New customer credit card to help credit rating

manamaga

Hi all, just wanted some opinions / advice. I have a credit rating which, according to clearscore.com is on good ground. I'm above the UK average with only two negatives, but it's in the green, which is good! The negatives on my credit rating is my applications for credit in the last 12 months (probably due to the new car I've just bought), and the second negative is that I have no active credit card accounts. I know that having a credit card account with 'on time' monthly payments can be very good for ones credit score so, in an attempt to better my score, I was thinking of getting a credit card. I have no debts or balances to transfer so it would be used really just to fill the car up each month and then pay it straight off. It won't be used to withdraw cash or pay for anything else, just a tool to boost my credit rating.
Thing is, there are so many cards and companies out there, what should I look out for in terms of best deals etc? Any advice would be gratefully received :-)

Many thanks.

grumbler

For your first card forget about 'best deals'.
Try either the bank you have a longstanding current account with or one of so called Credit Cards for Bad Credit . From the latter Aqua Reward would be my preference because of 0.5% cashback and no currency exchange loading.

Ignore the words 'bad credit'. All CCs are pretty much the same if you pay the balance in full each month.

manamaga

I was about to say, I don't have bad credit :-) Just going to be used to bolster my existing rating really. So just a regular card from our existing bank then really?

phona

From your existing bank would be good, as long as they offer a fee-free card. Most do, but iirc RBS don't (for example).
When you only want a credit building card there's no point paying for one.

Anthorn

The problem with going to your own bank when you don't have much of a credit history is that they could offer you an overdraft instead of a credit card. They do that because they might judge you as unworthy of longer term rolling credit but worthy of short-term credit.

Apply at Barclaycard and do their eligibility check. They have a range of cards including one for those with a limited credit history.

manamaga

Thanks all. I don't have a limited or bad credit rating, just could be better if I had a card. I've never had any credit turned down or refused. I'll check out just regular card from various providers I think. Thanks again.

manamaga

Just updating on this. Since I started this thread my rating has improved further (not that it was bad to start with), I now only have one negative and that is that I don't have a credit card. I'm still thinking about getting one but I have another question. If I apply for a card and get one, will that application alone leave a footprint on my rating? I just don't want to jeopardise my good rating by applying for a card.

Dobbibill

Your rating is only how the CRA view you and not a reflection on available credit facilities.

No lender ever sees how they rate you, they only look at the amount of history/data on your file.

You can do an eligibility check with BC as previously suggested or with MSE here. These will be soft searches and only you will see them on your report. Although this doesn't guarantee you are accepted.

Once you do an application it will leave a footprint on your file. The same as a mortgage, loan or current account. It will alter your score as the CRA use this type of data to amend a score but the score/rating, whatever you want to call it, is pretty irrelevant.
Another option is to just ring your bank and ask them. Asking a question to their CS dept does not put a footprint on your file, that only happens when you complete a full application.

Jlawson118

Do be careful because I've just gone through this where my Clearscore is saying I've made too many applications this year, which I know I have, but some may see that you're desperate for credit (even though you're not) but if you're in the green then you should be okay.

I've opened and closed so many credit cards down since February this year and opened a phone contract last month, as well as moving a few of my current accounts. So my Clearscore also says I've applied for too much credit, but I still managed to get a First Direct credit card despite my record being like that

How about the bank you're with, check out their offers on credit cards, your bank will probably be more likely to accept you because you've been with them for a while and can see how well you manage your finances

manamaga

Quick update. I did the eligibility check and was pre approved for a number of cards (100%). So I went for the Barclaycard Freedom Rewards card. No annual fee. I don't have any balance to transfer or plan to withdraw any cash on the card. My planned use for the card is to fill up my car at the end of each month as I normally do, but instead of using my usua banksl debit card, I will use the credit card. Then when I get home that same day, log on and pay the card balance in full. As the only negative thing on my credit rating was that I didn't have a credit card, my planned useage should remedy that :-)

[Deleted User]

manamaga wrote: »

My planned use for the card is to fill up my car at the end of each month as I normally do, but instead of using my usua banksl debit card, I will use the credit card. Then when I get home that same day, log on and pay the card balance in full.

Do NOT do that. Always wait for your statement, and then pay in full by the due date.

You want to build a history of spending and repaying. Your plan runs the risk of your card looking unused at the end of each month.