Does it matter which credit card you have to improve credit score ?

kteara

Hi. I currently have multiple bank accounts but my main current account is with Halifax. I would like to have a credit card purely for improving my credit score. With this purpose in mind, does it matter which credit card I open? Would it be best to open a Halifax credit card or will it not matter?

Thank you for reading

20aday

kteara wrote: »

Hi. I currently have multiple bank accounts but my main current account is with Halifax. I would like to have a credit card purely for improving my credit score. With this purpose in mind, does it matter which credit card I open? Would it be best to open a Halifax credit card or will it not matter?

Thank you for reading

How long have you banked with Halifax for?

grumbler

The lenders don't see what card it is in your credit history. They see the limit (and APR?).

That said, if it's your first credit card, you won't have much choice. Typically, it's either a card from the bank you have your current account with or one of Bad-credit Credit Cards

Herbalus

kteara wrote: »

I would like to have a credit card purely for improving my credit score. With this purpose in mind, does it matter which credit card I open?

For building a good credit file it will not make a difference which credit card you have - the key idea behind your credit file is for lenders to see you have a history of borrowing (spending) and repaying. If you repay in full every month, most cards will be pretty much identical for you.

The question is which card you're likely to get if your credit file isn't in good shape or doesn't have a lot of history. For a first card, the advice is often to go to your bank and ask them. If not, then go for a sub-prime card.

kteara

Thanks for the replies. I've heard some pretty negative reviews for Halifax but my only other options are capital one cards. Which one will be better ? The one that gives me the biggest limit?

CLAPTON

kteara wrote: »

Thanks for the replies. I've heard some pretty negative reviews for Halifax but my only other options are capital one cards. Which one will be better ?

no reason not to try for halifax as you are already a customer

from a credit history point of view it will make no difference : just make sure you use the CC regularly, pay in full and never miss a payment (set up a DD to ensure no problems)

manami_mnm

grumbler wrote: »

They see the limit (and APR?).

I don't believe that they see the APR.

kteara

I was told if you pay 75-80% this helps build credit more than paying off in full. Is that true ?

grumbler

Absolutely untrue, although some CC companies may prefer customers not paying CC balances in full. Even if this is the case, it's hardly worth wasting money on trying to look more appealing to such lenders.

madteapot

I started with £250 credit on capital one 4 and half years ago with pretty bad credit history of a CCJ for abandoning a contract. But I maintained it through out and have a pretty decent credit history and high credit limits one few different credit cards. Just make sure never miss the minimum payment. you don't have to pay full amount every month but it is good to clear up the pending balances and start with full credit once in a while.

dresdendave

setu_desai02 wrote: »

I started with £250 credit on capital one 4 and half years ago with pretty bad credit history of a CCJ for abandoning a contract. But I maintained it through out and have a pretty decent credit history and high credit limits one few different credit cards. Just make sure never miss the minimum payment. you don't have to pay full amount every month but it is good to clear up the pending balances and start with full credit once in a while.

Surely the point of using a CC to improve a credit rating is that it needn't cost you a penny, unlike a small loan or similar. To avoid any costs it is essential to pay it off in full every month. Just purchase something you normally buy, fuel or supermarket food shopping for example, then pay in full after it has appeared on your statement.