New to investing - looking for tips

OliverNW3

Thanks ChasingSunshine, good points.

I need to do more to build my credit rating - I have registered to vote this morning, following your post, as I knew I needed to do that but just been procrastinating.

At the moment I don't hold any credit card, bar one from my old bank in the ROI which I still have a small amount of money in. I paid it off in full a few weeks ago. You would suggest getting a credit card with a bank and using it occasionally and paying off immediately, as it's better for my credit rating right?

N1ckS

Any reason you've decided to go with First Direct? Whilst traditionally they were well regarded for their customer service they seem to be losing ground to rivals and the challenger banks.

It may be worthwhile opening another account with Monzo or Starling to compare the services.

OliverNW3

Hmm, I guess it was just a recommendation from a friend (particularly for their customer service) and the rate they offer on their ISA seemed good. Also - too much choice leads to me doing nothing. Same reason I like shopping at Aldi, fewer choices make me happier! So just decided to go with it without thinking too much.

I also use Revolut - actually this is what I mainly use for day to day stuff.

Revolut's "Vault" feature, ie. rounding up spare change and putting it into a savings account usually saves me at least 100 pounds a month, which I always transfer to my Ulster Bank ISA once I hit 100, nice little addition.

N1ckS

Sure, there's no harm in giving them a go. Personally I found their app to be pretty basic which may be a consideration:
https://www.moneysavingexpert.com/news/2019/07/monzo-tops-our-bank-apps-poll-as-traditional-banks-lag-behind/

enthusiasticsaver

OliverNW3 wrote: »

Thanks for your advice. I wouldn't be putting 100% of my savings in, I have about 26k saved, and am thinking of just ringfencing 10k as an investment and saying goodbye to it, and hoping that in 10/20 years it may have paid off. That would leave me with a pot of about 16k, and I would continue saving aggressively to help build a deposit, for when that time comes (I realistically don't see it coming very soon, but that could change if I met a partner and he wanted to invest in a property too).

My employer just told me that the minimum contributions are 3% from the employer and 5% for the employee, they haven't said if their 3% is a max - I've already asked them if they can increase mine, and will ask if they match it in some way if I do by increasing their contributions.

OK that makes sense.

A lot of people, myself included started investing using a highly diversified passive fund of funds (Vanguard Lifestrategy is often mentioned on here) I did not start investing until mid 50s so we went for cautious to moderate Vanguard LS60 which is 60% equities and 40% fixed term bonds etc. You are younger so you might want to consider the VLS80 or even VLS100 or or Blackrock, Legal and General or any other multi asset fund. Or go for 100% equities in an index tracker like you mentioned before but that will be more volatile.

You can compare platforms (examples Halifax sharedealing who I used, Fidelity we used and are using now and iweb) There are websites which compare the costs for the type of investor you are https://www.comparemyplatform.com. Monevator have some great articles. The main thing is do your research, make sure you know what you are invested in and do not invest above a level of risk you are comfortable with. You will get great advice on here so keep using it as extra support but no one can advise you fully as we do not know your full circumstances.


Definitely maximise your pension contributions first though before going down S and S ISA route. Much more tax efficient and you may be able to get more out of your employer.

ChasingSunshine

OliverNW3 wrote: »

At the moment I don't hold any credit card, bar one from my old bank in the ROI which I still have a small amount of money in. I paid it off in full a few weeks ago. You would suggest getting a credit card with a bank and using it occasionally and paying off immediately, as it's better for my credit rating right?

Regarding your ROI card, if you are planning on going back at some point it might be an idea to keep it and your Irish current account open, assuming you won't have any charges to do this (apart from the gov stamp duty). Not sure if it helps as tbh have never tried to check a credit file there but it's an active credit account if things change, you move back and need a loan / mortgage. It's also handy for when you are home so don't pay foreign exchange fees but thats not as much of an issue if you have a revolt acc. Anyway just something to consider depending on your own circumstances.

For UK rating yes it's about showing you have a history of being good with credit which is a bit trickier when you are new in a country. Capital one gave me a card with really low limit 6 months after I moved and then it increased pretty much every three months after that. I just ran a few small spends through it each month and paid it off in full. My bank gave me a credit card with stupid limit after a year so you could see what yours says. Have a look at MSE credit club, they do an eligibility checker so you can see what cards you may be accepted for. Usual caveat about paying off in full every month, setting direct debit to cover payment etc apply of course. I'm still pretty annoyed about being denied a sim only phone contract (for about £10 a month) because I had no credit history so tend to harp on about it :rotfl: Obviously cc not essential could also build history with utilities, mobile contract, overdraft etc and maybe wait until it is recorded on your credit report that you are on the electoral register.