advice please on credit rating

kylelfc

I don't have much knowledge with credit cards \ scores. Basically I am planning on buying a new TV for around 5-600 pounds. I want to pay for this monthly so I am going to get an interest free credit card and pay it off on there. Not missing no payments etc.. I am just wondering what effect this would have on my credit score. I've never had a credit card before and have a pretty decent credit score at the minute. Any help would be appreciated. Thanks

[Deleted User]

You probably won't get a 0% card with no credit history, as you'll be seen as higher risk.

You could make one application but if that fails, get a sub prime card and use it well for 6-12 months, then perhaps try for something better.

wpearson92

A credit card will help improve your credit report as it shows responsibility in paying back credit, as long as you dont miss any payments. Just make sure before applying for loans/Mortages etc... you arent close to your limit on the card as this could coount against you

kylelfc

Thanks for the replys. I wasn't sure if by not paying my credit card off in full straight away would go against my credit score. Or whether it would still build due to me paying the money back gradually every month until it's payed off

DCFC79

kylelfc wrote: »

Thanks for the replys. I wasn't sure if by not paying my credit card off in full straight away would go against my credit score. Or whether it would still build due to me paying the money back gradually every month until it's payed off

Its not credit score you focus on but your credit history.

Candyapple

There is no such thing as a credit score.

More important questions that will factor into you being accepted for a 0% card are:

Are you on the electoral roll?
Do you have any bank accounts/other cards/loans/mortgages?
Any defaults/late payments/CCJs?

If you've never had credit before, as zx81 stated, you'll probably be best suited for a subprime card first to build a credit history so lenders know you can handle credit responsibly and then wait 6 months or so before applying for a 0% card.

kylelfc

Ok I will look into subprime card. But let's say I do get the 0% card, how would paying something back monthly over for example 12 months effect my credit rating?

Candyapple

kylelfc wrote: »

Ok I will look into subprime card. But let's say I do get the 0% card, how would paying something back monthly over for example 12 months effect my credit rating?

As long as you set up a DD to pay the minimum off monthly and didn't make any late payments, it would only benefit your credit rating as you'll be seen as handling credit responsibly.

Just make sure that before the 0% period ends, you have enough funds to clear the remaining balance entirely, otherwise it will roll over gathering interest and will likely negate any saving you made over the 0% period.

DCFC79

kylelfc wrote: »

Ok I will look into subprime card. But let's say I do get the 0% card, how would paying something back monthly over for example 12 months effect my credit rating?

It won't affect your credit rating as it doesn't exist.

I don't believe it will have any impact.

kylelfc

I managed to get a 0% card on purchases for 14 months.. so basically does this mean I can buy my telly for £600, then pay back £43 a month for 14 months which will equal £600. All interest free as long as I don't miss no payments?

andyfromotley

yup thats exactly what you do.