A question about money,raising your credit limit ?

mazza7282

mazza7282

mazza7282

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If one wanted to attempt to higher his credit limit how on earth would you go about it ?

I'm thinking of getting a credit card, and making one purchase and making the minimum repayments each month, that would meet the criteria for improving a credit score would it ?

id attempt to find one of these 0% on purchases or something as im not looking to transfer any balances ?

I wouldn't class myself as financially overcommited and I have no real need for a card, although I am just looking at a few options here.

Any ideas ?
 
mazza7282 said:
If one wanted to attempt to higher his credit limit how on earth would you go about it ?

I'm thinking of getting a credit card, and making one purchase and making the minimum repayments each month, that would meet the criteria for improving a credit score would it ?

id attempt to find one of these 0% on purchases or something as im not looking to transfer any balances ?

I wouldn't class myself as financially overcommited and I have no real need for a card, although I am just looking at a few options here.

Any ideas ?
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You don't need a card, but you want to get one and raise the limit.

O_o

Any particular reason?
 
he means raise his credit score.

Yes get a credit card and just set up a DD to pay it of in full every month. Check all address match for your financial dealings. Make sure you are on the electoral register.
 
mazza7282 said:
I wouldn't class myself as financially overcommited and I have no real need for a card, although I am just looking at a few options here.
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If you get a credit card, max it out and then can only afford to pay back the minimum each month then you will be financially overcommitted. You will also be utterly ripped off in terms of total repayment. If you need to make a large capital purchase, get a loan not a card.

Either way paying the minimum won't get your limit up as it indicates you are already stretched, so they'll love the interest you are paying but won't give you more in case you turn bad. Regular use and regular paying it right down/off completely is usually what gets you limit put up in my experience.
 
mazza7282 said:
If one wanted to attempt to higher his credit limit how on earth would you go about it ?

I'm thinking of getting a credit card, and making one purchase and making the minimum repayments each month, that would meet the criteria for improving a credit score would it ?

id attempt to find one of these 0% on purchases or something as im not looking to transfer any balances ?

I wouldn't class myself as financially overcommited and I have no real need for a card, although I am just looking at a few options here.

Any ideas ?
Click to expand...

Your credit rating will increase as long as you run the account within the terms and conditions i.e. don't exceed your credit limit and makes sure you pay at least the minimum payment each month by the date stated. I wouldn't take out a card just for the sake of it though! If your looking for somewhere to start, try Capital One. I'm not sure about their introductory period on purchases but they gave me a card with a £100 limit and extremely high APR (which was good as it put the fear of God in me and meant that I always paid it in full)! when I was 19 and that really helped up my credit rating. I still have the account now 5 years on but with a £3,000 limit :)
 
El Jimben said:
Your credit rating will increase as long as you run the account within the terms and conditions i.e. don't exceed your credit limit and makes sure you pay at least the minimum payment each month by the date stated. I wouldn't take out a card just for the sake of it though! If your looking for somewhere to start, try Capital One. I'm not sure about their introductory period on purchases but they gave me a card with a £100 limit and extremely high APR (which was good as it put the fear of God in me and meant that I always paid it in full)! when I was 19 and that really helped up my credit rating. I still have the account now 5 years on but with a £3,000 limit :)
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I spoke to capital one on the phone, and they advised me to apply online for there basic card, so i did and got approved just waiting for stuff in the post.

They say that it is especially for people wanting to up there credit rating, so i took the plunge. I plan to make a few low budget purchases on it and pay whatever needs to be paid on it I guess. Although I almost threw up over the APR rate but I guess i gotta start somewhere, espcially as i'll be looking for mortgage in well a year or so.

Thanks
 
Just make sure you pay it off in full every month (once any introductory period has finished, during which you should only be making the minimum payment) and you will have no problems - the APR is meaningless as long as you do that.
 
Just remember tho if your limit is £100 then dont spend more than £75 as the interest would take you over your limit
 
MeatLoaf said:
Just remember tho if your limit is £100 then dont spend more than £75 as the interest would take you over your limit
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Ahh yea I didnt realise about that, ill bear that in mind, i also took out like death and job loss cover which is like 79p per £100 per month.

So the limit includes the interest too, i might have missed that in the terms, ill have another read of it. just to be on the safe side .....
 
mazza7282 said:
i also took out like death and job loss cover which is like 79p per £100 per month.
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Cancel it straight away IMO. That's how banks etc make a lot of their money... selling you worthless/pointless insurance. Having said that, I did exactly the same thing when I started out because the whole idea of having a credit card worried me so much. Like you, I only got my Barclaycard in order to build up a credit history, making regular purchases and paying the card off every month without fail. (You don't need to keep a balance on the card to build up your score).

If you had a permanent balance of £5k on the card, were worried about losing your job, and had a family to feed, the insurance might make more sense. But that's not your situation, and these things are notorious for not paying out anyway.

Andrew McP
 
Sorry for the hi-jack but I'll be looking at getting a credit card soon, for someone whos never had a credit card and has a standard credit rating should I be looking at something like this? http://www.capitalone.co.uk/creditcards/capital-one-classic.jsf

Secondly what do they mean when it says "0% on balance transfers", what balance are they refering to? And also, does "0% on purchases" mean that usually you'll be charged for making a purchase :eek:.
 
weringo said:
Sorry for the hi-jack but I'll be looking at getting a credit card soon, for someone whos never had a credit card and has a standard credit rating should I be looking at something like this? http://www.capitalone.co.uk/creditcards/capital-one-classic.jsf

Secondly what do they mean when it says "0% on balance transfers", what balance are they refering to? And also, does "0% on purchases" mean that usually you'll be charged for making a purchase :eek:.
Click to expand...

For what I thought, balance transfers were balances that you transfer from another credit card, or loan or someother sort of situation taken out on credit.
So for example, you got a new card, although you wanted to transfer you loan to your card, the card would pay off the loan, although that credit would then be on your credit card and the reason for you doing this, would be to get a better APR rate ?

And the purchases are well, the card issuer would charge you however much interest per item you purchased on your credit card, because afterall, they are lending you the money to purchase that product.

........................ For everyone else, is that right ??? tell me if i've got it all horribly wrong.
 
Thanks mazza, I knew you had to pay interest on purchases but I wasn't sure whether the "0% on purchases" meant interest or a one-off charge ffor making a purchase.

30% APR sounds high though, I assume theres no chance of me gettting anything lower than that for my first card.
 
30% does appear very high, there are so many options it pays to look around. There are probably some suggestions at www.moneysupermarket.com

Take this as an example:

http://www.natwest.com/personal02.asp?id=PERSONAL/DAY_TO_DAY/CREDIT_CARDS/CLASSIC

The 0% on purchases for 6 months means anything you buy for the first 6 months (remembering to keep below your limit!) will not incur an interest charge; you only have to pay the minimum amount each month. If at the end of the 6 months you pay off the entire balance you won't have paid any interest at all. After that, to avoid paying interest you will need to pay of the balance in full each month. Anything you don't pay off after the first 6 months is charged at 12.9%. At this point some people would transfer the balance to a new credit card offering 0% on purchases, and so on. Hence the information about balance transfers. At one point balance transfers were free but these days most if not all providers charge a fee to transfer a balance, but it isn't usually that large.

That is my understanding, if it is wrong I am sure someone will correct it. :)
 
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