Can anyone help with Credit card advice?
Mar 2, 2009 Credit Advice
Hi,
I have been advised that one way of making my credit score/rating better is to get credit cards.
I was going to apply and then when the cards come cut them up as I dont want to be using them. I was just wondering if I never use the cards do I still have to pay a monthly fee or any payments???
The cards are with Halifax and HSBC.
Thanks.
Just make sure that they have no monthly fees, however getting them and never using them will not improve your credit score as lenders want to see how you handle credit…if you pay it back on time and whether you only ever make the minimum amounts etc…so you should buy one thing on each card before cutting them up
March 2nd, 2009 at 2:21 pm
Some cars have a monthly / annual fee.
By doing what you suggest with the cars though, will not have any affect on your credit rating, as you will not be using them.
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March 2nd, 2009 at 2:55 pm
The best way is to apply for credit cards, use them but pay off the balance in full every month. That shows that you can use credit responsibly. Don't apply for more than two or it looks suspicious. Both Halifax and HSBC do a range of cards, some with a fee and some without. Check the details carefully online and pick one Visa and one Mastercard account with no fees.
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March 2nd, 2009 at 3:30 pm
I'd agree, use the cards (reasonably, of course) and pay them off promptly. That will give you a reputation as a reliable borrower, which will help.
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March 2nd, 2009 at 3:57 pm
I'm not sure if they'll make you pay but just having the cards isn't going to do anything for your credit you actually need to have one. The whole point of them helping is so you can use them and pay it back. Don't pay it back at once, do the min payments or just a little more. I'm not sure why that's the best way but that is what will help you. HSBC is horrible. I've has issues w/them and so have tons of people I know. You don't need to max it out just spend like $50 a month or something and then pay it off as the bill comes in eventually your credit will be great.
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March 2nd, 2009 at 4:10 pm
Just make sure that they have no monthly fees, however getting them and never using them will not improve your credit score as lenders want to see how you handle credit…if you pay it back on time and whether you only ever make the minimum amounts etc…so you should buy one thing on each card before cutting them up
References :
March 2nd, 2009 at 4:46 pm
This is the most important tip on building yo
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March 2nd, 2009 at 4:53 pm
Having credit cards & never using them will not improve your credit. If you get a credit card, use it for something small, say $20.00. Then when the bill comes in pay it in full. Use each card at least once every six months to keep them active. That will help raise your credit score.
Do not take cards with annual fees. Check with your bank or credit union for advise in building your credit.
Good Luck
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March 2nd, 2009 at 5:33 pm
I can't see how getting 2 cards and not using them will help. I have 1 credit card with Halifax and I always use it with the the full intention of paying the full amount each month – not spending what I don't have.
By doing this my limit started off at £500 and slowly went up to £4500 (I had a letter yesterday).
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