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  • FIRST POST
    • RGun
    • By RGun 9th Jul 18, 5:51 PM
    • 47Posts
    • 4Thanks
    RGun
    Which Credit Card for a good saver...
    • #1
    • 9th Jul 18, 5:51 PM
    Which Credit Card for a good saver... 9th Jul 18 at 5:51 PM
    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?
Page 1
    • campbell19925
    • By campbell19925 9th Jul 18, 5:56 PM
    • 146 Posts
    • 181 Thanks
    campbell19925
    • #2
    • 9th Jul 18, 5:56 PM
    • #2
    • 9th Jul 18, 5:56 PM
    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.
    • zx81
    • By zx81 9th Jul 18, 5:57 PM
    • 18,650 Posts
    • 19,918 Thanks
    zx81
    • #3
    • 9th Jul 18, 5:57 PM
    • #3
    • 9th Jul 18, 5:57 PM
    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.
    • RGun
    • By RGun 9th Jul 18, 6:00 PM
    • 47 Posts
    • 4 Thanks
    RGun
    • #4
    • 9th Jul 18, 6:00 PM
    • #4
    • 9th Jul 18, 6:00 PM
    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.
    • RGun
    • By RGun 9th Jul 18, 6:07 PM
    • 47 Posts
    • 4 Thanks
    RGun
    • #5
    • 9th Jul 18, 6:07 PM
    • #5
    • 9th Jul 18, 6:07 PM
    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.
    • MallyGirl
    • By MallyGirl 9th Jul 18, 6:07 PM
    • 2,962 Posts
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    MallyGirl
    • #6
    • 9th Jul 18, 6:07 PM
    • #6
    • 9th Jul 18, 6:07 PM
    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 Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    Any views are mine and not the official line of MoneySavingExpert.com.
    • RGun
    • By RGun 9th Jul 18, 6:14 PM
    • 47 Posts
    • 4 Thanks
    RGun
    • #7
    • 9th Jul 18, 6:14 PM
    • #7
    • 9th Jul 18, 6:14 PM
    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 .
    Originally posted by MallyGirl
    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).
    Last edited by RGun; 09-07-2018 at 6:17 PM. Reason: .
    • newuser86
    • By newuser86 9th Jul 18, 6:18 PM
    • 259 Posts
    • 69 Thanks
    newuser86
    • #8
    • 9th Jul 18, 6:18 PM
    • #8
    • 9th Jul 18, 6:18 PM
    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
    • zx81
    • By zx81 9th Jul 18, 6:20 PM
    • 18,650 Posts
    • 19,918 Thanks
    zx81
    • #9
    • 9th Jul 18, 6:20 PM
    • #9
    • 9th Jul 18, 6:20 PM

    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).
    Originally posted by RGun
    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.
    • RGun
    • By RGun 9th Jul 18, 6:21 PM
    • 47 Posts
    • 4 Thanks
    RGun
    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
    Originally posted by newuser86
    So a 0%purchase card is best for me? Okay perfect. I'll have a look around now. Thank you
    • zx81
    • By zx81 9th Jul 18, 6:22 PM
    • 18,650 Posts
    • 19,918 Thanks
    zx81
    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.
    Originally posted by RGun

    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.
    • RGun
    • By RGun 9th Jul 18, 6:25 PM
    • 47 Posts
    • 4 Thanks
    RGun
    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.
    Originally posted by zx81
    Okay thank you my friend. How can I check my credit score accurately?
    • RGun
    • By RGun 9th Jul 18, 6:28 PM
    • 47 Posts
    • 4 Thanks
    RGun
    So a 0%purchase card is best for me? Okay perfect. I'll have a look around now. Thank you
    Originally posted by RGun
    How comes the APR applies after a certain period of time? And what does it mean exactly?

    On certain credit cards it says 0% apr on purchases within 28 months. So after 28 months when the APR applies, would I be able to cancel the credit card and take out a new one? Renewing the free period again?
    Last edited by RGun; 09-07-2018 at 6:36 PM. Reason: .
    • RGun
    • By RGun 9th Jul 18, 6:36 PM
    • 47 Posts
    • 4 Thanks
    RGun
    Okay thank you my friend. How can I check my credit score accurately?
    Originally posted by RGun
    I signed up to Experian, and I've been told 797 score and that was "Fair".
    • zx81
    • By zx81 9th Jul 18, 6:41 PM
    • 18,650 Posts
    • 19,918 Thanks
    zx81
    Okay thank you my friend. How can I check my credit score accurately?
    Originally posted by RGun
    You can't because you don't have one.

    You'll know when you are doing well because you will be using your card, not going overlimit, clearing in full and presenting yourself well to lenders.
    • zx81
    • By zx81 9th Jul 18, 6:43 PM
    • 18,650 Posts
    • 19,918 Thanks
    zx81
    I signed up to Experian, and I've been told 797 score and that was "Fair".
    Originally posted by RGun
    Any score with 2 sevens in it is really bad.*

    *That's not true, but I'm starting to think you're not listening.
    • Gary_Dexter
    • By Gary_Dexter 9th Jul 18, 6:43 PM
    • 2,127 Posts
    • 1,187 Thanks
    Gary_Dexter
    You donít.

    Lenders use their own internal scoring system.

    Which the public are not allowed to see.
    • RGun
    • By RGun 9th Jul 18, 7:35 PM
    • 47 Posts
    • 4 Thanks
    RGun
    I've got another question, this time regarding Money transfer fee.

    So let's say I wan to transfer money from my Natwest debit card onto my Credit Card for a monthly amount, do I have to pay a money transfer fee?

    One a Virgin Media all round Credit card it has the Money transfer fee set at 0% for 28 months and then 22.5% thereafter, so if i've got this right, I have to pay 22.5% on the amount that I'm transferring from one account into another?

    So for example, I'm paying off let's just say £100 a month, transferring the money from my debit card to the credit card... when the 28 month period is up, I'll then have to pay £100 plus £22.50?

    I don't like that at all if true. What a waste.
    • zx81
    • By zx81 9th Jul 18, 7:42 PM
    • 18,650 Posts
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    zx81
    No. You've misunderstood completely.

    If the transfer fee is 0%, then you pay 0% of the amount you transfer from the card into your current account. That will be roughly £0.

    Each £100 you pay will come off your balance - the capital plus any interest. Assuming it's also 0% interest, then your balance will decrease by £100.

    Once the promo period is over, you will be charged interest at the standard APR.

    But you don't need a 0% card. You also probably won't get one.

    Get any card. Spend on it. Clear it in full.
    • Gary_Dexter
    • By Gary_Dexter 9th Jul 18, 7:43 PM
    • 2,127 Posts
    • 1,187 Thanks
    Gary_Dexter
    A money transfer card is for transferring money from a credit card to a bank account.

    Not the other way around.
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