Credit Building for the first time, cards and advice?

[Deleted User]

VII_UP said:

One more, I believe the answer is yes:
If I am paying off in full; with no revolving debt, is my score likely to increase at a greater or equal rate to those who pay the minimum balance? 

Don't worry about the score.  It doesn't reflect anything useful and isn't a factor in lending,  The CRAs have very odd ideas about what makes someone a good risk (eg if you have a CCJ, make sure you hang on to it, as your score often drops when it disappears so you must be a higher risk).  Lenders tend not to agree with that viewpoint.

All you need to worry about is managing your credit.

VII_UP

Deleted_User said:

Apply now - if declined, leave it a couple of months before retrying.

Use an eligibility checker to see what you might get.  There's nothing wrong with a high APR rate card because, as you say, you won't be paying interest.   But more mainstream cards will give you a higher limit, which paints you in a better light.

In that case I'll get on to Vanquis ASAP and see how I get on... ClearScore points to a 95% chance of acceptance and this is the first I have filled out without 'Guaranteed' acceptance from the eligibility checker, thank you!

Ebe_Scrooge

VII_UP said:

One more, I believe the answer is yes:
If I am paying off in full; with no revolving debt, is my score likely to increase at a greater or equal rate to those who pay the minimum balance? 

Yes, in a word.  Not that it matters one jot, as your score is as much use as a tea receptacle constructed from cocoa solids.

But the important bit is that paying in full every month builds up a good credit history - as well as saving you from paying any interest.  Paying only the minimum (unless you're on a 0% promotional deal) is a bad idea on 2 counts - it costs you money in interest, and gives prospective lenders the impression that you can't afford to pay what you owe.

VII_UP

Malkytheheed said:

Probably the most sensible first time poster I have ever seen! 

Thank you! A lot of these questions come from what I 'think I know' but I really want to make the best of this time while my outgoings are low, there are a lot of misconceptions from CC jargon and up to now I've only really used the site for banking rates and getting the most interest for my money! 

VII_UP

Deleted_User said:

VII_UP said:

One more, I believe the answer is yes:
If I am paying off in full; with no revolving debt, is my score likely to increase at a greater or equal rate to those who pay the minimum balance? 

Don't worry about the score.  It doesn't reflect anything useful and isn't a factor in lending,  The CRAs have very odd ideas about what makes someone a good risk (eg if you have a CCJ, make sure you hang on to it, as your score often drops when it disappears so you must be a higher risk).  Lenders tend not to agree with that viewpoint.

All you need to worry about is managing your credit.

Excellent, thank you for taking this time out I have really learned a lot from starting the thread! I only learned what a CCJ actually was last week... I did notice the score is at odds with my current position, I recall having the maximum available when I was into the student overdraft and had no job versus now it's a fair rating while I have no debt... But I do understand why now!

VII_UP

Ebe_Scrooge said:

VII_UP said:

One more, I believe the answer is yes:
If I am paying off in full; with no revolving debt, is my score likely to increase at a greater or equal rate to those who pay the minimum balance? 

Yes, in a word.  Not that it matters one jot, as your score is as much use as a tea receptacle constructed from cocoa solids.

But the important bit is that paying in full every month builds up a good credit history - as well as saving you from paying any interest.  Paying only the minimum (unless you're on a 0% promotional deal) is a bad idea on 2 counts - it costs you money in interest, and gives prospective lenders the impression that you can't afford to pay what you owe.

This is good, I strongly agree but when learning the lesson that 'no debt < debt' it seemed at odds before I started to understand the pathways and got a decent fixed salary, prior to this my overtime covered 70% of my income but I knew I couldn't put that on the forms!

VII_UP

UPDATE: Hi everyone, got accepted via text message for the Vanquis card today. Did not have that famous phone call!
Thank you all for your help; a lot of this is very new for a recent student, I'll come back to this thread for revision in the future!