query

nova_dee

Hello.

Seeking some advise please... I am planning to apply for mortgage this year but there is this very nice offer to be had if I apply for a credit card. Will applying for a credit card at this point affect my credit file ? Thanks in advance...

Cakeguts

Why would you want a credit card if you are not going to spend any money on it? Either you are saving to buy a house or you are not. If you are then you won't have any spare cash to pay off money on a credit card and if you don't have any cash for that why get the card in the first place?

G_M

It might improve your credit file.

Assuming you always pay off the card in full each month it demonstrates

a) you are not running up debts
b) you are managing credit responsibly

However if you only pay off the minimum amount each month, or worse don't pay anything, then it will have a negative effect.

G_M

Cakeguts wrote: »

Why would you want a credit card if you are not going to spend any money on it? Either you are saving to buy a house or you are not. If you are then you won't have any spare cash to pay off money on a credit card and if you don't have any cash for that why get the card in the first place?

I use a credit card for the vast majority of my monthly payments: petrol, food, entertaiment.....

At the end of each month I pay it off in full, less the amount of 'cashback' that I earn from the CC.

This does not stop me saving - I spend no more than I would if I used cash or a debit card. And saving does not stop me paying off the card in full, as my bank balance stays stable throughout the month as I spend little on debit cards.

OP says: "very nice offer to be had" with this CC. Maybe it's cashback, like mine, maybe it's a freebie, or air miles.

Provided he uses the card responsibly, why not benefit from this offer?

nova_dee

G_M wrote: »

I use a credit card for the vast majority of my monthly payments: petrol, food, entertaiment.....

At the end of each month I pay it off in full, less the amount of 'cashback' that I earn from the CC.

This does not stop me saving - I spend no more than I would if I used cash or a debit card. And saving does not stop me paying off the card in full, as my bank balance stays stable throughout the month as I spend little on debit cards.

OP says: "very nice offer to be had" with this CC. Maybe it's cashback, like mine, maybe it's a freebie, or air miles.

Provided he uses the card responsibly, why not benefit from this offer?

Thank you very much for your reply. This is my thoughts exactly. I am being offered points, quite big and for me every little helps. But if its going to ruin my credit file, in preparation for a mortgage application, I will not get the credit card. I also use my one and only credit card for basic needs and pay in full everytime.

3mph

Airmiles freebies are often not free. I built up enough with Amex on Virgin for 2 first class tickets to New Zealand on Singapore Airlines 10 years ago and that was great. Then had enough for 4 Business Class to USA but because of a diagnosis 4 months ago can no longer fly so gave them to my daughter for Christmas. We then found that the "taxes" you have to pay includes fuel surcharge etc and totalled about £1200 which we paid so I don't bother with air miles any more, I can't afford the freebies.