I used the MSE soft search and got accepted!

RoverT

This is my first ever credit card, wanted to get one for a while to build up my credit rating so kudos to Martin. :beer:

It's the capital one. Plan is to use it to buy stuff i do anyway and use the CC to pay it off to build up my credit. I set up a direct debit with a set monthly amount.

So how long should i keep the card before looking at transferring? Should i wait for my limit to increase a couple of times first?

Which would be a good card to switch to once my credit score has improved for someone with a low income?

Thanks.

DCFC79

Your not improving your credit score but your credit history/file, lenders don't see the score/rating.

grumbler

RoverT wrote: »

....wanted to get one for a while to build up my credit rating so kudos to Martin. :beer:

It's the capital one. Plan is to use it to buy stuff i do anyway and use the CC to pay it off to build up my credit. I set up a direct debit with a set monthly amount.

C1 is an expensive card for borrowing, and the interest will be charged if you don't pay the balance in full every month.
If your intention was to build the credit history, there is no point in paying for this.

Which would be a good card to switch to once my credit score has improved for someone with a low income?

The one that doesn't cost you anything (like C1 if used correctly) and pays you cashback on your spending.

amfan

I did exactly that to build my credit. I was going from no credit history at all to hopefully being able to secure a mortgage within a couple of years. I got a capital one credit card and a mobile phone contract. I used the credit card to buy the things I would buy anyway and pay it off it full. I'm pleased to say that all went to plan, my credit history gradually became something that lenders would be happy to see and my mortgage went through 6 months ago.

As for upgrading the credit card.. I haven't honestly felt the need to yet. If I get a credit card with a lower interest rate will I be tempted to put a large payment on there and then have a massive debt to clear? And from there will I think I might as well buy something else, I'm already in debt?

Obviously, how you decide to work your credit is entirely up to you. But do you really want to build your credit rating up just to get a new card and smash it till you ruin it?

RoverT

grumbler wrote: »

C1 is an expensive card for borrowing, and the interest will be charged if you don't pay the balance in full every month.
If your intention was to build the credit history, there is no point in paying for this.

The £50 is an arbitrary amount but i'll basically spend £50 each month on the card and repay it on the dd unless i'm misunderstanding something.

grumbler wrote: »

The one that doesn't cost you anything (like C1 if used correctly) and pays you cashback on your spending.

Don't worry, it will be.

I know there's cashback, perks etc. I guess the thing to do would be use the soft search again and see which cards came up as obviously there are different factors involved.

RoverT

amfan wrote: »

I did exactly that to build my credit. I was going from no credit history at all to hopefully being able to secure a mortgage within a couple of years. I got a capital one credit card and a mobile phone contract. I used the credit card to buy the things I would buy anyway and pay it off it full. I'm pleased to say that all went to plan, my credit history gradually became something that lenders would be happy to see and my mortgage went through 6 months ago.

As for upgrading the credit card.. I haven't honestly felt the need to yet. If I get a credit card with a lower interest rate will I be tempted to put a large payment on there and then have a massive debt to clear? And from there will I think I might as well buy something else, I'm already in debt?

Obviously, how you decide to work your credit is entirely up to you. But do you really want to build your credit rating up just to get a new card and smash it till you ruin it?

Great, that's the idea. I've got some credit history but my income is the issue and i think that factored into the cards that eligibility check brought up.

Really didn't expect to get it but it's a foot on the ladder and i can build a credit history for lenders in the future so it's great to hear from someone who's done what i want to.

I thought most people switched to 0% balance transfer cards to be able to make bigger purchases without incurring the interest a card like C1 would incur?

jamesd

RoverT wrote: »

So how long should i keep the card before looking at transferring? Should i wait for my limit to increase a couple of times first?

One factor that tends to increase credit ratings is having credit accounts that have been open for longer times. If you were to get a new card and immediately cancel this one, your credit scoring would end up being lower, not higher, due to the short history of the open account.

Wait six months or perhaps a year then apply for another card. Not one of those with the longest purchase or balance transfer deals that are likely to be the most fussy.

Same again in another six months or a year.

Once you have a couple of years of history for the newer cards it's OK to close the first one.

You know that this is a starter card but all other potential lenders sees is that it's a credit card, your credit limit and your repayment history. They don't see even the brand of the card issuer, let alone the specific card product name.

RoverT wrote: »

Which would be a good card to switch to once my credit score has improved for someone with a low income?

Depends what you want to do with the card. If you want to use it for a single large purchase to spread the repaying over several months without paying interest a 0% for purchases card would be best. Or maybe to spread out the cost of Christmas or a holiday that you would spend the same amount on anyway.

0% balance transfer cards are really for people who've built up a bigger balance than they want to clear, or who are stoozing. That's a risky position for a person on a low income to get into because you may not be able to afford to repay quickly if you can't get another balance transfer offer. Low income and limited credit history mean that you need to be cautious for a few years at least.

Credit is handy and can be profitable but you always need to ensure that you'll be able to repay the money in a reasonably time if you don't get new deals.

chanz4

I left capital one years ago, they don't offer any deals to long term customers or even care when you leave

Anthorn

RoverT wrote: »

ncrease a couple of times first?

Which would be a good card to switch to once my credit score has improved for someone with a low income?

Thanks.

There are a lot of fish in the sea. There are a lot of 0% offers for purchase, balance transfers and transfers if you can get it. Personally, I like the MBNA low rate Mastercard which is a good all-rounder at 6.5% APR variable for purchases, transfers and balance transfers, no fee and it's not time limited like the 0% offers. I got one at 11.9%. MBNA also has their soft search which is in fact compulsory.

RoverT

jamesd wrote: »

One factor that tends to increase credit ratings is having credit accounts that have been open for longer times. If you were to get a new card and immediately cancel this one, your credit scoring would end up being lower, not higher, due to the short history of the open account.

I wasn't aware you could lower your credit scoring taking out a new card; is it the same with building and debt and transferring balances to new cards?

jamesd wrote: »

Wait six months or perhaps a year then apply for another card. Not one of those with the longest purchase or balance transfer deals that are likely to be the most fussy.

Same again in another six months or a year.[/QUOTE]
Thanks, exactly why i was asking. I figured it would be 6 months to a year as i'd need to build my credit history anyway before i could consider getting a card with a lower interest rate and cashback etc.

jamesd wrote: »

Once you have a couple of years of history for the newer cards it's OK to close the first one.

Cheers.

jamesd wrote: »

You know that this is a starter card but all other potential lenders sees is that it's a credit card, your credit limit and your repayment history. They don't see even the brand of the card issuer, let alone the specific card product name.

Great to know, didn't realize that.

jamesd wrote: »

Depends what you want to do with the card. If you want to use it for a single large purchase to spread the repaying over several months without paying interest a 0% for purchases card would be best. Or maybe to spread out the cost of Christmas or a holiday that you would spend the same amount on anyway.

Yeah 0% interest is what'd i'd want or very low interest rates.

jamesd wrote: »

0% balance transfer cards are really for people who've built up a bigger balance than they want to clear, or who are stoozing. That's a risky position for a person on a low income to get into because you may not be able to afford to repay quickly if you can't get another balance transfer offer. Low income and limited credit history mean that you need to be cautious for a few years at least.

Plan is not to be on a low income for much longer, i was in fact waiting till i was in a better position financially to get a CC but i can start building my credit history now which is great especially if it could take a few years to build it up. Wasn't aware of stoozing though but i have been wondering what ways you can make a CC work for you, aside from building your credit.

jamesd wrote: »

Credit is handy and can be profitable but you always need to ensure that you'll be able to repay the money in a reasonably time if you don't get new deals.

All that stuffs for the future, just happy to have the card so i can build my credit. I know i'm a good risk but i've been in that catch 22 of not having much credit history and being able to build it.

All great info anyway, cheers. :T

RoverT

chanz4 wrote: »

I left capital one years ago, they don't offer any deals to long term customers or even care when you leave

Yeah it seems like there aren't many incentives for staying with C1 which is part of the reason i was asking. I'll switch but when it's the right time etc.