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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Credit Cards... Does it cost...

108 replies

cjt110 · 29/05/2018 14:42

...just to have one?

My credit rating is pants. I've never had any credit cards or loans in my life. As such, when I go to, for example, get a new mobile phone it tells me my credit rating is poor and I am rejected.

My husband said to apply for a credit card, get it and then cut it up as it will help me improve my credit rating. Applied for a capital one card - am activating online and it's asking me about setting up a direct debit. Surely if I have a card and don't use it, I don't need a direct debit because they won't charge me anything? Or am I being stupid?

OP posts:
Tina851 · 29/05/2018 16:05

Can you pay off as soon as you use it?
Yes you can
Yes you can, BUT DO NOT DO THIS. You pay it off in full when you get the statement. Do not pay it before you get the statement, otherwise you confuse the system and will miss that month's payment, if that makes sense? Do not pay the bill until they ask you for the money.

cjt110 · 29/05/2018 16:05

Just had a quick look online at Equifax and an old mobile phone contract which I know terminated at least 2 years ago shows me as having made late payments since October 2016...!!

OP posts:
cjt110 · 29/05/2018 16:07

My partner had a credit card in the past, got himself in a pickle and paid it off. For the 14 years I have known him,. he's not had any debt, other than the usual mortgage debt

OP posts:
Tina851 · 29/05/2018 16:12

you don’t need to wait for the bill to be sent if you don’t want to
YES YOU DO, otherwise the credit card company will receive the payment in the wrong statement month (a month early), and won't receive the payment in the appropriate statement month, so you will receive black marks in your credit history for missing payments

cjt110 · 29/05/2018 16:19

This is what Equifax are showing me from an old mobile phone provider. I have had my current phone for 2 years from another provider so what the hell is this about???

Credit Cards... Does it cost...
OP posts:
cjt110 · 29/05/2018 16:20

Sorry when you hover the cursor over the red and yellow boxes it says "X payments late"

OP posts:
MyDcAreMarvel · 29/05/2018 16:21

Use a credit card and set up a dd to pay the balance in full each month.

MyDcAreMarvel · 29/05/2018 16:28

I think you owed £43 two years ago and never paid it.

cjt110 · 29/05/2018 16:29

They might think I did, but I can be certain I didnt. Have just called them (Carphone warehouse) to ascertain what's what. Everythign else according to Equifax is green and fine.

OP posts:
russiandwarf · 29/05/2018 16:29

Regarding the Equifax report - you need to contact your old mobile phone provider ASAP and tell them you need them to update your details if this is incorrect. This happened to me when my bank lost a payment 🙄 I made them issue a letter stating there was no default of payment so I had it in writing in case they didn't update my information for the credit report. It will take about 2 months for the credit report to get updated once you have rectified this but you must chase it up. This will be affecting your score.

Tina851 · 29/05/2018 16:30

There's your answer. You've owed your mobile provider £43 for 18 months. Pay it off now, and it'll be clear in 6 years.

cjt110 · 29/05/2018 16:33

I havent owed them anything Tina I dont understand what 6 years means? If I dont owe them anything?

I have spoken with them and the lady can see that that account is still live. She cannot see why and is speaking with their "back office" team and calling me back.

russian I will ask them to do the same. Thanks for sharing your advice.

OP posts:
Moominfan · 29/05/2018 16:34

Clear score is really good to check credit history and is completely free. I've really improved mine by following their guides

Tina851 · 29/05/2018 16:35

If you are sure you don't owe them anything, then you need to tell them to correct your credit history. Six years refers to the time it takes a default (or any other closed account) to fall off your credit history

russiandwarf · 29/05/2018 16:35

They need to provide you with a statement telling you why they think you owe the money and what for - if you think you paid it then go back to your bank and find the payment (bank can help if you don't have the statements) and prove to them in writing when you paid it and how. Literally took 2 years of harassment from a power company once to prove we had paid off our account with a cheque they had misposted to someone else's account!

cjt110 · 29/05/2018 16:43

russian So it's going to maybe be a bit of a battle? :( Not sure I can deal with that at the mo

OP posts:
TitZillas · 29/05/2018 16:50

My husband is having a similar fight with ‘3’ at present over his company mobile phones. They keep sending final demands - for bills which he has paid and contracts already terminated. Nightmare.

Firesuit · 29/05/2018 16:55

I know OP has seen her Experian record now, if she hadn't I was going to say it might be possible to kill two birds with one stone, get a credit card from Barclays. Barclaycard allow me to see my Experian score when I login to their web site.

MeMyShelfandIkea · 29/05/2018 17:08

@cjy110 I had the same thing with my Orange phone when I changed my number and contract type. Apparently I'd needed to fill in a form or something to officially terminate my old contract with them even though my new contract was also with them. They texted reminders to my old phone number so of course I didn't get them! I only have a year or so left before it disappears off my credit file so I'm just going to let it run its course.

I've also recently set up a credit card for the same reason having never had one before, I just put a small Amazon purchase (

AlmostAJillSandwich · 29/05/2018 17:38

I'm 28, disabled with crippling MH issues to the point i didn't even finish highschool, have never worked.
Only income is ESA and PIP, and my only living parent is my full time carer, so his only income is carers allowance, plus maybe £2k a year max from my mums pension (he died young).
I'd been debating getting one for a few years, ever since one of my friends mentioned when she was starting UNI she was advised to get one to build a credit rating.
So 3ish years ago, having started getting flyers addressed to me in the post that i'd been "selected" to be offered one, i applied to either 2 or 3 of them online, got rejected. (ignore those flyers, they send them out to everyone, they don't actually check your circumstances beforehand).
Gave up on getting one til my dad birthday was coming up. He used to collect those bloody Meerkat teddies, and if you got a credit card through them you could get one, so since i wanted one ideally anyway, i applied through the compare the market website, specifically in the section for people with poor credit rating.
Being on benefits and not employed wasn't an issue, all they really asked was how much money do i have access to annually.

I was approved for a £500 limit, and the card itself has a shockingly high 34.9% or there abouts APR but i didnt actually intend to use it.

It has been such a lifeline! my statement date is between the 2nd and 4th of each month, anything i put on right after the new statement is issued (quarterly electricity bill im looking at you!) i get almost 2 full months to pay off as it goes on the statement for the month after and doesn't need paying til the 27th-29th. I do try to go some months without putting anything on it at all, and it's usually only bigger things like the electricity bill and the occasional tank of petrol unless we're having a bad month.

My credit score at the time of getting it, was the lower end of "fair", mid 500's or something i think. Up until that point i'd only ever had a mobile contract, which has always been paid direct debit on time.
Last i checked a few weeks ago (did just try to check but browser is reporting an error in the experian site security atm) my credit score was somewhere between 960 and 980, i cant remember exactly, but right at the top end of "excellent".

Maybe i could now switch and get a credit card with a lower APR, i don't know, i've never had to pay interest, but that doesn't mean i might not have to put more on it than i can pay off in future in an emergency. Still, my unemployment will probably be a major red flag and auto no to most lenders, and i don't want to trash the score by them checking it and rejecting applications. Might be safer/easier to just stay with the lender im currently with, or see if they might have a different card to switch to.

AlmostAJillSandwich · 29/05/2018 17:41

Oh, meant to say i don't pay it off by a direct debit that comes out automated or pre scheduled, but it is considered direct debit when i pay it, i just choose when and how much.

Tina851 · 29/05/2018 17:54

Barclaycard allow me to see my Experian score when I login to their web site.
Barclaycard only allows you to see your score, not your history, which is of no help

Tina851 · 29/05/2018 18:01

www.moneysavingexpert.com/creditclub
If you want to check your credit report for free

DoJo · 29/05/2018 18:22

Plenty of good advice here OP, but if you have enough to buy a car in your savings account, why would you take out a loan which is bound to require you to pay back more in interest than your savings would be earning?

inabeautifulplace · 29/05/2018 18:24

Yep, that MSE credit club is ace. It'll show you your chances of getting the best cards - even if you have a poor credit rating.

If you're a disciplined spender, credit cards are great. You can get long 0% deals on spending, and save the equivalent in a savings account. Then transfer the balance onto another 0% card and keep going!

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