Vanquis Card

jpavett

Hi Everyone!
Been reading a few posts on here and wanted to ask a question myself. Just got my first Credit Card from Vanquis. I know its a bad card with high APR. To be honest I'm not looking to borrow with it, just to use it to boost my poor credit rating.

I have a couple of queries though, I plan to pay in full everyone month, to avoid any intrest incurred.

The summar box on their website clearly states;
You will not pay interest on new purchases if you pay your balance in full and on time.

However in their terms and conditions
vanquis.co.uk/credit-cards/terms-and-conditions), which I also recieved a copy of in the post today. I can't find any part which states that. Only that I incur charges from the date of any purchase transaction? Could anyone clarify this for me?

On top of this I have a second query. I will be seeting up a full payments direct debit on its due date. This will still help in improving my credit rating right? Even if I am paying no interest? I've read that is you pay earlier than the due date, then you will gain no benefit as there will be no outstanding balance on the due date, so it will look like the card is unused on any credit report. I'm guessing I have to wait until the due date to make any payment so that it will show up? Thats why I am leaning towarda a direct debit, seems.to be no point in paying with my debit card if there is no point in clearing the balance earlier than the due date.

If anyone could clear my issues up I would be super grateful!

James

bigadaj

jpavett wrote: »

Hi Everyone!
Been reading a few posts on here and wanted to ask a question myself. Just got my first Credit Card from Vanquis. I know its a bad card with high APR. To be honest I'm not looking to borrow with it, just to use it to boost my poor credit rating.

I have a couple of queries though, I plan to pay in full everyone month, to avoid any intrest incurred.

The summar box on their website clearly states;
You will not pay interest on new purchases if you pay your balance in full and on time.

However in their terms and conditions
vanquis.co.uk/credit-cards/terms-and-conditions), which I also recieved a copy of in the post today. I can't find any part which states that. Only that I incur charges from the date of any purchase transaction? Could anyone clarify this for me?

On top of this I have a second query. I will be seeting up a full payments direct debit on its due date. This will still help in improving my credit rating right? Even if I am paying no interest? I've read that is you pay earlier than the due date, then you will gain no benefit as there will be no outstanding balance on the due date, so it will look like the card is unused on any credit report. I'm guessing I have to wait until the due date to make any payment so that it will show up? Thats why I am leaning towarda a direct debit, seems.to be no point in paying with my debit card if there is no point in clearing the balance earlier than the due date.

If anyone could clear my issues up I would be super grateful!

James

Technically you don't have an interest free period on a credit card, the interest is waived if you pay the full statement by the due date. If you don't then you incur interest, and if you then lay in full the following month you will still pay trailing interest until the next month.

You can make payments any time after your statement issue and before the due date to ensure you don't incur interest but get it recorded as actively using credit.

Payments by direct debit will put the onus on the provider, if it is set up properly they take responsibility and can't charge you if it is t taken. However make sure it is set up and will be paid on the first statement, it can take some time to become active and this is on your statement, if it doesn't say it will be taken automatically by direct debit then you'll need to make a payment.

Direct debit dates can vary slightly so make sure you have the money in your account up to a week early or a few days late. Also direct debit is easy but you still need to check your statements to make sure th translations are correct.

jpavett

How does that work though if I pay it off before the statment is due? Surely, for an example if my credit limit was 500. I could spend 500, pay it off, spend 500, then pay it back. Would that show as me having paid back 1000 credit in a month on my report, when my limit is only 500. Please clarify if I am understanding you wrongly!

bigadaj

jpavett wrote: »

How does that work though if I pay it off before the statment is due? Surely, for an example if my credit limit was 500. I could spend 500, pay it off, spend 500, then pay it back. Would that show as me having paid back 1000 credit in a month on my report, when my limit is only 500. Please clarify if I am understanding you wrongly!

You can make interim payments and it would be advisable if you have a low limit and need to soend more. If you spend larger sums they may well increase your limit or you can apply for a limit raise after a few months.

The credit report will only show the balance on your statement, so a maximum of £500 on your example.

m4rc

jpavett wrote: »

How does that work though if I pay it off before the statment is due? Surely, for an example if my credit limit was 500. I could spend 500, pay it off, spend 500, then pay it back. Would that show as me having paid back 1000 credit in a month on my report, when my limit is only 500. Please clarify if I am understanding you wrongly!

I believe if you did this the statements will always show a zero balance and they will likely report that to the CRA, so it would appear you are not using the credit card and just have the full balance available to spend.