Going to apply for a Credit Card

derrybhoy

Hi everyone,

At the minute I have a Switch card which up until now has been enough for me. But recently when buying online I've been asked for a credit card rather than a debit card when Im buying concert tickets etc.

Thing is, I havnt got the first clue about what one to go for. All very confusing!

Someone told me the MINT card was the best but Im not sure.

I have no debts or anything so I wouldnt be transfering any balance of stuff like that. I will mainly be using it for Internet shopping and the odd transaction when Im short of cash.

Cheers

magentadreamer

If you've never had a credit card before you might find you run into difficulty actually getting one! I know it sounds stupid but it appears to be the case.So you might find the best bet is to apply for one your bank does as you have a history with them.

You could apply by https://www.quidco.co.uk -as you'd get an incentive to apply using them.

Since you've not got a balance to transfer you might want to look at a card that perhaps gives you cashback or a card that has a 0% deal on purchases where you could pop the money spend into a savings account then pay it back thereby creating your own cashback -this will only work if you pay it back before the 0% period is up.

briona

Hi Derrybhoy

Welcome to MSE! Magentadreamer has given you some good advice there regarding applying for a credit card from your bank or trying for a cashback card.

To further elaborate on the cashback situation, I have recently applied for an Egg Money Card [different from the Egg Credit Card] – the decision for this is instant. The benefits of this card are that it can be pre-loaded like a debit card or can be used as a normal credit card. Cashback is paid at 1% on all purchases, but if you pre-load the card, you can get 4% Gross on all positive balances. I got an APR of 6.9%, and although this can vary, I think their highest APR is around 14.9%, making it better than many other rival cards.

Hope this helps.

Briona

grumbler

derrybhoy wrote:

At the minute I have a Switch card which up until now has been enough for me. But recently when buying online I've been asked for a credit card rather than a debit card when Im buying concert tickets etc

I think you don't understand this correctly. In fact you were not able to pay by your switch card. I guess options avalable were at least Visa, Maestro and Mastercard. Only Mastercard is a pure credit card. Maestro is a debit card, Visa can be either debit or a credit card. Both HSBC and Natwest that issue Switch cards, isssue Maestro cards too. You can try upgrading your current account to a one with a Maestro card.

derrybhoy

grumbler wrote:

I think you don't understand this correctly. In fact you were not able to pay by your switch card. I guess options avalable were at least Visa, Maestro and Mastercard. Only Mastercard is a pure credit card. Maestro is a debit card, Visa can be either debit or a credit card. Both HSBC and Natwest that issue Switch cards, isssue Maestro cards too. You can try upgrading your current account to a one with a Maestro card.

You're right - I dont understand!!!

I have a Maestro card.

penrhyn

Maestro is the new name for Switch, if you intend to pay the balance of your Credit card every month why don't you just get the one your bank offers?
Mastercard and Visa credit cards can be used almost anywhere although if you want to order world cup tickets I think you have to use Mastercard.
Footie fans will correct me.

derrybhoy

penrhyn wrote:

Maestro is the new name for Switch, if you intend to pay the balance of your Credit card every month why don't you just get the one your bank offers?
Mastercard and Visa credit cards can be used almost anywhere although if you want to order world cup tickets I think you have to use Mastercard.
Footie fans will correct me.

Yeah, I do intend on paying the balance at the end of the month. Im only getting this for transactions that cannot be paid by Switch. So you reckon my banks credit card would be the best option?

P.S Whats 14.5% apr? Numbers like this scare me!!! haha

grumbler

derrybhoy wrote:

P.S Whats 14.5% apr? Numbers like this scare me!!! haha

This means that if you don't pay the balance in full every month (or use your card to withdraw cash) interest will be £14.50 p.a. on every £100 of the balance.

If you use a CC only for purchases and pay the balance in full and on time every month, majority of CCs don't charge any interest.

Frank1in

Hi,
I m in the same boat - I have a HSBC switch card but no credit card - but I am currently transferring my account to Lloyds TSB - therefore I ll have no history with them.

Would it be best to ask them for a credit card as well? Or should I go for a seperate cash back credit card? I ll probably just buy big things on it, such as washing machine etc for the protection credit cards offer so I thought cashback might be better. But after re reading Martin's article I don't think I would spend enough each year to benefit so maybe a reward card would be better. (aah!!!)

I had a HSBC visa card a few years ago but I cancelled it when I got into some trouble and I'd paid all the debt off.
Apart from my mortgage I am debt free, I know Martin recommends stoozing, but I m just not there yet! That might be a goal for next year!!

Any help would, be much appreciated

(you might have to start charging me soon Grumbler!)

Bokken_2

Frank1in wrote:

Hi,
I ll probably just buy big things on it, such as washing machine etc for the protection credit cards offer so )

Why not try a 0% credit card for purchases.
That way when you buy your washing machine you pay for it using the card but then have nine months to pay for it saving at least £50 in direct debit charges that places like comet charge.
set up a direct debit from you account to the credit card so that it is paid off in full before the 9th month and you won't pay a penny in interest.

grumbler

Frank1in wrote:

I ll probably just buy big things on it, such as washing machine etc for the protection credit cards offer so I thought cashback might be better. ...(you might have to start charging me soon Grumbler!)

IMO for 'big things' it is better to use a CC that offers free 1-year extended warranty in addition to usual protection. This is more than 1% cashback. The card I use is Nationwide Classic. However Nationwide are very 'choosy' and, I think, it is better to try applying for this card later, when you have some credit history with other card(s).

P.S. For a cashback try Egg Money. To have better chances with application use 'back door': rejected for egg money