I've never had a credit card and I am interested in building my credit rating to take out a loan in future to put toward buying a house.
So of the existing credit cards what is a good value/ safe bet or has excellent perks?
What's a Good Credit Card to Begin Building Your Credit Rating?
LSympleService on 12/08/2015 - 17:34
Comments
That's what I've read too. CC is just ONE of many things they check, as according to this site you usually have a credit file.
https://www.veda.com.au/yourcreditandidentity/tips-mythbuste…A common definition of a credit file is: ‘a record of your credit history’. You’re likely to have a credit file if you have applied for any of the following:
credit cards loans, such as a personal or business loan a mortgage a mobile phone or internet plan interest-free store loans store cards utility accounts with payment terms of at least seven days.
Dont now which idiot negged you, but im pretty sure this is correct too…. ccs may o on your credit file, but they may not be a good thing.
Regardless of the CC or the bank you get it from, I would imagine a history of showing spending and clearing the debt at the end of the month cycle will be sufficient.
Be aware that when you apply for a mortgage, the lender will ask if you have any credit cards. If you do, they see the limit you have on that card as a debt - even if its balance is $0.
My tip is, before you apply for the mortgage either reduce the limit on the card to a small amount (i.e <$3000) or cancel cards if you have a few of them.
Oh - and what @scrimshaw said above also.
I'd avoid a credit card and instead just build a savings account with the particular bank you plan on getting a loan through in order to establish a relationship with the bank. Even if you go for a loan with another bank they will view your savings history more favourably than a credit card history I believe.
Well my savings is pretty stellar to be honest, but I still have the impression that ill need a credit rating
If you have a long history with them it shouldn't really be a hassle. They are more concerned with you having spare cash - enough to cover loan repayments. Credit cards as mentioned earlier the limit is viewed as a liability.
I'm only speaking from personal experience.
I'm not aware that CCs help towards home loans in this country. That seems to be a meme from the US. When my application was evaluated, they looked at my income, expenses and debt, including amount owing on CCs.