Credit Card Help/Credit Rating

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hoggysterling
hoggysterling Posts: 4 Newbie
in Credit cards
Hi all,

First post!
Hope you're all well.
I've had a credit card in the past with Natwest - sadly, I spent around £400-ish, and miss repayments and it went to the collections company.
I've now sorted my finances out - and my life :rotfl:
I'm in the middle of repaying the collections company - £400 left to go.

I want to get a new credit card to improve my credit rating. I won't need to use it for purchases as I have enough money month to month in my current account.

As my credit rating is particularly bad, these are the ones I'll get accepted to is one @ 29.8%apr.

Will that matter too much if I'm only using this card to boost my score?

Thank you all in advance! :money:
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    You can use the card for whatever you want.

    As long as you use it regularly repay in full each month you will build good credit history (not score).

    Not using it will not build any history.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    Hi hoggysterling and welcome to the forum :)

    Agree with zx81. In addition to the benefits already mentioned, paying the statemented balance in full each month, means you will never pay any interest (ie an effective rate of 0% APR)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    You defaulted a credit card account for £400-ish,
    You are still repaying the collections company and have - £400 left to go.
    You don't need the card for purchases because you have enough money from month to month in your current account

    How do you propose improving anything if you don't intend to use the card?
    Who do you imagine is going to give you a new card if you have defaulted for £400 and appear unable to repay it?
    The default will damage your ability o obtain credit for the next 6 years.
    You have been very foolish. Pay your debt now.
  • PRAISETHESUN
    PRAISETHESUN Posts: 3,723 Forumite
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    Ignore your score - focus instead on (re)building solid credit history, demonstrating to lenders that you are person they can trust to lend money to again. Once you have paid off your previous debt, you do this as above. Make your usual purchases on credit card and repay IN FULL every month. Set up a direct debit so you cannot forget to pay. Not only will this ensure you do not have any interest charges on your spending, it will also demonstrate that you can manage credit responsibly and will start to improve your credit history over time.
  • RG2015
    RG2015 Posts: 5,907 Forumite
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    hoggysterling wrote: »
    Hi all,

    First post!
    Hope you're all well.
    I've had a credit card in the past with Natwest - sadly, I spent around £400-ish, and miss repayments and it went to the collections company.
    I've now sorted my finances out - and my life :rotfl:
    I'm in the middle of repaying the collections company - £400 left to go.

    I want to get a new credit card to improve my credit rating. I won't need to use it for purchases as I have enough money month to month in my current account.

    As my credit rating is particularly bad, these are the ones I'll get accepted to is one @ 29.8%apr.

    Will that matter too much if I'm only using this card to boost my score?

    Thank you all in advance! :money:

    Ben8282 wrote: »
    You defaulted a credit card account for £400-ish,
    You are still repaying the collections company and have - £400 left to go.
    You don't need the card for purchases because you have enough money from month to month in your current account

    How do you propose improving anything if you don't intend to use the card?
    Who do you imagine is going to give you a new card if you have defaulted for £400 and appear unable to repay it?
    The default will damage your ability o obtain credit for the next 6 years.
    You have been very foolish. Pay your debt now.
    I am sure that hoggysterling will be very grateful for your gracious response to their first post.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    RG2015 wrote: »
    I am sure that hoggysterling will be very grateful for your gracious response to their first post.
    If you consider the response to be inadequate would it not be more productive to offer a response to them yourself rather than posting this imp0lied criticism of others?
  • RG2015
    RG2015 Posts: 5,907 Forumite
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    hoggysterling wrote: »
    I want to get a new credit card to improve my credit rating. I won't need to use it for purchases as I have enough money month to month in my current account.

    Will that matter too much if I'm only using this card to boost my score?
    Nobody will know that you are only using your card to build up a good credit history.

    However, as others have said you must pay the full balance on your monthly statement by the due date.

    The hardest thing with a credit card is to resist the temptation to spend money on the card when you do not have the money in your bank account to pay for it,
  • gionnetto
    gionnetto Posts: 234 Forumite
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    hoggysterling wrote: »
    I want to get a new credit card to improve my credit rating. I won't need to use it for purchases as I have enough money month to month in my current account.

    In order to build your credit, you need to use your card - no point in getting one if you don't use it!

    Also, you should shift your mindset. Credit cards are not to be used when you don't have the money to pay them off as soon as your statement comes in. Just purchase whatever it is that you normally do via your credit card, and pay it off as soon as your statement is issued.
    Your cholesterol levels are not seen, or used, by your heart and arteries, so ignore it.
    :eek:.
  • hoggysterling
    hoggysterling Posts: 4 Newbie
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    Willing2Learn wrote: »
    Hi hoggysterling and welcome to the forum :)

    Agree with zx81. In addition to the benefits already mentioned, paying the statemented balance in full each month, means you will never pay any interest (ie an effective rate of 0% APR)

    Hi all,

    thanks for your advice/help.

    I will use the credit card and pay it off properly this time.

    Just wondering about the APR's, as I didnt really understand. But if I pay the amount of in time and in full, APR doesn't matter too much? Is that the general jist of it ?
  • RG2015
    RG2015 Posts: 5,907 Forumite
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    hoggysterling wrote: »
    Hi all,

    thanks for your advice/help.

    I will use the credit card and pay it off properly this time.

    Just wondering about the APR's, as I didnt really understand. But if I pay the amount of in time and in full, APR doesn't matter too much? Is that the general jist of it ?
    I have had a credit card for 40 years and use it every week. I pay off in full every month and have never paid any interest so have no interest (sorry for the pun) in the APR.

    You can set up a direct debit to pay the full amount every month but make sure that your current account always has enough in it.
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