Credit Card practises

[speedlolita]

So the other day I applied for my first credit card and was accepted in about a minute online. lol internet

Basically I got this to start building a credit rating, as well as perhaps aid my horrible spending habits towards the end of the month.

I was thinking of maybe just putting my food expenses on it to start with and paying that off each month.

Does anyone have any advice on the subject that the bank may not be so up front about?

HSBC by the way.

[fuse]

The obvious one: set up a direct debit to pay off the full amount every month.

[QualityChimp]

Firstly, make sure you're going to pay it off at the end of the month. Don't see it as an emergency fund as that's a slippery slope.

Now that's settled and you're not going to get into debt on it, why not get a card that will benefit you, such as the Tesco or Nectar credit cards that gives you points. You don't notice them building up, but before long you get vouchers and discount offers. We've had meals out on the Tesco card and went to Legoland with Nectar points that quartered the cost.

Just don't get into debt!

[speedlolita]

I've actually got both of those already!

The occasional ?2.50 off of my lunch is nice.

[charlesr]

What they said ^^^. If you don't have the money in your current account to pay it off, don't put it on the card. Credit cards are there to earn you money from rewards, not to lose you money from short term expensive loans. If you ever fail to pay it off, then immediately cut it up and throw it away.

Why do you need to build a credit rating? Mortgage on the horizon?

[Brad]

Santander give me 1% back on all CC purchases. So, I pay for everything on it and have it set to pay off the full amount each month. Earns me a few hundred quid a year of free cash!

[Colin]

My first tip for when the card arrives is to immediately cut it up and never use it. People say they'll just do this or that, but 95% will spend more on it than they intended. I do admittedly have one with a ?30k limit, but there's not a penny on it and never will be as far as I'm concerned, I'm not really sure why I keep it.

[Brad]

I tried to buy my car with mine for the cashback!

[kryss]

Lol Brad.

"Hi, I need a temporary limit increase for a large purchase"
"Ok sir, how much do you need?"
"50 grand"
-click-
"hello?"

Limit increases and not paying it off straight away have gotten me. I have the money in the bank but keep my card almost maxed out otherwise the temptation to buy stuff lingers. I wish I could pay my rent on it though...

[eastyy]

i work for a credit card company

make sure you pay off the credit card in full each month you can set up a direct debit card in full but to be honest banks make mistakes so i would set up a direct debit for the minimum amount and pay off the rest manually

People often ask for there credit limit to be a certain amount to avoid temptation but that may affect credit file

[shaffy_oppa]

From my experience don't tell your mother you have one...

My family know I'm the nice one so mum's abused it to its limit. Now I'm paying it off, I also got a paytag and conveniently leave my phone at home when I go shopping.

[kryss]

My card was $500 secured against $1000 deposit to start with, then with much bitching they released the $1000 and upped me to $1000. About 6 months later they upped it to $3k without me asking. I generally owe $2k on it and get $180 a year from my 1% cashback.
Canadian banks are crazy though, I have to pay to take out cash and use my debit card so they basically coerce you into using your CC.

[endo]

I've actually got both of those already!

The occasional ?2.50 off of my lunch is nice.

I thought you said you've just applied for your first credit card? What QC means is you can get a credit card that also accumulates Nectar points as you use it. We got a Sainsburys one purely for doing the food shopping with, which gets paid off every month. The bonus is that you build up more points faster at the same time.

[Pavey]

My first tip for when the card arrives is to immediately cut it up and never use it. People say they'll just do this or that, but 95% will spend more on it than they intended. I do admittedly have one with a ?30k limit, but there's not a penny on it and never will be as far as I'm concerned, I'm not really sure why I keep it.

Bloke down the pub told me that having one and not using it is bad for your credit rating.

Any truth in that Easty?

['Press Start']

I am anther one that rinses my credit card with every purchase, then pays it off in full each month. I think I ended up with ?120 of club card vouchers over a year period, then with Tesco boost the voucher amounts are doubled, so that was ?240 I had to spend online at Tesco. New car seat and bike for my daughter sorted. Could have got a wii u but meh.....