First Credit Card - help required

slocbeats

Hi there,

Apologies first off if it's the done thing to read each thread before posting a new one. I'm limited for time unfortunately so hoping a few people may be able to offer me a quick helping hand.

As the title suggests, i'm trying to go about acquirying my first credit card. I've read various reports on this site already; tips and reccomendations from Martin Lewis, guides on cashback, do's and don'ts etc, but am still confused and a little unsure about what type of card I should actually apply for.

Financially i'm not in too bad a position. I'm 27, solvent (though do use my overdraft each month), never had a bank loan, have had a number of direct debits in my name, and don't spend what I can't afford. I bank online and keeps tabs on what goes out of my account each month.

I am however completely stumped on what card would suit me best. Should I apply for Amex and reap the rewards of their cashback offers? Do I play safe with a low interest card, something nice and stable that won't screw me over should I miss a payment? Or do I go for something inbetween? Is there a card for people like me - first timers with no proven credit rating (as far as plastic goes anyway)?

Any suggestions here would be greatly appreciated!

Cheers

Rose123

If you've never had any credit before then id suggest reasearching and reading about Aqua/Vanquis/Capital One/Barlcaycard Initial as you best bet.

Check they're suited for you then apply!
These type of cards are suited for people with low credit or no credit

x

digitalphase

slocbeats wrote: »

Should I apply for Amex and reap the rewards of their cashback offers? Do I play safe with a low interest card, something nice and stable that won't screw me over should I miss a payment?

AMEX are one of the hardest credit cards to get, you need a proven excellent record of credit history. As you haven't had a credit account before - besides your overdraft - it is unlikely you will get the AMEX.

As Rose suggested, try one of the sub prime cards to build up your credit rating. Use it for a small purchase each month for 6-12mths and repay in full each month, then try and apply for a more mainstream card.

Cashback cards are again reserved for people with excellent credit history. At the moment you are an unknown entity, as lenders won't have a good idea of how you conduct your finances.

Hope this helps!

slocbeats

Thank you both, amazing how much sense each of your posts made. The penny has finally dropped

I'll let you know what I decide upon.

Rose123

good luck in whatever you decide

x

cash-magnet

slocbeats wrote: »

...I've read various reports on this site already; tips and reccomendations from Martin Lewis, guides on cashback, do's and don'ts etc...
... Do I play safe with a low interest card, something nice and stable that won't screw me over should I miss a payment...

Reading that last part caused alarm bells to start sounding very loud. Do not start your life of using a credit card with the attitude that missing a payment is EVER a good thing to be considered. Just thought I should highlite that point as it seems to have been passed over so far in the replies you have had.

Good luck with building up your credit worthiness and hope you find something suitable.

slocbeats

cash-magnet wrote: »

Do not start your life of using a credit card with the attitude that missing a payment is EVER a good thing to be considered

Don't worry, i'm more than aware that engaging in this sort of thing doesn't reap very good rewards! Thanks for reiterating though.

minimike2

I wouldnt advise applying for a Vanquis / Barclaycard initial etc - just because you havent had a card before doesnt mean you will automatically have to get one of these sub prime credit cards. My very first card came from NatWest and they gave me a £8k limit when I had never had credit before at the age of 19. Granted this was a long time ago, but your bank knows your financial habbit and will likely already have a pre-assessment for a card type and limit for you.

As above an AMEX is almost certainly out of the question, but I dont see why your bank wouldnt give you a standard card, or even a larger card issuer like RBS, Capital One etc might be fine offering you a standard card.

Dont start off by applying for an inferior product - See if you can get a standard card first.

slocbeats

Hmmm. So you're advising almost the opposite Mike.

The 'excellent credit rating?' hyperlink next to each of the cards below suggests i'd only be eligible for a card offering 34.9% APR anyway (i.e. sub prime). So presumably it's best to adopt the 'I can but try' mentality here?

EDIT: I can't post the url to capital one's credit card page as i'm a new user!

Also, I see from a few responses in the sub prime threads, that some people have better luck applying over the phone than they do online. What's best practise in your experience guys?

Innocent_Guy

Hi Slocbeats,

Please use the search facility and search for " The Credit Ladder " by Never-in-Doubt that should help:D

PNPSUKNET

Capital one is a good card to start with, good customer service and good starter limits.