Credit Card / Direct Debit / Utility

nebulag

I'm just about to get my first credit card. I've never had one and been quite proud that I have never had the need to have one. However. I want to improve my credit rating to ensure I get better rates in future and improve mortgage chances in the future. I don't want/financially need a credit card but it is one of the best ways to improve my credit rating and demonstrate that I can use the account responsibly and effectively.

As this is my first credit card then this may seem like an incredibly stupid question to people who know the answer but you've got to start somewhere...

I currently have direct debits coming out of my account such as mobile phone, spotify and other bills etc.

Do credit cards have the feature of being able to pay utility bills monthly in an automated way every month like you would in a direct debit?

My rationale would be that I am already paying for these bills and if this was being paid by the credit card then I could easily be paying off the credit card every month.

If so. Are there any pitfalls to this you can think of. Such as extras fees required for paying by credit card etc.

Again this may seem like a stupid question. Thanks in advance.

YorkshireBoy

The best way to build your credit history is by swapping your debit card purchases (but not cash!) for credit card purchases...so that's fuel, supermarket shopping, lunch, and general odds and sods that you currently use your debit card for.

Any regular payments off a credit card are called 'continuous payment authorities' (CPAs), and are generally annual renewals for car/home/breakdown insurances etc. Whilst you may be able to pay some utilities by credit card, it's not the norm...and anyone taking payment by such means is likely to pass on the 'system' cost (maybe 2-3%) to you.

takman

nebulag wrote: »

I'm just about to get my first credit card. I've never had one and been quite proud that I have never had the need to have one...

When you start reading about Section 75 protection, cashback, stooping etc you will realise not having a credit card is nothing to be proud about!. You should be proud of yourself when your getting paid to use them!.