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Thread: Credit card help!

  1. #1

    Credit card help!

    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?

  2. #2
    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.

  3. #3
    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 ��

  4. #4
    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

  5. #5
    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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