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Worth it?

I have no debts (other than pre-1998 student loans) and have saved 20k ISA (Santander) plus 2k in high interest current account (Nationwide) plus a Natwest account for normal spending.

Several years ago, I declared bankruptcy (a CCJ too) due to bad investment and recession but the record has been erased from my credit file since last year. My current credit rating looks OK with mobile contract and obviously all with green "marks".

I used the Cashbuilder thing for a year which ended in December 2014.

I am looking to book a holiday in Far East later this year and I am thinking about applying for a 0% credit card. I obviously could fund this easily in cash but in the interests of improving my credit rating further (spreading the cost hurts a little less too!)

Is it worth applying for one?

I would really love to get a Santander 123 credit card but I am a thrifty spender and a big saver!

I have worked out that the total cost would be £2,500.

Comments

  • planteria
    planteria Posts: 5,321 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    i would say 'yes' apply for a credit card.. and i would use one that generates points/cashback for as much of your spending as possible, with a Direct Debit set up to clear the balance in full each month.
  • It is certainly not going to hurt having a credit card reporting on your file, and if you get one that gives you cash back/points for spending that is also an incentive.

    Sound like you are very prudent with your money these days. Just make sure you always make the minimum payments on time and you will have absolutely nothing to worry about.

    Good luck.
  • So sorry for the delay - I have had internet problems plus unwell!

    Thank you for your replies.

    The credit cards that you two describe isn't 0%, right? And "clearing balance" means use card for a month and clearing it by next month - in which case, I assume no effect on my credit rating.

    Sorry for newbie questions - I have never had or needed a credit card before!
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    newuser78 wrote: »
    And "clearing balance" means use card for a month and clearing it by next month - in which case, I assume no effect on my credit rating.
    It would have an effect on your credit files - a positive one.
  • Pincher
    Pincher Posts: 6,552 Forumite
    1,000 Posts Combo Breaker
    If you are over 50 years old, check out the Saga card. The good bit is no overseas charges. 0% Purchase for a few months, too.


    They don't like you having too many other credit cards.
    I had to cancel other cards in order to qualify.
    Once you get it, you can apply for more.
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