Argos Store Card (Not Argos Credit Card) - Good way to build credit score?

GimmeSomeCredit

Deleted_User wrote: »

Anything will do. Luma is fine.

Clear it in full month. Don't start off with the promo plans just yet.

What sort of promo plans do you mean? Do Luma offer promo plans?

Also, is it okay if when I buy something with the credit card I pay it off straight away, or does it look better if I leave it at least a week before I pay it off?

And sorry for being noobish, but if I pay off the credit card and don't use it there's no fees to pay right? And I can cancel it at any point?
Thanks again

[Deleted User]

Promos are things like 0% for 3 months.

Pay your bill in full when you get the statement. Don't do it piecemeal.

You won't pay interest if you clear in full.

You can cancel at any time but make sure you have other cards before you do

GimmeSomeCredit

Ah, so if I pay off the bill in full (not bit by bit) then I won't pay interest?

I think with Luma the 0% for 3 months is a default thing everyone gets, I don't know for sure.

Ah, so I should get a new credit card before I cancel a credit card is what you are saying?

[Deleted User]

Yes to all that.

GimmeSomeCredit

So, how come it is a bad thing if I just cancel a credit card and then don't get a new one?

Makes it seem as if once I'm dragged into using credit I can never get out of it lol.

Candyapple

GimmeSomeCredit wrote: »

So, how come it is a bad thing if I just cancel a credit card and then don't get a new one?

Makes it seem as if once I'm dragged into using credit I can never get out of it lol.

Because then you won't have any form of revolving credit showing on your credit reference files (those lovely monthly green zeros) which then means when you do want to apply for anything, lenders won't see any recent behaviour as to how you treat credit, so you may end up being declined.

It's worth noting that if you are taking out a subprime credit card such as Luma, then please set up a direct debit to take the FULL monthly payment. This way should you ever have an accident or an emergency happens, your payment will always be taken and you won't ever get a late payment mark.

Note I said it needs to be for the full payment and not minimum payment - solely because it's a high interest card and you don't want to be carrying a balance and paying a penny in interest.

Rather than just going straight for Luma, you may want to enter your details in the eligibility checker for 'bad credit' credit cards to see what comes up:
https://creditcards.moneysavingexpert.com/?bad-credit&_ga=2.159262714.1522868399.1498035606-722766352.1498035606

And just in case it doesn't come up in those results, Barclaycard also offer a credit builder card and are a good card to have because they offer generous limits and are good with credit limit increases, plus the also have 3 months at 0% purchases:
https://www.barclaycard.co.uk/personal/credit-cards/initial?TC=GOS0000001

karl1989

i started with 2 cards,
Capital One and Aqua Card, they increased my limit every month, and i had upto 59 days on both cards to pay full balance each month in full.
so could choose to pay £20 here £50 there,
but i always paid the full amount before the 59th day.
online management of the credit cards is the best way to see exactly how it is broken down and give you dates to pay by etc..
but once you get caught up in it with high interest it can drag you in so be careful.
but only way to progress in life now is to unfortunately have "manageable debt" and build your history.

Chrysalis

its simple really.

1 - apply for subprime card e.g. capital one
2 - only spend what you would normally spend anyway e.g. food shopping, this means even a low limit is fine.
3 - Pay it off in full by end of next statement.

Every single CC I have ever heard off, offers the up to 60 days free interest deal which is basically pay off your full balance on every statement and you will never pay interest for "purchases".

Dont do things like withdraw cash from an ATM as that doesnt count as a purchase and has its own fees and interest.

This seems to be by far the best and quickest way to make you more desirable to lenders.

karl1989

Chrysalis wrote: »

its simple really.

1 - apply for subprime card e.g. capital one
2 - only spend what you would normally spend anyway e.g. food shopping, this means even a low limit is fine.
3 - Pay it off in full by end of next statement.

Every single CC I have ever heard off, offers the up to 60 days free interest deal which is basically pay off your full balance on every statement and you will never pay interest for "purchases".

Dont do things like withdraw cash from an ATM as that doesnt count as a purchase and has its own fees and interest.

This seems to be by far the best and quickest way to make you more desirable to lenders.

yes like Chrysalis stated, this is exactly the best way to use them.