I need some advice please

Dobbibill

Spend in Asda as an example, pay off in full by the due date and no interest is charged so it's not more expensive.

You have to do this month in month out though to evidence your behaviour with credit. This will paint a picture of what you are like as a financial risk which will help when it comes to a mortgage.

A direct debit is good so you never miss a due date. Just make sure you've kept the money ready for them to take it in full.

sociable7

Mate, the way it works is you get a credit card of £1200. This money doesn't belong to you, the intention is you borrow it for a short term and pay it back.

If you spend £250 in Asda in Jan 2019 on your credit card, then all you owe is £250. However, this is due to be paid on a date specified by the credit card company. If you don't pay it, then interest is applied on the £250, now you owe £250+interest.

But it does get confusing. Usually they'll give you a statement date and a payment date. The statement date will be the date they produce a statement telling you how much you owe and must pay by the payment date.

Lets say the statement date is 12th Jan 2019 and Payment date is 27th Jan 2019. If you spend £150 on 10th Jan 2019 then you're within the statement date which means you'll have to pay £150 on the 27th Jan. But, if you spend £150 on 14th Jan 2019, you've passed the statement date. This amount will now be due on the 27th Feb 2019.

You can set up a Direct debit to clear any amount outstanding on the payment date. I recommend this.

That's only a basic explanation of CC. There's interest too. But in your case, lets not even go there.

You need to be good for the next 6 months - 12 months to build your credit score. I actually recommend Vanquis or Aqua credit building cards. The interest is high, but you're not gonna pay a penny because you will only spend what you can afford. Over time, the systems will see you spend and pay and there is no lateness, so your score will go higher.

On MSE Credit Club they have a top credit cards for you, it tells you your chances of getting accepted.

[Deleted User]

Ignore the score and ignore the (un)fact “you’ll get £1200”

sociable7

No dont ignore the score. Even MSE endorses it. Lenders basically will score you, they all have various models. What Equifax, Experian and Call Credit do is, based on your current financial situation (and previous) give you an indication of how healthy your financial position is.

Im sure the OP understands I used £1200 as an example.

I also have real experience of building good credit really fast in 12 months (I got my mortgage in a fingers click whereas 12 months ago not even a broker could get anything). There are so many shortcuts and shifty ways, you need to understand the system. All legal by the way but the jobsworth folk will throw a fit.

forgotmyname

[QUOTE=sociable7;75451745]No dont ignore the score. Even MSE endorses it. Lenders basically will score you, they all have various models. [/QUOTE]

So don't ignore the CRA's score because the lenders will score you??? Which one is it? Ignore/Don't ignore???

So you admit that they SHOULD ignore the CRA's score because the lender will have their own criteria. The CRA's score is only seen by the OP and the CRA. Not something the lenders will usually see.

sociable7

You can't go round applying for loans and CC just to see if you will get approved. The CRA score gives a person a good indication. I really don't know why some people live by constantly demoting credit scores.

The only thing you shouldn't do is assume your gonna get something 100% because of a credit score. So many factors influence a rejection.

Some companies also request credit reports like smaller ones who can't afford the service fee. They will look at the score too!

K80_Black

One card that's fairly easy to get that has little perks is the Amazon Platinum, underwritten by New Day. Both me (disabled and out of work) and my partner (who had never had credit before) have one. It's a standard Mastercard that can be used anywhere, every time you spend on it you get a some points, which they convert to a £10 Amazon voucher when you get enough. You do have to spend a lot on it for the voucher - but a free tenner to spend every 3-4 months is still better than nothing!

I would ignore those who say you can only get sub-prime cards such as Aqua if you're out of work. I have a Barclaycard Platinum, for example. Use an eligibility checker as others have suggested.

chopperlyons

Thank you for your comments.
I decided to go with the Vanquis Chrome CC. They've accepted me
The limit of the CC is £500.
I won't be going anywhere near the amount offered though. I'll just pay for my groceries and repay the amount back when I get my statement.
If I set up a direct debit, can you set it up so that the full amount of which you owed is paid back? Im just wondering, as if my shopping is £50 a month, for example and one month its slightly higher or lower, will the direct debit automatically take out the amount I owe?

[Deleted User]

Yes - a full pay DD will take the full amount owing, meaning you'll pay no interest (as long as you don't have any cash transactions).