[Finance] Just got my 1st credit card in over 15 years

[HangletonGull]

Just arrived not had one for years and was too young too have it back then , anyway advice best way to use it too build up my credit score thanks

 

[Cheshire Cat]

Use it.
Always pay all debts immediately and on time.
Don't run up any interest charges.
Don't miss any repayments.

 

[Westdene Seagull]

I know people that just use it for a specific regular purchase such as the supermarket shop and then pay it off as soon as they get paid. Which, as @Cheshire Cat has already pointed out is vital.

One question though - you say you were too young last time you got a credit card - how did you get it then ?

 

[Herr Tubthumper]

Will we be seeing you in The Terrace Amex Club House then?

 

[HangletonGull]

I know people that just use it for a specific regular purchase such as the supermarket shop and then pay it off as soon as they get paid. Which, as @Cheshire Cat has already pointed out is vital.

One question though - you say you were too young last time you got a credit card - how did you get it then ?

I ment mentally I was too you young , that’s what I was thinking about just use it for my monthly big shop and then pay it off 3-5 days later

 

[HangletonGull]

Will we be seeing you in The Terrace Amex Club House then?

It’s not amex I wouldn’t even get near one of them with my credit score

 

[maffew]

I know people that just use it for a specific regular purchase such as the supermarket shop and then pay it off as soon as they get paid. Which, as @Cheshire Cat has already pointed out is vital.

One question though - you say you were too young last time you got a credit card - how did you get it then ?

I was definitely too young to get a credit card when I turned 18 legally allowed one but totally irresponsible with it, splashed out on vinyl, speakers, festivals, and a whole bunch of stuff I couldn't afford/should have saved up for.

 

[HangletonGull]

I was definitely too young to get a credit card when I turned 18 legally allowed one but totally irresponsible with it, splashed out on vinyl, speakers, festivals, and a whole bunch of stuff I couldn't afford/should have saved up for.

Thais what I did especially in the paradox or Barcelona was buying randoms drinks

 

[BN41Albion]

As others have said: use it for bigger purchases and shops and pay off in full each month

Don't treat it as free money

 

[Flounce]

Just arrived not had one for years and was too young too have it back then , anyway advice best way to use it too build up my credit score thanks

Set up a direct debit to pay monthly in full and make sure that you check the balance and that you have enough money in the bank account it will be taken from on the date shown on the monthly statement.

 

[HangletonGull]

Set up a direct debit to pay monthly in full and make sure that you check the balance and that you have enough money in the bank account it will be taken from.

I’ve done that I’ve set it up to pay the min each month , should I up it to clear the balance?

 

[WATFORD zero]

Just arrived not had one for years and was too young too have it back then , anyway advice best way to use it too build up my credit score thanks

You're not the first (and certainly won't be the last) to get burnt by credit cards when young. Always pay it off, in full, every month. If ever you don't, cut up the credit card until it's paid off.

It's easy to get them to send you another one, the alternative isn't so easy

 

[Brian Munich]

I ment mentally I was too you young , that’s what I was thinking about just use it for my monthly big shop and then pay it off 3-5 days later

Just pay the bill off in full when it’s due. That’ll usually be about 4-6 weeks after you’ve actually spent the cash.

If you’re worried about forgetting, then set up a direct debit to pay it automatically.

 

[Hovegull]

Mine sends me reward vouchers - so I earn money for using it. I use it to pay for everything and then pay off in full each month.

 

[HangletonGull]

So ive set it up to pay the min each of month should I change it to pay the full balance off each month as it’s a very low limit to start with and can easily cover it

 

[HangletonGull]

Mine sends me reward vouchers - so I earn money for using it. I use it to pay for everything and then pay off in full each month.

It’s only a capital one card so no rewards I just wanted it so I can build up

 

[Whoislloydy]

Try not to use more than 30% of your limit for the best credit score results, pay it off every month.

 

[Cheshire Cat]

Set up a direct debit to pay monthly in full and make sure that you check the balance and that you have enough money in the bank account it will be taken from on the date shown on the monthly statement.

I have a direct debit to pay off the minimum in case I have a big bill and not enough in my current account - you don't want to pay off the full amount on the card, and then be hit with an unarranged overdraft with the fees and charges that involves.

However I always pay the card in full each month.

Somebody is making a fortune out of the interest charges.

Bank of England base rate = 4.5%

Credit card rate = 29.9%

 

[Cheshire Cat]

How To Improve Your Credit Score, Tips & Advice | Experian

Find out how you may be able to improve your credit score and boost your chances of getting approved for credit at better rates with Experian.

www.experian.co.uk

 

[BN41Albion]

I’ve done that I’ve set it up to pay the min each month , should I up it to clear the balance?

Definitely set it up to pay in full - clear the balance!