Using my first credit card - some questions.

20
Posted 25th Nov
Following on from my previous thread about applying for a credit card; I have been approved for one for the first time in my life.
I feel very grown up now.

I wanted a credit card to build my credit score and for added security when making purchases.

Just needed to ask - if anyone can answer these questions for me please:

1. Building the credit score
Say I do my weekly shop and pay using my credit card. Later that night I pay it off. Will that be ok? Or do I have to wait for some time before I pay it off in order for it to register as borrowed then paid off. Does that make any sense?

2. Can I use my credit card for everything? Just like I use my debit card?

3. How do I qualify for credit card protection? Is there a minimum amount that has to be spent before I can qualify and for how long does the protection last?

4. Am I protected for purchases from overseas eg gearbest etc?

5. What does it mean by 0% foreign transaction fees?

Thank you
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20 Comments
You will have to wait a couple of days to pay it off as transactions start with pending...

the transaction has to be over £100 for credit card protection but I think as long as you pay a £1.00 of it on the credit card you get protection....

you can normally use it everywhere like a debit card, but depends on what type 2 of my cards I can use everywhere but my Amex not so much....
Just clear it monthly, you’ll incur no charges and you’ll have that cash in your bank a little longer so you’ll gain a little interest over the years.
Don't overthink this. The key thing to getting a decent credit score is not to miss ANY payment date on your statement. To make sure set the repayment for the entire statement balance to be repaid each month automatically from your bank account. This should have been covered in the application process when they ask you if you want to make minimum replayments or the whole statement balance. If unsure ring them and set it up.
Then just use the card as you probably have been doing in the past using your debit/bank card. If the credit limit is less than usual monthly spend use the credit card app to monitor your balance. Exceeding the credit limit will mark you down, getting very close to it repeatedly will probably result in an increase in the credit limit after a few months.
I have been doing this for years and it works fine.
What does the credit card protection cover for transactions of over a 100 pounds ?
toonsquirel25/11/2019 12:10

Just clear it monthly, you’ll incur no charges and you’ll have that cash in …Just clear it monthly, you’ll incur no charges and you’ll have that cash in your bank a little longer so you’ll gain a little interest over the years.


Most bank accounts are no longer interest bearing.
BigStart25/11/2019 12:42

What does the credit card protection cover for transactions of over a 100 …What does the credit card protection cover for transactions of over a 100 pounds ?



moneysavingexpert.com/sho…es/
adam_holcombe25/11/2019 12:57

https://www.moneysavingexpert.com/shopping/section75-protect-your-purchases/


Thanks dude
When I took out mine I just asked for payment in full to be taken. That way the bill is paid each time in full with no interest. Remember though as it's paid in arrears, you need to make sure you have the money in your bank to pay it when it is taken. Sometimes the gap between purchase and money taken can be quite a while.

A side note which I was told by mortgage adviser (but may not apply to you).....if you have both a credit card and mortgage with hsbc, defaulting on the credit card gives them the right to affect / cancel your mortgage. Which is a bit worrying. Plus that extends to first direct.

Hope that helps
Fake thread
Here’s some advice kid just because you have a card doesn’t mean you have endless money just you remember that just because you just have to tap your card on the card reader
Bargainhead25/11/2019 11:31

You will have to wait a couple of days to pay it off as transactions start …You will have to wait a couple of days to pay it off as transactions start with pending... the transaction has to be over £100 for credit card protection but I think as long as you pay a £1.00 of it on the credit card you get protection....you can normally use it everywhere like a debit card, but depends on what type 2 of my cards I can use everywhere but my Amex not so much....


Thank you. That's very helpful!
Rune_2H25/11/2019 11:40

Comment deleted


Unfortunately due to my low income I qualify for very few cards.
toonsquirel25/11/2019 12:10

Just clear it monthly, you’ll incur no charges and you’ll have that cash in …Just clear it monthly, you’ll incur no charges and you’ll have that cash in your bank a little longer so you’ll gain a little interest over the years.


Ok. That's helpful. Although I know what I'm like. I worry when I owe something so I'll be keen to pay it off
airbus33025/11/2019 12:19

Don't overthink this. The key thing to getting a decent credit score is …Don't overthink this. The key thing to getting a decent credit score is not to miss ANY payment date on your statement. To make sure set the repayment for the entire statement balance to be repaid each month automatically from your bank account. This should have been covered in the application process when they ask you if you want to make minimum replayments or the whole statement balance. If unsure ring them and set it up.Then just use the card as you probably have been doing in the past using your debit/bank card. If the credit limit is less than usual monthly spend use the credit card app to monitor your balance. Exceeding the credit limit will mark you down, getting very close to it repeatedly will probably result in an increase in the credit limit after a few months.I have been doing this for years and it works fine.


Thank you for this.
doncoop25/11/2019 14:02

When I took out mine I just asked for payment in full to be taken. That …When I took out mine I just asked for payment in full to be taken. That way the bill is paid each time in full with no interest. Remember though as it's paid in arrears, you need to make sure you have the money in your bank to pay it when it is taken. Sometimes the gap between purchase and money taken can be quite a while.A side note which I was told by mortgage adviser (but may not apply to you).....if you have both a credit card and mortgage with hsbc, defaulting on the credit card gives them the right to affect / cancel your mortgage. Which is a bit worrying. Plus that extends to first direct. Hope that helps


No mortgage (I rent) so that won't be an issue but it helps to know.
CBS-_GAMING25/11/2019 18:02

Here’s some advice kid just because you have a card doesn’t mean you have e …Here’s some advice kid just because you have a card doesn’t mean you have endless money just you remember that just because you just have to tap your card on the card reader


Just wanted to say thanks to everyone for taking the time to so kindly respond to my questions.
As Martyn Lewis always says... pay IN FULL - his show is on on Tuesday
matth999925/11/2019 22:57

As Martyn Lewis always says... pay IN FULL - his show is on on Tuesday


I'll check it out

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