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Credit card help! watch

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    Hi everyone,

    This is probably a really stupid question to ask, but I'm really confused over how credit cards work.

    So I want to get one to help build my credit rating and to protect purchases like flights and things but I'm confused with how paying them back works.

    Say I brought my petrol on the credit card and then paid it back at the end of the month, would I pay just the petrol money or would I have to pay interest on it as well?

    Thanks! 😃
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    You make the purchase with your credit card, and normally have a interest free period, which is normally 56 days. Therefore, you only repay the amount borrowed for the purchase, if you miss a repayment though the interest will hit you hard. CCs are a great tool if managed properly. Please note, using a CC will not improve your credit score, it will simply show lenders how responsible you are with your finances, which in turn is likely to strengthen the chance of you getting a mortgage/loan.
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    (Original post by King Leonidas)
    You make the purchase with your credit card, and normally have a interest free period, which is normally 56 days. Therefore, you only repay the amount borrowed for the purchase, if you miss a repayment though the interest will hit you hard. CCs are a great tool if managed properly. Please note, using a CC will not improve your credit score, it will simply show lenders how responsible you are with your finances, which in turn is likely to strengthen the chance of you getting a mortgage/loan.
    Thank you for your response! So I will literally only be paying for what I've brought not anything extra, that sounds much better than I thought 😃

    I didn't realise that credit cards don't count towards your credit rating. I thought they did because you can get a credit builder card? I was always told they would make it better and then in turn easier to get a morgage. If they don't then I might not get one 🙂
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    (Original post by AimeeLouLou)

    I didn't realise that credit cards don't count towards your credit rating. I thought they did because you can get a credit builder card? I was always told they would make it better and then in turn easier to get a morgage. If they don't then I might not get one 🙂
    They do count, I had absolutely no credit back in february and now I have a near perfect score just from using my card and paying it off each month in full. Halifax also suggested to me that it was a good idea to build my credit rating

    Basically it varies from card to card, mine is a student one with halifax so I can buy whatever I want (£500 limit) and I start paying interest one month after purchase but i usually pay it off in full each month so i don't pay any interest
 
 
 
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