Hello!
I’ve owned a credit card for the past few months and I’ve been paying for my fuel on it and paying it back every month.
I’m looking to buy a new phone and my bank (NatWest) offers instalment plans where I can pay back the balance over the course of a year and only pay about £50 worth of interest at the end. Is this something that’s worth doing? And would it affect my credit score by doing this?
The reason for this is because I’m not eligible for a phone plan- I recently bought a house and I only recently got the credit card, so I don’t look good on paper. It doesn’t help my credit score recently took a hit by 50 points because I forgot to use my credit card for two months 🥲.
Advice on using a credit card?
byu/Bitterrabbiiit inCreditCards
Posted by Bitterrabbiiit
1 Comment
Might take a hit due to higher utilization, but generally credit score doesn’t really matter here in the UK, creditors tend to base lending off other factors such as affordability, utilization, credit exposure, etc.
Assuming you won’t be applying for new credit any time soon (sounds like you wouldn’t be), using what you already have access to is a non issue.