Told to acquire a Visa/Mastercard

mickra7851

Hello all,
I am currently in a position were I work abroad alot and have been advised to aquire a Visa and a Mastercard as a survival tool if I am stranded in a country and need to book a hotel or a flight etc. Been a Yorkshireman and my father always telling me to save for something and pay cash, I am a little unsure about the varying cards and their offers . I am looking for some advice I bank with Halifax but no to show no loyalty. I will mainly be using it for emergencys but I have also been advised to purchase an item with the card and pay it off by DD and this will increase my credit rating. (Is this correct? Please advise!) I have just left the Army after 23yrs have no debt and with all the moving around and no current Visa card I have been turned down for goods at Comet etc. Is this because of lack of debt lol I have a mortgage started in 2006. Please advise.
Thanks
Mick

stephane_2

You are probably getting decline due to lack of credit history, moving about. The first place you should try is your bank as they might not do a credit check. Otherwise you have some cards like Capital One, Vanquis, Barclays Initial. The interest rate are high but if you want to improve your credit file, then spend little every month on a CC then pay off the balance monthly

mickra7851

Thanks Stephanie,
I will see what Halifax do. I was hoping to get one with some freebies as I dont need it buy anything or use it as a norm more emergency and the credit improvement. I am assuming the online insurance and insurance for buying things is standard. I have never gone overdrawn in my bank and hold approx 9 accounts. Way too many I know but there should be no probs. Are there different types of Mastercard ?? I am also assuming Visa and Mastercard are the same I have a Visa/debit card for one account already but was advised to get a Visa and a Mastercard to cover all bases.

Cheers

Mick

Moggles_2

mickra7851 wrote: »

I will see what Halifax do. I was hoping to get one with some freebies as I don't need it buy anything or use it as a norm more emergency and the credit improvement. I am assuming the online insurance and insurance for buying things is standard. I have never gone overdrawn in my bank and hold approx 9 accounts. Way too many I know but there should be no probs.

The Hally's doing 0% on purchases for 12 months at the mo.
Minimum monthly payment just 1% of the balance.
Note for anyone else reading: only available to current account customers.

http://www.halifax.co.uk/bankaccounts/Extras.asp

This happens to be Mastercard, btw.

jamesd

Visa and Mastercard are competing credit card schemes. That's why having one of each is useful: it there's a glitch with on it's not likely to affect the other. You'd also want each card to be with a different bank so that a problem with the systems of one bank couldn't leave you stuck.

Visa debit processes payments through the Visa credit card system, even though it's not a credit card. Not suitable as an emergency card, though, because you can't get out more money than in the bank account.

Ideally you'd get one of each, put one regular bill on each and have a direct debit set up to pay off each bill every month. Mobile phones are likely to accept credit card payments. Some councils will, though probably without being able to do it automatically every month. What this gives you is a gradually accumulating record of getting and repaying credit, with on time payments (be sure they are on time!) every month to make you look like a safe risk.

mickra7851

thanks all for the advice.
Mick

mickra7851

Guys,

As i mentioned I am not going to be needing the card to buy things on a regular basis or to move debt so what is the best card with freebies. I.E. free insurance on purchases. I have also heared some offer free house insurance I am assuming these are only Gisitz and wont be forever but as I am not in a desperate need I would like to know if there are any like that??? Am I been greedy or unrealistic as its my first card? Sory to ask so many questions as I am away at mo I can do research on cards you mention.

Thanks

Mick

mickra7851

Sorry mad cow is affecting my memory. I am particularly taken with the Natwest Black card.

Mick

housebuyer_abc

mickra7851 wrote: »

Sorry mad cow is affecting my memory. I am particularly taken with the Natwest Black card.

Mick

If it is for an emergency card then you want a card without gimmicks unless you really will need them. Go for no fee and low interest rates since you'll be relying on the company to pay back your expenses before you can pay the card.

Secondly - did your company advise you to get a card? Or was it just a friendly co-worker? I ask because companies aren't allowed to suggest you get a card - it's seen as harrassment i.e. you can't really do this job if you can't get credit. If a credit card is truly a necessity for the job then the company has to provide it.

jamesd

The NatWest Black card has a typical APR of 51.8% APR based on the required assumption of £1500 borrowed and the £250 a year fee. Unless you think that you'll use the benefits significantly it's not worth the fee even if you do have the £75,000 a year minimum income required.

mickra7851

thanks again for the answers to Housebuyer its a co-worker as I work in Iraq sometimes flights are delayed or cancelled so it was to be used as an emergency. Jamessd Looking at my annual salary and rotations I will be just shy of the 75K. How strict are Natwest? With the benefits of the lounge access and the 2nd home insurance along with the other elements would outweigh the annual £250 fee. Thanks again for the info