Credit Rebuild cards - 0%?

SuperOX

Hi all,

I'm relatively new to the forum, so my apologies if this has already come up but....

I am looking at building on an average to poor credit score and would like some advice if possible?

If I get a credit card with stupidly high APR, spend say £100 a month on it, but pay this off say a day or a week later, will that help with my credit score ? My thoughts as an easy one is to pay for petrol or shopping and then pay it off almost immediately, if this will assist the credit rating?

Please excuse my naivety but your help is greatly appreciated in advance!

Thanks!

[Deleted User]

Not if you pay if off immediately. Wait for your statement, then pay in full.

That way you build a history and pay no interest.

SuperOX

So does the interest only apply if you don't pay the balance in full?

[Deleted User]

Correct. .

Unless you withdraw cash, where interest is charged immediately.

SuperOX

Thanks ZX81, any recommendations for Credit Cards with bad credit? Or if the balance is paid I suppose it doesn't matter as long as you can get one from somewhere?

[Deleted User]

Aqua, Vanquis and Cap One are the usual suspects.

sambuca9

Use the credit card eligibility checker on this site, it gives a pretty decent indication if you are likely to be successful. As you say, you intend to pay the balance off in full each month so the apr will be irrelevant. Make sure you set up the DD to do this and you should not have any problems. Good luck

Anthorn

SuperOX wrote: »

Hi all,

I'm relatively new to the forum, so my apologies if this has already come up but....

I am looking at building on an average to poor credit score and would like some advice if possible?

If I get a credit card with stupidly high APR, spend say £100 a month on it, but pay this off say a day or a week later, will that help with my credit score ? My thoughts as an easy one is to pay for petrol or shopping and then pay it off almost immediately, if this will assist the credit rating?

Please excuse my naivety but your help is greatly appreciated in advance!

Thanks!

Say for example you use the card and spend £25, £50 and £25 and pay off your spends within a day or two the payments will be totalled for that month and your monthly payment shown on your credit report as £100.

But to build up a credit history you really need a history of balances as well as a history of payments and a history of credit limits. Whether you will get a history of balances depends on when you pay and when your lender updates. For example if you pay off your card 10 days before your lender reports then you will have a history of nil balances.

But with a high interest it's advisable to clear the balance every month unless you accept paying interest.

Lastly, when clearing the balance every month the APR is irrelevant unless in one or more months you actually don't clear the balance. It's for that reason that I always recommend going for the lowest APR you can get, just in case.