A First Credit Card - Please Help

JC1987

Hello all. I am 21 years of age and i require a credit card with a limit of around £600. I could comfortably pay off this money in a matter of months and just really need the money now to pay off some money i owe out.

I currently do not have any credit cards and only have one bank account. I have a £1250 Overdraft on this account and i admit to having gone over it a few times due to poor money management in the past.

I have read up on cards via this site however i still don't know entirely what to go for/the likelihood of me being approved for a card. I'd also like to know how long it normally takes for a card to come through/access to the money?

Like i said i'm quite in the dark here so excuse the stupid questions. I just need some pointing in the correct direction.

Thanks, J

Moggles_2

Not a good idea, IMO.

If you withdraw cash from credit cards, their systems automatically apply a cash advance fee and you're charged cash withdrawal rates from day one.

This a very expensive way to borrow money :eek:

JC1987

Moggles wrote: »

Not a good idea, IMO.

If you withdraw cash from credit cards, their systems automatically apply a cash advance fee and you're charged cash withdrawal rates from day one.

This a very expensive way to borrow money :eek:

Thank you for the advice. The problem i have is that i desperately need the money and i do not know of other avenues for getting it. I'd just be moving the cash into my bank account but i presume this makes no difference at all? Do you have any advice on a more sensible method of borrowing money? I really don't know what else to do.

debtdestroyer007

have u tried ur bank.......apply for card with them..... most banks wud be easier bet.
check ur credit file too......

if thats clean, i wud def apply for barclaycard platinum

JC1987

debtdestroyer007 wrote: »

have u tried ur bank.......apply for card with them..... most banks wud be easier bet.
check ur credit file too......

if thats clean, i wud def apply for barclaycard platinum

What would the best way of checking my credit file be?

I'm going to need to go and speak to my bank tomorrow. Basically the problem has arose in that i spent money i didn't have online as my bank somehow let transactions go through despite me reaching the end of my overdraft. I totally misjudged my finances like an idiot and now i owe them about £350. Therefore im not sure theyd give me a credit card just to pay off that?

thriftymomma

experian offer a free trial if you haven't had one before. Just cancel it before your thirty days are up.

JC1987

thriftymomma wrote: »

experian offer a free trial if you haven't had one before. Just cancel it before your thirty days are up.

I just signed upto this and my Credit Report seems to say that everything i have done/have been involved with Credit wise is completely satisfactory. Just need to figure out the best way of sorting out this mess now.

Thank you everyone for the help and advice so far, i was really worried about this earlier but i am now seeing the light a little.

Moggles_2

JC1987 wrote: »

I just signed up to this and my credit report seems to say that everything I have done/have been involved with credit wise is completely satisfactory. Just need to figure out the best way of sorting out this mess now. Thank you everyone for the help and advice so far. I was really worried about this earlier, but I am now seeing the light a little.

Sorry, this doesn't change anything. If you were to withdraw £600 cash from your first credit card - assuming you were accepted - you would be paying crippling interest rates :eek:

I really think you have to swallow your pride and borrow some money from family. Your credit rating is precious and, once shot, it takes years to rebuild.

oceanscape

JC1987 wrote: »

Thank you for the advice. The problem i have is that i desperately need the money and i do not know of other avenues for getting it. I'd just be moving the cash into my bank account but i presume this makes no difference at all? Do you have any advice on a more sensible method of borrowing money? I really don't know what else to do.

In that case, consider applying for one of the cards which allow "Super Balance Transfers" (i.e. transfers into your current account). They'll transfer the money to your bank account for a fee (usually about 3%) and then charge you the balance transfer interest rate (often 0% for the first few months, so no problems at all if you're aiming to pay it back quickly). Examples include the Virgin card, Virgin Atlantic AMEX, and probably others as well. You'll need a fairly good credit history to get approved, however.

Good luck!

lewpster

I think a personal loan would be a better option - that way you could clear off your overdraft and make a more manageable loan payment each month to reduce this. Maybe even arrange a meeting with someone at your local branch of your bank to see what they advise is the best plan of action.

Definitely don't take cash out on a credit card. You will be paying 27.9%ish apr and this is an expensive way of borrowing, even just in the short term x

Moggles_2

oceanscape wrote: »

Consider applying for one of the cards which allow "Super Balance Transfers" (i.e. transfers into your current account). They'll transfer the money to your bank account for a fee (usually about 3%) and then charge you the balance transfer interest rate (often 0% for the first few months, so no problems at all if you're aiming to pay it back quickly). Examples include the Virgin card, Virgin Atlantic AMEX, and probably others as well. You'll need a fairly good credit history to get approved, however.

This is not an option at the mo, TBH.

Lenders launch these promotions, which are sometimes heavily advertised, to draw in new customers. Often they are flooded with applications and can afford to cherry-pick applicants. They are all going to see the OP as too great a risk. This will not affect them permanently, but it takes time to build a credit history.

JC1987, for tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve