Advice on spending on a credit card to build credit 29 December 2021 at 12:59PM in Credit file & ratings 7 replies 142 views

sbrewer4

Hi all,
I am soon to be 18 and I'm looking at getting my first credit card to help build up a report and score. I understand the key principle of doing some spending, paying off in full at the end of the month etc, however I have a few questions around the types of purchases and if they would make a difference. I travel to college on the bus 5 days a week term time, twice a day at £3.60 per day, would it be advisable to put this on a credit card and pay off in full to build my credit score/report (of course credit limit allowing, so I'm not maxed on the limit), does it matter if the spending on the card is small but frequent (like my bus fare) or is it better to have one larger payment?
Thanks

[Deleted User]

It makes no difference. 

[Deleted User]

Doesn't matter so long as it's paid off on time, just don't worry about the gimmick score, it doesn't matter for anything, no-one but you sees it and it has no bearing on whether you will ever get credit

Thrugelmir

Churning spend through a credit card proves nothing at all. 

MalMonroe

sbrewer4 said:

Hi all,
I am soon to be 18 and I'm looking at getting my first credit card to help build up a report and score. I understand the key principle of doing some spending, paying off in full at the end of the month etc, however I have a few questions around the types of purchases and if they would make a difference. I travel to college on the bus 5 days a week term time, twice a day at £3.60 per day, would it be advisable to put this on a credit card and pay off in full to build my credit score/report (of course credit limit allowing, so I'm not maxed on the limit), does it matter if the spending on the card is small but frequent (like my bus fare) or is it better to have one larger payment?
Thanks

Hi, as a college student, can't you get a monthly bus pass which would make your travel cheaper? You could buy that with a credit card. 

With larger purchases, it's a good idea to buy with a credit card in case anything goes wrong and then it's easier to get your money back.

I'd also advise setting up a monthly direct debit to repay your card - mine's set to clear the balance = no interest to pay. And there's no 'forgetting to pay' that way.

As others have said, it doesn't make any difference whether your purchases are large or small - but if you leave a balance on the card rather than clearing it, you'll be charged interest. Unless you get a 0% purchase credit card. There's some very recent information from Martin Lewis in the link below -

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

As Farfetch says, the score means nothing and it's never seen by anyone but you.  

Sncjw

I would try a card with your own bank first or even not get a credit card if your just turning 18. If you get approved the limit may not be high due to probably a low income. Do you work?

Even if you get it at 18 it could be tempti g to just spend on it and run up debt where you can't pay. 

Thrugelmir

Sncjw said:

Even if you get it at 18 it could be tempti g to just spend on it and run up debt where you can't pay. 

Everybody starts with the best intentions. Unfortunately life throws a curved ball once in a while.  If providing credit cards wasn't highly profitable. Then banks wouldn't be offering them. 

[Deleted User]

Thrugelmir said:

Sncjw said:

Even if you get it at 18 it could be tempti g to just spend on it and run up debt where you can't pay. 

Everybody starts with the best intentions. Unfortunately life throws a curved ball once in a while.  If providing credit cards wasn't highly profitable. Then banks wouldn't be offering them. 

Cards are highly profitable just from the merchant fees, that's why they make money and can even offer cashback cards to people who pay back on time every month, they don't need interest charges, late fees etc to make money