My first Credit Card

goonerAFC

Im looking to get my first credit card, because not only will it help with my cash flow. But it will get my credit rating up too.

Im not looking for a massive limit, But something good like 0% on purchases as I'll use it more than often. Im already with HSBC PLUS so ill probly get rid of that on getting a credit card. I dont have any outstanding debt. So I suppose I wont be needing a balance transfer or anything as such.

Whats the best card you guys suggest? Or is there somewhere I can look at a list of cards?

I know all you lot are probly thinking I'm stupid for getting one at 19... But I know what Im doing-ish. I looking to get a mortgage in about 2 years time when my business picks up hopefully, so I need my credit rating up up up.

Thanks

LeeSouthEast

In this climate you may well find it difficult to get one. Go with the 'easy' ones first, something like Barclaycard Initial. While the APR's are high, you're more likely to be accepted on it. Once you've had that for a year, chop it in for something considerably better.

goonerAFC

Thanks! Im taking it the APR wont matter much because ill be paying off the card in full each month via direct debit?

LeeSouthEast

The APR is irrelevant if you pay it off in full every month. However, for credit-building purposes, you'd do well to carry a small balance each month. That way you're making them money (albeit a small amount) and will - as I understand it anyway - give you a better rating over time.

mab2000

Try your own bank first. HSBC have got a card available for HSBC customers only, has 0% on purchases for 3 months (and from then on, if you pay in full on-time every month you wont pay interest) and doesnt have a very high interest rate like these credit building cards have. Well worth a try but if not, the credit building credit cards will be fine if you pay it off each month.

goonerAFC

Thanks MAB. Ive always heard its not good to go with you bank for CC? I am with hsbc have been for about 5 years. But it is only 0% for 3months what puts me off.

Katgrit

But if you're planning on paying it off each month why does the 0% lasting only 3 months bother you? Are you sure you understand that the 0% is the initial APR? Like people have said above, for the first few months dont pay it all off, benefiting from the 0% AND getting plus points for looking like you'll make them some money (even if you wont end up doing!), and then pay it off in full each month after you're back on the standard APR.

mab2000

Its only bad to go for a credit card with your bank if you plan to run up a debt with them and you then fall behind with repayments. There is a thing with some banks that if you are falling behind with repayments, they are able to take money from your bank account without your agreement (if you bank with them aswell), so say you had your wages paid in to your account, they are able to take all of that money to pay off that debt if you are falling behind with repayments. As you want to pay off in full every month, this wont be a problem for you.
Yes there are cards out there with better 0% on purchases deals in terms of time length, but, in the current financial climate and your lack of credit history its unlikely you will get one (but not impossible). But after a while of using a credit card you will improve your credit score and be able to apply for better cards. You have been with HSBC for some time, if you have a maestro card and have an overdraft facility on your bank account i would say that you stood a good chance of getting one with HSBC.