Never had a credit card..

bones85

So i'm 32 years old, and this year i'll finally be looking to move out my mum and dad's house to get my own place once i get my shares with work in march or april

But my dad has recommended i get a credit card to improve my credit rating?
Only i've never had one and never had the need for one, So just wondering i am quite sensible with money, Should i get one and just use it for say food shopping every month and making sure i pay it back it will all be ok? is there a limit of things i need to purchase on the card to improve my rating etc?

Question as well, the 0% interest cards, does it matter how much i pay back each month?

e.g say i bought a pair of trainers for £100, and the card is 0% for 12 months, i could pay it back in 2 months with 2x£50 or 12 x £:A8.33 as long as its paid back in full ?

Dobbibill

If you plan to use for daily spending you would normally do, then pay it back in full on the due date this will demonstrate responsible use of credit.
Most Credit cards do not charge interest until the due date has passed without full payment.

If you were to use a promo offer like 0% on purchases then yes you can split the payments but you have to make sure you pay at least the minimum payment on time every month.

NineDeuce

Realistically, all you need a credit rating for is to get a mortgage on a house.

I wouldnt recommend using it for anything else.

You can get a mortgage without having a credit card.

MallyGirl

A credit card can also be useful for the payment protection it brings when buying larger items, plus hotels and car hire are much easier with one.

Brynsam

NineDeuce wrote: »

Realistically, all you need a credit rating for is to get a mortgage on a house.

'I'm not a number, I'm a free man" – er, no, you're a number. Credit scoring is an ever–more important part of everyone's financial lives, not just affecting the obvious, such as credit cards, mortgages and loans – but also your ability to get monthly car insurance, contract mobile phones or switch your energy supply from pre–paid key meters.'

Source? Martin Lewis. So believe whichever view you prefer and think has greater credibility.

ViolaLass

Start by getting a card, using it for whatever you'd usually spend and paying it off in full.

You can always get more complicated from there.

[Deleted User]

Brynsam wrote: »

'I'm not a number, I'm a free man" – er, no, you're a number. Credit scoring is an ever–more important part of everyone's financial lives, not just affecting the obvious, such as credit cards, mortgages and loans – but also your ability to get monthly car insurance, contract mobile phones or switch your energy supply from pre–paid key meters.'

Source? Martin Lewis. So believe whichever view you prefer and think has greater credibility.

Though the score means diddly squat, and it's your credit history that matters

jcontest

Just a quick note here.
One KEY warning that every user should know is to NEVER draw cash out at an ATM using a credit card.


Typically they have a large "Fee" attached for this and it is quite expensive. The interest rate may also be different than that of other purchases.



Also, if you get a special 0% CreditCard and decide to only pay the "minimum" each month, but draw out some cash by mistake, then you would find that the Cash payment is the last one the CC Company will pay off, and it will not have the 0% rate. Your payment goes towards the lowest interest payment first, no exceptions.

[Deleted User]

jcontest wrote: »

Your payment goes towards the lowest interest payment first, no exceptions.

Other way round.

It goes to the highest interest rate, no exceptions.

dresdendave

jcontest wrote: »

Just a quick note here.
One KEY warning that every user should know is to NEVER draw cash out at an ATM using a credit card.
.

Thanks for the heads up. I'll stop using my clarity card for ATM withdrawals when abroad because I wouldn't want to get foreign currency at the best possible rate with no fees.

bones85

Thanks for all the help guys, ideally as well a card i could use in america would be handy as i'm going there in April and i get paid while i'm out there? But then again, i will have saved enough spending money before going out there to not use one abroad

I don't think i've come across a good 0% and foreign exchange credit card