Which Credit Card for a good saver...
RGun
Posts: 58 Forumite
in Credit cards
Hi all,
In approximatley a year (possibly 2) I will be purchasing a new home, so naturally I will need to boost my credit score and have good credit.
I've been advised by my father to take out a credit card, use it wisely for the next 24 months or so and it'll boost my credit rating for when I attempt to purchase the home.
I went to my bank, Natwest, and their website has a credit card checker, I filled out my details and I was presented with a few credit cards.
If I use the credit card to pay for something like a Laptop, lets say the laptop cost £1,000, it would be ideal for me to pay £100ish or so per month over the next year and pay it off fully, I ideally don't want to pay back £1,200 on a £1,000 laptop.
I really would like a credit card where I pay back what I buy, not pay back more.
I have a large amount of money saved up and I do not need the Credit Card for things such as emergency cash, or raking up air miles etc, simply for boosting the credit score, which one would you guys recommend?
In approximatley a year (possibly 2) I will be purchasing a new home, so naturally I will need to boost my credit score and have good credit.
I've been advised by my father to take out a credit card, use it wisely for the next 24 months or so and it'll boost my credit rating for when I attempt to purchase the home.
I went to my bank, Natwest, and their website has a credit card checker, I filled out my details and I was presented with a few credit cards.
If I use the credit card to pay for something like a Laptop, lets say the laptop cost £1,000, it would be ideal for me to pay £100ish or so per month over the next year and pay it off fully, I ideally don't want to pay back £1,200 on a £1,000 laptop.
I really would like a credit card where I pay back what I buy, not pay back more.
I have a large amount of money saved up and I do not need the Credit Card for things such as emergency cash, or raking up air miles etc, simply for boosting the credit score, which one would you guys recommend?
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Comments
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When it comes to getting a mortgage the mortgage lender will not look at a "credit score" - they will do an affordability assessment instead - taking into account your deposit size, income, bills, debt etc whilst taking into account any problems you have had in the past with credit.
If you don't need a credit card - don't get one. Taking it out for the sake of it is a waste of time and counteractive to your long term objective of getting a mortgage.0 -
Get any card, put your regular spend on it and clear in full every month.
And never ever take notice of your credit scores. Lenders don't and with good reason.0 -
Okay, but why would my father tell me to get a credit card if I don't need one, he's been buying a selling properties for 30 years+ and he advised me, as a first time buyer, to get one. He's not the type to make a mistake, especially a mistake with something to do with buying a home.
I myself have worked out the bills/repayment/fuel spend etc and I'm well within my salary per month.0 -
I just phoned him and his reply was that the lenders use your credit report to get information on how reliable I am at repaying owed money.0
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It will bulk out your credit history (not score) to have ongoing evidence of managing credit well.
You have 2 choices - get any card and just use for your normal shopping - petrol, food, etc. Set up a direct debit to pay off in full each month. You will demonstrate good financial behaviour and will pay no interest.
If you actually want to buy something expensive like a laptop - not unreasonable as you get some protection this way - then you need a 0% deal on purchases. Whether you will get one as your first card, I couldn't say. Try the eligibility checker to see the likelihood. If you do then set up direct debit to pay the minimum payment, let your savings earn their interest, and then pay the balance of the card remaining just before the 0% deal runs out.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
It will bulk out your credit history (not score) to have ongoing evidence of managing credit well.
You have 2 choices - get any card and just use for your normal shopping - petrol, food, etc. Set up a direct debit to pay off in full each month. You will demonstrate good financial behaviour and will pay no interest .
I more than likely won't be buying anything expensive, just normal weekly things like you said, a new top/food shopping/ trainers, and I'll pay it back every single month.
Does it not matter which one I get? The one on the Natwest site there is one offered called "The NatWest Credit Card"
9.9%p.a. (variable)
representative APR 9.9%
Assumed credit limit £1,200
Annual fee £0
What does this mean? ( I know the £0 annual fee).0 -
Go on the credit card section of the website and view the 0% purchase cards. Apply for one of these. In essence just pay the card off each month after the statement has arrived. If you dont pay the minimum and as long as you're in the 0% term you will pay no interest0
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9.9%p.a. (variable)
representative APR 9.9%
Assumed credit limit £1,200
Annual fee £0
What does this mean? ( I know the £0 annual fee).
It means the representative APR is 9.9%, though you may get a higher rate (and are likely to, with a thin credit file).
The £1,200 is an example credit limit which is used across all cards. It has no bearing on what you may get.0 -
Go on the credit card section of the website and view the 0% purchase cards. Apply for one of these. In essence just pay the card off each month after the statement has arrived. If you dont pay the minimum and as long as you're in the 0% term you will pay no interest
So a 0%purchase card is best for me? Okay perfect. I'll have a look around now. Thank you0 -
I just phoned him and his reply was that the lenders use your credit report to get information on how reliable I am at repaying owed money.
That's correct. The only mistake he (or you) made was focusing on improving the fictional score.
It's all about your credit history, not the pretend scores.0
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