Best 0 % card at the moment - small limit for fuel etc to boost credit score

dmo84

Hi all,

I have got myself debt free, well apart from a £200 overdraft, all loans are paid off, old credit cards (x 2) were cleared off and closed mid summer this year, I dont have a mortgage but I am looking to apply for one soon.

I have a good credit rating (9 positives but 1 negative) the only negative being that I dont have any current credit card accounts, I have a score on clear-score of something like 586 I think,

If I open a 0% credit card and lets say use it for my fuel for work and pay it off in full is this likely to boost my credit score and benefit me when coming to apply for a mortgage ? thats what mortgage advisor is telling me to do

Whats the best card out there at the moment ? that may offer rewards also, I will have a search through comparison sites.

cheers all

TadleyBaggie

No point having a 0% card if you pay it off in full every month, any credit card would do.

Dobbibill

Any credit card (with the exception of TSB Advance) if paid in full on time will avoid interest due to the grace period.

Have you done an eligibility checker or approached your bank?

System

You could use the 0% to get out of overdraft

Or get a rewards card instead

[Deleted User]

0% on what? Interest? Purchases? Balance Transfers?

Also you're not trying to improve your score but build a good history.

Check all 3 of your files with the CRA'S

Kim_13

See this article for the beat 0% purchase cards: https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

This article is for the best Cashback cards:
https://www.moneysavingexpert.com/credit-cards/cashback-credit-cards

If you're accepted with a higher limit than you'd like, you can ask the lender to reduce it to an amount of your choosing.

Remember to clear a rewards card in full by the due date, otherwise the interest will cost you more than the rewards you earned.

dmo84

Iv done a comparison lookup there are cards out there for building your credit rating,

Vanquis Bank (24.7% APR Variable)

• This card can help to build your credit rating
• Your credit limit could increase after 5 months, and again every 5 months after that, up to a maximum of £4,000. T&Cs apply

Marbles (24.8% APR Variable)
Barclays which do a 0% interest on balance transfers for 18 months 2.99 fee applies

Most of them are around 24.7 APR

How long does it usually take for it to build your credit rating? month? as for example the vanquis bank card says increase after 5 month's, is there any card atm which will do it quicker

Dobbibill

Most cards give increases to customers after a history of 6 months, some longer. This would depend on you managing your account well.

You are building history, rather than 'rating'. Vanquis say they will review the limit every 5 months. All cards would build history month on month.

The APR won't be of any impact if you pay in full on time every month. (Cash type transactions excluded).

dmo84

Thanks,

If I am looking to purchase a property and get a mortgage in 3-4 months lets say then this probably wouldn't benefit me much? or is there any risks?

System

I wouldn't add a hard credit search 3 to 4 months from a mortgage application, and its too short a time to build any history. Too late. I have had mortgages before I ever had a credit card though

dmo84

So there is a risk involved if I am going for a mortgage within 3-4 months,

What about the mortgage lenders rejecting or giving me not such a good deal because of this?