Credit Cards and Credit Rating

Pexbo

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I've always been pretty unsensible with money. So, surprisingly sensibly of me, I've never owned a credit card and because of this have always spent within my means.

I was chatting to my Dad the other day and mentioned that I have no idea about my credit rating and as I'll probably want to start getting on the property ladder at some point in the next 5 or 10 years, he thinks I should start working on it.

He said I should be looking to get a credit card or three and use them rather than my debit card, while using my debit card to keep the balance up on them.... or something like that.

So can anyone explain it to me a little better and reccomend any good credit cards with benefits and APR's ect ect...?
 
I couldnt live without my credit card. I always pay my bills on time but its a vital part of my household

I have no idea what my rating is, I assume that I pay everything on time means it is good
 
Randall Flagg said:
I couldnt live without my credit card. I always pay my bills on time but its a vital part og my household

I have no idea what my rating is, I assume that I pay everything on time means it is good
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What card do you use and why?
 
I only got a credit card because my Dad said I'll need to boost my credit rating with it before I look to buy a house, so I would use it heavily but pay it off the same month with the funds from my debit, and then after I applied, I found out my rating was 999 anyway, making it all a bit pointless. Now I don't use my credit card out of fear. Fear of everything.
 
niMic said:
I have no idea about credit ratings. Do we have them in Norway? Probably.

I'll probably be fecked whenever I try to get a loan for a house.
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Some of the credit check firms will give you a rating from 0 to 100, but that's just based on your income to loans ratio. Even if you get a mark for not paying your bills on time, which can only happen after it goes to a collection agency (inkasso) and they don't get what they're owed, it is removed once you actually pay it. So to answer your question, no, not really!

Banks here look mostly at your capital (10% is the requirement these days for first time home buyers, but it will apparently be increased to 15% at some point in the future) and your relationship with the bank, as well as the degree to which you're in control of your own economy. A monthly deposit to your BSU account for a few years will do you a world of good when you're trying to get that loan.
 
Hectic said:
I only got a credit card because my Dad said I'll need to boost my credit rating with it before I look to buy a house, so I would use it heavily but pay it off the same month with the funds from my debit, and then after I applied, I found out my rating was 999 anyway, making it all a bit pointless. Now I don't use my credit card out of fear. Fear of everything.
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Well I checked my score with Experian and it's 986, but I had a Vodafone payment when I was 20 that I defaulted on (£80 feckin quid?! It seemed a fortune back then!) and also I had a Barclays account that I went overdrawn with and missed a couple of Payments which apparantly Defaulted again. Both of which were in 2007 so I have to wait another 2 years before they are off my record.

So what I have learnt is that Experian is bollocks. I have had a completely clear record for the last 4 years and made every payment but because of those 2 things 4 years ago it seems I can't get a Credit Card just yet despite earning a good wage and having around 8 or 9 payments that I successfully make every month.

Surely there is some way of getting around this and actually talking to someone rather than just a simple credit check.... computer says no?
 
I've only had a credit card once, and I managed to get a charge for not using it. As long as I never need to spent £10k I dont have on something flippantly, I'll never have one. Cheque book will do fine for the moment thanks very much.
 
Mockney said:
I've only had a credit card once, and I managed to get a charge for not using it. As long as I never need to spent £10k on something flippantly, I'll never have one. Cheque book will do thanks very much.
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That's how I have been up until now. Spending only the money that I have so I can't get any silly charges or Interest accrued.

It's only since my Dad said that if I had a couple of Credit Cards going for the next 5 years and used them both to pay my bills and whatever else, but always paid them off at the end of the month. When I go to get a mortgage, I'll have an excellent credit report and will be far more likely than if I just have a bank account with money going in and then going out. It shows you can be trusted with someone elses money rather than your own I guess.
 
I have two cards, I never use one(though they've still sent me two updates) and I barely use the Tesco one(clubcard points ftl)....sometimes ill spend a bit on it and pay it back over two months instead of one just to build the credit. Using it and paying it without any actual interest to the bank doesn't actual do anything to improve your rating, so if you are going to do that, might as well just stay as your are.

Can't be that hard to get, my unemployed sister got one last year and hasn't worked since she was like 21.
 
Pexbo said:
That's how I have been up until now. Spending only the money that I have so I can't get any silly charges or Interest accrued.

It's only since my Dad said that if I had a couple of Credit Cards going for the next 5 years and used them both to pay my bills and whatever else, but always paid them off at the end of the month. When I go to get a mortgage, I'll have an excellent credit report and will be far more likely than if I just have a bank account with money going in and then going out. It shows you can be trusted with someone elses money rather than your own I guess.
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There's definitely a use in having them, but while I don't need to, I'll avoid them. Mainly because I'm incredibly disorganised and bad at finances & would easily incur a bad credit rating. I almost had my car towed the other day for a succession of unpaid driving offences which were entirely due to my disorganisation.
 
I got into a lot of debt about 5 years ago and am slowly paying the cnuts off. Wish I'd never applied for the feckin things in the first place.
 
I paid my credit card off 2 weeks back, I like to keep the balance at ZERO just in case I might need it in an emergency.
 
I pay for literally everything by credit card, the points for doing so is fantastic, probably worth more than a grand a year in gift cards, money off flights etc, wouldn't do it any other way
 
I'm looking to get one just for the protection it offers... However, I spend very little (I save nearly 60% of my salary) - is it worth getting one? I will literally be using it to buy one piece of expensive electronic equipment every 4 years or something, as I feel cash is a lot safer than any card.

I have no intention of getting a mortgage any time soon - far too risky for my tastes and I don't think I'll be in London forever.
 
Plan M said:
Why is this still in the Entertainment Forum?

:lol:
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Because it's the most entertaining thread I've ever made.

To put that into perspective, I'm the guy who made the thread entitled "I just sneezed" which was, quite randomly(!!!), about a twinge in my prostate.
 
Pexbo said:
Well I checked my score with Experian and it's 986, but I had a Vodafone payment when I was 20 that I defaulted on (£80 feckin quid?! It seemed a fortune back then!) and also I had a Barclays account that I went overdrawn with and missed a couple of Payments which apparantly Defaulted again. Both of which were in 2007 so I have to wait another 2 years before they are off my record.

So what I have learnt is that Experian is bollocks. I have had a completely clear record for the last 4 years and made every payment but because of those 2 things 4 years ago it seems I can't get a Credit Card just yet despite earning a good wage and having around 8 or 9 payments that I successfully make every month.

Surely there is some way of getting around this and actually talking to someone rather than just a simple credit check.... computer says no?
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Try capital one, i got into a bit of debt 5 or so years back, nearly died and was off work 14 weeks, had taken out a loan to buy a car about 3 months before, had no savings and a credit card with a £1500 limit which id clear every month, in them 14 weeks i managed to miss payments on stuff and max out the card, managed to finally pay everything off earlier this year

Capital one gave me a credit card, its only a £200 limit but i had been refused elsewhere, it goes a little way to repairing my credit rating (hopefully)
 
Try credit expert, use the 30 day free trial and they will help you with advice on credit rating, credit cards etc for people with previously bad credit.
 
20solskjaer said:
Try capital one, i got into a bit of debt 5 or so years back, nearly died and was off work 14 weeks, had taken out a loan to buy a car about 3 months before, had no savings and a credit card with a £1500 limit which id clear every month, in them 14 weeks i managed to miss payments on stuff and max out the card, managed to finally pay everything off earlier this year

Capital one gave me a credit card, its only a £200 limit but i had been refused elsewhere, it goes a little way to repairing my credit rating (hopefully)
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I got a Capital One card 6 or so months back, £200 limit as I have bad credit anyway £1000 student overdraft and unpaid phone bill that I always left. Every other credit card rejected me except them. Must of done wonders as Barclays have pre approved me on one of there cards.
 
I have 7 Credit cards, but I never used it as installment, just for convenience sake

CC can be pretty beneficial if you knew how to manage it, they give away discounts and promo stuff everyday that I always ended up with 20-50% discount on restaurants and merchants.

Just NEVER owe them anything, always pay them on the date and you'll be fine
 
Just got a Nationwide credit card the other day finally- took the cnuts eight months and I had to go into the branch about three times and make umpteen phone calls.

Anyway, it costs nothing and if you buy stuff online or book holidays with it, then if the goods don't come or the holiday company goes bust, the bill lies with Visa not me. Basically the customer protection is very good- just only use it in these types of situations and pay it off in full each month.
They also throw in free travel insurance, so if you use it sensibly it is a benefit not something that will send you to the poor house.
 
Hal9000 said:
Try credit expert, use the 30 day free trial and they will help you with advice on credit rating, credit cards etc for people with previously bad credit.
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Yeah that's what I've done and it gives me a Credit Rating of 986 which is "Excellent", but it means sod all because they use a different system to the actual Credit Score most companies use.
 
I was getting my credit history in order a couple of years ago before buying an apartment and found the biggest thing was being on the electoral register at the current address. I had always been on the roll from my parents address which meant my credit history (phone bill, utilities and credit card) were linked to different places. Experian is useful for checking your personal information on your credit report is up to date but their credit score is completely pointless.
 
Why is this in the entertainment forum. Is Pexbo going to entertain everyone by running up irresponsible debts and ruin his life / go to jail?
 
Random story of the day: back in my student days, I casualled at Vodacom over weekends. A guy came in with a Black Diners Club card (whcih generally you can only get if you earn a certain high salary per annum), but once he got credit vetted - Vodacom turned him away for a cellphone contract. :lol: Needless to say the guy went absolutely mental with my manager back then, using the classic "do you know who I am" and "do you know what this card means" lines :lol:.

To the OP, I'd actually say open a credit card, ASK them for an extremely low credit limit (like $200 or something) and just pay lots of money in it - to get it to a debit balance (the interest rate on some credit cards for debit balances are quite decent, most times higher then cheque accounts anyway). Then use the credit card (now a "debit" card, technically) to pay your bills off and live of. etc.

Also, open some retail accounts - and any clothes you are about to pay for cash, buy it on your account and just pay the cash in on the account immediately. All this should give you a very nice credit score.
 
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