

Does this sound like a good idea or not

Sounds like a good idea to me. After a year or two then you can dabble with cashback cards or 0% cards. With a proven history of managing credit cards (and making a few quid from them) applying for proper credit like a mortgage shouldn't be a problem.

Archi_Bald

KRaikkonen wrote: »

I am thinking of ways to enhance my report for the future when I need it.

Have you had a look at your credit files? What do they say?

KRaikkonen

Archi_Bald wrote: »

Have you had a look at your credit files? What do they say?

Yes I have, off the top of my head one of the negatives was actually regarding my age and that there wasn't a significant amount of history of me keeping up regular payments; this is purely due to the fact that I only have a few dd set up, even though I have never missed a payment of any kind over the last few years.

This is why I thought a cc with small payments would be a good idea to start off with to prepare myself for the future?

Thanks ricky_v for the reply!

Tryingtomoveout

Hi

It is a very good idea. Make sure you set up a direct debit to pay the balance in full each month.

KRaikkonen

Tryingtomoveout wrote: »

Hi

It is a very good idea. Make sure you set up a direct debit to pay the balance in full each month.

Hi, thanks I think I will do it then

Also, just to make sure; I currently have a debit account with Santander, and plan to get a credit card with santander also. Would it be fine for me to set up a direct debit from my online debit account to pay for the credit card bill each month, I.e. there is no restriction against doing this from one account to another

Thanks.

bengal-stripe

KRaikkonen wrote: »

Would it be fine for me to set up a direct debit from my online debit account to pay for the credit card bill each month, I.e. there is no restriction against doing this from one account to another

No restrictions whatsoever.

Once you've been accepted for the CC, ask for a DD to come out of your account (either minimum or full balance). Then your monthly statement will show how much money will be taken on what day (some 3 weeks later than the statement date).

DD might not be in place for the first statement (it won't say that a DD will be taken at a certain date), then you'll have to pay manually.

KRaikkonen

bengal-stripe wrote: »

No restrictions whatsoever.

Once you've been accepted for the CC, ask for a DD to come out of your account (either minimum or full balance). Then your monthly statement will show how much money will be taken on what day (some 3 weeks later than the statement date).

DD might not be in place for the first statement (it won't say that a DD will be taken at a certain date), then you'll have to pay manually.

Ok thanks, everything sounds good. I will be applying for one very soon then and hopefully get accepted 😊 thanks for the help everyone!

RoryRory

If they knock you back for a credit card try applying for an overdraft and after a few months try applying for a credit card with them again, You don't have to use the overdraft they just need to know that you're sensible and aren't maxing it out and staying there every month!