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    Hi, without me sounding dumb i was just wondering how do i use a credit card in order to avoid a bad credit score? Obviously paying on time but how does it work? The earlier you pay the better?
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    (Original post by Koolin123)
    Hi, without me sounding dumb i was just wondering how do i use a credit card in order to avoid a bad credit score? Obviously paying on time but how does it work? The earlier you pay the better?
    What is your limit Koolin? Just take out some notes every month, and pay them back, or at least the minimum every month, and never go over your limit or miss a minimum payment, and your cards limit should increase every six months or so assuming you continue to use them sensibly like this?
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    Use it like you would a debit card. Don't use your credit to buy something that you can't otherwise afford, and pay your balance off in full every month.
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    Dont exceed the limit and pay it off in full before the end of the next charging period. Do nIf you arent going to pay off in full then make sure you repay at least the minimum amount. All these details will be on your statement.
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    (Original post by Koolin123)
    Hi, without me sounding dumb i was just wondering how do i use a credit card in order to avoid a bad credit score? Obviously paying on time but how does it work? The earlier you pay the better?
    you can also sign up with noddle or clearscore, which are free credit checking agencies, and also give you your report for free. Also there is experian, which is probably the best credit reference agency, but also the most expensive. They do give you the first month free however, then after that charge £14.99 pm
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    (Original post by estel)
    Use it like you would a debit card. Don't use your credit to buy something that you can't otherwise afford, and pay your balance off in full every month.
    But use your debit card to withdraw cash. It's more expensive to withdraw cash using a credit card.
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    (Original post by Koolin123)
    Hi, without me sounding dumb i was just wondering how do i use a credit card in order to avoid a bad credit score? Obviously paying on time but how does it work? The earlier you pay the better?
    If you want them to increase your credit limit, that means that you will have to show that you are using the card, at least somewhat on a regular basis. Granted it often is more expensive to use one of these cards, but by using it you are making the bank money, and this is why they will grant you extra credit in the long run. Because you are an asset to them. Granted you could just only use the card rarely, or not at all. But this is not profitable to the bank, and hence will most likely not see limit increases over time.
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    Your credit card limit also depends on your income.
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    (Original post by Tiger Rag)
    Your credit card limit also depends on your income.
    true
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    (Original post by Koolin123)
    Hi, without me sounding dumb i was just wondering how do i use a credit card in order to avoid a bad credit score? Obviously paying on time but how does it work? The earlier you pay the better?
    1. Put card in wallet.
    2. Go to club with the lads.
    3. Buy all the ladies a round.
    4. ?????
    5. Sex
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    (Original post by Koolin123)
    Hi, without me sounding dumb i was just wondering how do i use a credit card in order to avoid a bad credit score? Obviously paying on time but how does it work? The earlier you pay the better?
    the best one i have seen was the method on of my clients told me and to be honest he really doesn't need a credit card he runs a small advertising agency and makes £10,000 a month and he admitted to using it for the small stuff as i quote 'too lazy to read his debit statement on every p***y little purchase' so will just use the credit card for coffees, daily shopping trips and restaurant bills and will run a grand or two up every month on the credit card
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    Use a credit card but you should not exceed 50% of the credit limit regularly. Doing this would suggest a dependence on the card and this is bad. Basically, I wouldn't get too many and you should monitor them. Some card companies are sneaky, so make sure a DD is set up in full as soon as you open it up.

    I know AmEx were a little sneaky by only setting it to minimum when I first opened it, it's a good thing to check what the account is set up to do.

    But yes, it's good to get one when young as this will shave thousands off your mortgage in a few years (over a 30 year mortgage of course, but nonetheless, the net effect is worth it)
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    I tend to use mine if I want to buy more expensive items. For example, I've used it to buy things like my laptop, which cost me £350. You get more protection using a credit card if the item is more than £100, than if you use your bank card.
 
 
 
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