Martin Lewis Post Tips on Using Credit Cards to Build Ratings – Best Deals | Personal Finances | Finance
Martin Lewis regularly urges savers to be cautious when using debt-themed products, but at the same time, he recognizes the need for a decent credit rating to get by financially. Today, the money-saving expert was interviewed by viewer Miranda on how one can build his credit rating under difficult circumstances.
“What I’d like you to do is go and do £ 50 a month of normal spending, things you would buy anyway.
“[Then] Make sure you pay off the card in full every month, preferably by direct debit so you never miss it as the interest rate is horrendous.
“That way you won’t pay any interest.
“You do this for a year, you will start to build that credit history, showing them that you are a good credit citizen.
“Then you can switch to some kind of more normal line of credit cards.
“So, oddly, in order to get credit, you need credit. How much credit will you get? Bad credit, go get bad credit, just make sure it doesn’t cost you.
Consumers of all kinds may not have the best options right now, as a recent analysis by moneyfacts.co.uk revealed.
In mid-November, they explained that a number of large banks had cut benefits and interest on a number of their checking account transactions.
On top of that, the Bank of Scotland and Lloyds Bank cut interest income down to 0.5%.
Rachel Springall, finance expert at moneyfacts.co.uk, commented on the few options currently available to consumers and savers: Miss out on a free money transfer benefit.
“Right now, vendors will assess how they can sustain lucrative deals in light of the pandemic.
“With that in mind, we may well see more changes in the months to come and if that does happen, consumers would be wise to check whether their account is still worth keeping.”
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