Nooby CC question

luke5121

Hi all,

Looking at getting a credit card to rebuild my file. The AQUA Reward 34.91% APR... (Wont let me post links..

Am I right in thinking, 1st July I purchase an item for £129.99, THAT'S ALL. I will eventually get billed £129.99 for the end of that monthly period, with the chance to repay a minimum repayment, or all in full. If I immediate pay it in full I will not get charged the 2-3% as seen below?

It's quite simply black and white as that, and you can build your credit score back up, with no cost. Just using your CC, repaying in full and repeat?


Other Interest Rates Introductory Rate Monthly Rate Annual Rate
Purchases N/A 2.527% or 3.141% or 3.432% 34.91% or 44.93% or 49.91%
Cash Advances N/A 2.840% or 3.717% or 3.992% 39.94% or 54.95% or 59.95%
Balance Transfers N/A 2.527% or 3.141% or 3.432% 34.91% or 44.93% or 49.91%

PeacefulWaters

Yup. Pay in full between statement date and due date and you'll get no interest charged and your credit history will show you paid in full.

luke5121

Thanks for your speedy reply! There's 2 I'm more eligible for.

Aqua cashback (0.5%)
OR
Aqua 0% for 6 months

Which would you recommend?
Also is it best practice to pay in full, or is it considered viable to pay just the minimum repayment so you are considered more of a 'money maker' for creditors?

Feel like I'm missing a trick here!

Cheers

Dobbibill

Yes, if you pay off each statement in full, you will not incur any interest.

Don't exceed you credit limit, don't use for cash advances EVER and you will be fine.

Don't pay any attention to your credit score - it is of no use to you.
History doing the above month after month will evidence you ability to handle credit sensibly.

Dobbibill

If you are planning to pay in full [which is the best idea, you don't want/need to pay interest] then I would probably opt for the 0.5% cashback.
At least you get rewarded for using it.

Ben8282

Do not make the minimum payment. With a low limit card such as Aqua and using the figures from your example, making a minimum payment on £129.99 balance will show nothing except that you lack the means to repay £129.99 in one go and have to spread the repayments at an extortionate rate of interest.
You do not need to repay immediately the statement is issued. Just make sure you pay in full by the payment due date which will be clearly shown on your statement. A full balance direct debit is the recommended way of doing this.
I would suggest the cashback card. The 0% offer is of no use to you as you presumably have no balance to transfer.

BrokeInNYC

My advice would be to maybe pick one expense to charge to this card on a monthly basis. One you know you'll be able to pay in full and handle without any issue. It could be anything. Maybe you want to pick your car payment or cell phone bill. Anything you know you can charge each month and pay in full at the end. It's also easier to stick with one card so that you don't run the risk of incurring small balances on multiple cards. As long as you stick to the basics, you should see your score gradually rise.

chattychappy

Pay in full.

In general, credit reference agencies are used to assess risk, ie the chances of a lender not getting its money back if they lend to you. They are not used to assess whether they can make money out of you by your only paying minimums (or taking cash advances or anything else that is marked, for that matter).

Even if the above is wrong, for me you should never let the credit record tail wag the money saving dog. Yes, a good credit record, in time, can save you money by enabling cheaper credit when you need it or supporting a mortgage so you can get out of renting. BUT, it's never worth "spending" money to obtain.

bigadaj

BrokeInNYC wrote: »

My advice would be to maybe pick one expense to charge to this card on a monthly basis. One you know you'll be able to pay in full and handle without any issue. It could be anything. Maybe you want to pick your car payment or cell phone bill. Anything you know you can charge each month and pay in full at the end. It's also easier to stick with one card so that you don't run the risk of incurring small balances on multiple cards. As long as you stick to the basics, you should see your score gradually rise.

Your score is irrelevant, the U.K. credit system is different to the US in that respect.

luke5121

Thank you all, very insightful and very much appreciated.

PaulW922

Your score is irrelevant, the U.K. credit system is different to the US in that respect.


Your score is not irrelevant, it is just that each lender calculates it their own way. I think that is what the OP was getting at rather than the 'paid for' scores produced by Experian and Equifax