First time credit card

grumbler

chriz1 wrote: »

One thing that confuses me it, you have to set up a direct debit for the minimum amount per month correct?
But I plan on buying something on it and then later that day paying off the full amount I just bought.
So how does the DD work then ?

Don't make things more complicated than they actually are.
Take advantage of up to ~50 interest free days on purchases: set up a DD for a full payment, not minimum, and pay once a month by the DD. If the limit is small just make sure that you stop spending when the balance gets close to the limit.

King_Of_Fools

chriz1 wrote: »

So this is where you could get caught out?
Would it be a good idea then to use a separate bank account, purchase something and transfer that amount into the account that the direct debit is totalling upto that way I can be sure the amount need pend to pay the CC bill is in the account without fail?

If that helps you budget then that would be a good idea (assuming you set up a direct debit for the full balance). If you put it in a savings account you will also earn a little interest over the month.

Ben8282

chriz1 wrote: »

One thing that confuses me it, you have to set up a direct debit for the minimum amount per month correct?
But I plan on buying something on it and then later that day paying off the full amount I just bought.
So how does the DD work then ?

If you have never had a credit card before it is my personal opinion that you are unlikely to be accepted for any of the major supermarket cards.
Having a credit card and paying it in full every month should look good but why the big concern about your credit rating? What are you planning to apply for (other than the Tesco card)? Your credit score may initially drop as a result of opening a new credit account but will then improve as a pattern of payments is established.
Why do you want to pay off your purchases on the same day as they are made? A pattern of paying off all of your purchases before they have even been debited to the account would actually look somewhat odd. It is normal to pay the statement after you receive it. You can set up the direct debit for the full balance; there is no need to set it up for just the minimum payment. Then, so long as you have enough money in your bank account (earning you some interest I hope) you can, as they say, just sit back and relax.

20aday

Ben8282 wrote: »

If you have never had a credit card before it is my personal opinion that you are unlikely to be accepted for any of the major supermarket cards.
Having a credit card and paying it in full every month should look good but why the big concern about your credit rating? What are you planning to apply for (other than the Tesco card)? Your credit score may initially drop as a result of opening a new credit account but will then improve as a pattern of payments is established.
Why do you want to pay off your purchases on the same day as they are made? A pattern of paying off all of your purchases before they have even been debited to the account would actually look somewhat odd. It is normal to pay the statement after you receive it. You can set up the direct debit for the full balance; there is no need to set it up for just the minimum payment. Then, so long as you have enough money in your bank account (earning you some interest I hope) you can, as they say, just sit back and relax.

BIB: I used to be guilty of this until I read a thread on here and a helpful member of the MSE forum pointed out it'd look like the card was unused to potential lenders.

So around this time last year I stopped doing it and months later one of my credit card lenders gave me a limit increase.

chriz1

Thanks I have been accepted for the card with a limit of £3900 straight away, so happy days.
And I will be setting up a direct debit for full Amount

Thanks for all who helped