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  • FIRST POST
    • hoggysterling
    • By hoggysterling 21st Oct 19, 4:06 PM
    • 4Posts
    • 0Thanks
    hoggysterling
    Credit Card Help/Credit Rating
    • #1
    • 21st Oct 19, 4:06 PM
    Credit Card Help/Credit Rating 21st Oct 19 at 4:06 PM
    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
    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!
Page 1
    • zx81
    • By zx81 21st Oct 19, 4:10 PM
    • 24,087 Posts
    • 26,795 Thanks
    zx81
    • #2
    • 21st Oct 19, 4:10 PM
    • #2
    • 21st Oct 19, 4:10 PM
    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
    • By Willing2Learn 21st Oct 19, 4:14 PM
    • 4,603 Posts
    • 4,161 Thanks
    Willing2Learn
    • #3
    • 21st Oct 19, 4:14 PM
    • #3
    • 21st Oct 19, 4:14 PM
    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

    • Ben8282
    • By Ben8282 21st Oct 19, 4:56 PM
    • 3,936 Posts
    • 2,149 Thanks
    Ben8282
    • #4
    • 21st Oct 19, 4:56 PM
    • #4
    • 21st Oct 19, 4:56 PM
    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
    • By PRAISETHESUN 21st Oct 19, 4:58 PM
    • 1,367 Posts
    • 751 Thanks
    PRAISETHESUN
    • #5
    • 21st Oct 19, 4:58 PM
    • #5
    • 21st Oct 19, 4:58 PM
    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
    • By RG2015 21st Oct 19, 5:04 PM
    • 1,743 Posts
    • 1,109 Thanks
    RG2015
    • #6
    • 21st Oct 19, 5:04 PM
    • #6
    • 21st Oct 19, 5:04 PM
    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
    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!
    Originally posted by hoggysterling

    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.
    Originally posted by Ben8282
    I am sure that hoggysterling will be very grateful for your gracious response to their first post.
    • Ben8282
    • By Ben8282 21st Oct 19, 5:39 PM
    • 3,936 Posts
    • 2,149 Thanks
    Ben8282
    • #7
    • 21st Oct 19, 5:39 PM
    • #7
    • 21st Oct 19, 5:39 PM
    I am sure that hoggysterling will be very grateful for your gracious response to their first post.
    Originally posted by RG2015
    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
    • By RG2015 21st Oct 19, 7:38 PM
    • 1,743 Posts
    • 1,109 Thanks
    RG2015
    • #8
    • 21st Oct 19, 7:38 PM
    • #8
    • 21st Oct 19, 7:38 PM
    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?
    Originally posted by hoggysterling
    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
    • By gionnetto 21st Oct 19, 8:33 PM
    • 211 Posts
    • 38 Thanks
    gionnetto
    • #9
    • 21st Oct 19, 8:33 PM
    • #9
    • 21st Oct 19, 8:33 PM
    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.
    Originally posted by hoggysterling
    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.
    .
    • hoggysterling
    • By hoggysterling 24th Oct 19, 12:16 PM
    • 4 Posts
    • 0 Thanks
    hoggysterling
    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)
    Originally posted by Willing2Learn
    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
    • By RG2015 24th Oct 19, 12:30 PM
    • 1,743 Posts
    • 1,109 Thanks
    RG2015
    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 ?
    Originally posted by hoggysterling
    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.
    • MallyGirl
    • By MallyGirl 24th Oct 19, 1:04 PM
    • 4,031 Posts
    • 9,466 Thanks
    MallyGirl
    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 ?
    Originally posted by hoggysterling
    If you pay in full and on time then APR doesn't matter AT ALL as you won't be charged any interest - pay late by even a day, or pay 1 penny less than the statemented balance then you will.
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