Should I apply for a credit card to rebuild my credit rating?

yhalwtgl

Last year I paid off my DMP and am now looking to improve my credit rating.
I no longer have a credit card however I have heard that having one paid off IN FULL each month may improve my rating.

Whilst I appreciate I will have the DMP on my file for 6 years, is it worth me applying for a credit card solely to improve my rating?
I also appreciate my choice of lenders will be limited, and I intend to put £1 on the card for example, and pay it off each month.

I have no intention whatsoever of running up any debt - I have learnt my lesson!

Thanks

[Deleted User]

It's absolutely worth it. Sensible use of a card is the easiest way to build a credit history (not the CRA rating).

Plus the benefits of section 75.

Just put your usual spend on it and clear in full once you get the statement. A full pay DD would be a good idea.

chrislaw84

Hi ya

I’ve just taken out a capital one card to build my rating up. I think it’s the only way for people with poor rating. Like you I don’t want to go mad on it. I just need to show I can manage some sort of finance. I have three noble phone contracts paid off a 9k loan but that’s it. No continuous credit or loans. Good luck

JackTinkler

I absolutely agree that a credit card will build your credit rating.

Try having a look at a 0% APR, I know I have one with Tesco Bank.

You need to ensure that you have the funds ready, say if you spend £5 on your credit card, ensure that you've got £5 in your bank. Don't borrow anything you can't repay...

But say one month that you've spent £70 on your credit card, and your minimum payment is £25, pay the £75 off. That's what's going to rebuild your credit file and enable you to obtain credit in the future.

Josh_Milner

Totally agree and as it’s been stated above you’ll get the protection of section 75 which is really useful should you need to take advantage of it.

It’s already been said before but use it sensible I used to just put around £50 of fuel on mine when I was building my credit file up. To be honest interest rates don’t really matter when your paying it off full each month as I’m 100% sure you only pay interest when your paying a smaller amount off the balance each month which I’m sure someone will correct me if I’m wrong.

[Deleted User]

Can someone answer my question on this. I have applied for a Post Office Matched Credit Card as it was giving me 30 months interest free on my Purchases. But i have got my card through in the post today with a leaflet saying I only have 56 days before I start paying interest on my purchases? But on your website you state that its the only card that will give you 30 months 0% Purchase or simply reject you? But I wasn't rejected so should I not be getting the 30 months interest free then?

Thanks.

[Deleted User]

Contact the card issuer and ask.

Rather than asking the question in a non-related thread...

Josh_Milner

Graphics81 wrote: »

Can someone answer my question on this. I have applied for a Post Office Matched Credit Card as it was giving me 30 months interest free on my Purchases. But i have got my card through in the post today with a leaflet saying I only have 56 days before I start paying interest on my purchases? But on your website you state that its the only card that will give you 30 months 0% Purchase or simply reject you? But I wasn't rejected so should I not be getting the 30 months interest free then?

Thanks.

Contact the issuer but also remember they don’t have to give you what’s advertised and I’ve known it happen with me once or twice and they’ve claimed it’s alter to because of my credit score.

[Deleted User]

Graphics81 wrote: »

Can someone answer my question on this. I have applied for a Post Office Matched Credit Card as it was giving me 30 months interest free on my Purchases. But i have got my card through in the post today with a leaflet saying I only have 56 days before I start paying interest on my purchases? But on your website you state that its the only card that will give you 30 months 0% Purchase or simply reject you? But I wasn't rejected so should I not be getting the 30 months interest free then?

Thanks.

I suspect you've muddled up the standard terms, where you have up to 56 days interest free on purchases if you clear in full, with the promo details of the 0%.

yhalwtgl

Thanks for all the replies to my initial question :T