New to Credit Cards (UK)

coughs

coughs

coughs

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Joined
9 Aug 2010
Posts
710
Hello,

I'm new to credit cards and I just applied to the Barclaycard Initial 34.9% so I can increase my credit score as its currently low as I never had any previous credit history. I have been told if I pay it off in full every month I will have no problems and will increase my credit rating.

Can someone please let me know how long it usually takes to build a good credit score? and how do I lower the APR? I will be paying everything off every month but it would be good to get a low APR eventually. I heard its common practice that people close their accounts after the 0% interest is over and get the same card?

Please give me some tips/suggestions or anything you think I should know and share your good/bad experiences.

Thank you :)
 
No such thing as a credit score.

Other things depend on your credit reports and if you have any defaults or CCJs.

Just clear your balance every month; not much more you can do than that.
 
APR shouldn't really be a consideration with credit cards because you should never be paying interest on the balance (either by paying off in full every month or having an interest free offer). If you are in need of credit then you should be looking at a personal loan.

Having said that a common use for credit cards is to make a purchase on a card with an "interest free on purchases for X months" offer, then when the time is almost up you can transfer onto a card with an "interest free balance transfer for X months" offer (there is usually a fee of around 2-3%). Essentially this way you get a loan for even less than a personal loan. However you have to remember to transfer the balance each time as once the period is up you end up paying interest on the balance. You still have to make the minimum payment every month on the balance.
 
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The card I got is 0% interest free for 3 months so if I buy a £2000 iMac for example and have £400 left to pay at the end of the period. What should I do? so you would recommend a transfer card for x 0%? what would I do with it once its all paid off? Obviously this is all hypothetical as I will be only spending money that I currently have.
 
coughs said:
The card I got is 0% interest free for 3 months so if I buy a £2000 iMac for example and have £400 left to pay at the end of the period. What should I do? so you would recommend a transfer card for x 0%? what would I do with it once its all paid off? Obviously this is all hypothetical as I will be only spending money that I currently have.
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You'd balance transfer the remaining balance onto the card with the best balance transfer offer and finish paying it off on that card. Then leave the card unused for a bit before cancelling it.
 
Buy something on a "buy now, pay in 12 months" agreement and pay it back early.

This, combined with paying off your credit card IN FULL every month should boost your "credit score" pretty quickly.

You can get a summary of your credit history using websites if you're interested. Have a look on moneysavingexpert.
 
Minstadave said:
You'd balance transfer the remaining balance onto the card with the best balance transfer offer and finish paying it off on that card. Then leave the card unused for a bit before cancelling it.
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Wouldn't canceling the balance transfer card decrease his credit score which defeats his purpose? lol
 
Minstadave said:
Using a credit card to make an expensive purchase is not always a bad idea, provided you know you can make the repayments.
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I didn't state otherwise.

OP went from paying the card off in full every month to whacking a £2K vanity purchase on it in a matter of minutes!
 
I think all lenders tend to devise their own 'scoring' system, so getting your credit rating from Experian or whoever may not be of massive use if some company you want to borrow from doesn't use it.

Having said that, Noodle is pretty cool. It's free and lets you see what credit checks you've had done against you, any bad debts and such. No harm in using it :).
 
[TW]Fox;26192409 said:
It's not a score, it's simply a record which lenders can use to decide if they wish to offer you credit and on what terms.
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But they are making a decision based on your credit record, therefore there is an arbitrary scale involved for lenders albeit not an actual 'score'. Lenders don't examine every application for credit manually, there could be something (or not enough) on your credit record for an application to be flagged for either a referral or a denial. So to call it a 'score' isn't a far stretch from reality, unless you're being really pedantic. Everyone knows what is meant by 'credit score'.
 
Stop saying there is no credit score, you all clearly understand what the guy means and just saying, "No such thing as a credit score." literally helps nobody at all.

I've just gotten one my self with the intent of buying fuel on it and then paying it off at the start of the next week when my expenses get paid back. So hopefully I get some credit history.
 
I started to build up my destroyed credit rating with these cards - first a Barclaycard Initial, then a Shout Visa, and now Capital One at an awful rate - but I'm finally getting credit on 'normal' purchases, and my credit score is shooting up too.

I know there's no such thing as a score, but using Check My File gives you a useful indication of how creditworthy a lender is likely to see you.
 
mattyprice4004 said:
I started to build up my destroyed credit rating with these cards - first a Barclaycard Initial, then a Shout Visa, and now Capital One at an awful rate - but I'm finally getting credit on 'normal' purchases, and my credit score is shooting up too.

I know there's no such thing as a score, but using Check My File gives you a useful indication of how creditworthy a lender is likely to see you.
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How come you switched between a few different cards?
 
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