To ask for some help with credit cards?

[Devina89]

So I’ve got a visa debit card. I’m with HSBC…
I never had a credit card and I am ashamed to admit that I don’t fully understand how they work.

could someone please explain on how credit cards work? 😳

I believe that it would be good for me to build up a good credit score but I’m totally lost on how and where to start…

Only use up to 30% of your total limit per month, so if your limit is £2000 then only spend £600 per month

One tip for anyone who may be unaware. I use my credit card for nearly everything, it's just easier. But for credit file purposes I don't like a balance of over 25% of my limit registering.

My limit is £1000 and I usually spend up to that amount. But two days before the statement date I make a one off payment to it of £750. Hence the balance on my statement is £250 is which is then claimed by DD.

The balance registered at credit reference agencies is the statement balance (for mine anyway - I'm assuming others are the same?). So my credit files show consistent utilisation of circa 25%.

After having got out of considerable debt with credit cards I now have two. One has a pretty high rate of interest but it's immaterial as both are paid off by standing order in full every month. I haven't so far had to use them for big emergencies but only for expenses like petrol I would have incurred anyway, or for holiday bookings I've budgeted for.

Having seen how credit card debt can spiral I couldn't let it get out of control again.

I'd say try to stay under 30% of the credit limit and don't use it for unplanned purchases if you can avoid it
Pay the bill in full every month if you can and either set up a standing order or set up a reminder.

Your debit card takes the money straight from your account. A credit card basically pays your purchases for you with their money and expects you to settle the "bill" at a later stage. I would always set up a direct debit, so I don't have to think about it. As long as you have money in your account (which sounds like you do) all is well. Have a look at different credit cards. Some offer you something in return. I buy lots on Amazon and have just applied for an Amazon credit card that gets me money off Amazon purchases. If you like traveling and flying then look for one that gets you air miles.

But surely you know to pay for holidays on a CC... how old are you.. 12?

Not really, no but I do have savings to cover broken appliances etc.

@kitcat15 I'm curious, does it make you feel good to put someone down or is it just that misery loves company?

Please make sure you do fully understand credit cards before you get one. Read lots and watch some Youtube videos.
If you have money and are only using it to build a good credit score then I would advise that when you set it up you set up a complete payment automatically of it each month from your bank account. Then make sure you check it each month to ensure the full balance has cleared.

So many people build up debt on
them.