New credit card advice please!

The_Gidfather

Hi,
I've never had the need to have a credit card before, and have been quite happy in using my debit card. However, given the purchase protection that credit cards give if the order is over £100, I am seriously considering getting one.

The only loan I have at the moment is my student loan, have never missed a payment before on anything, and will set up a direct debit to my bank account so any transactions on the credit card are paid off straight away. So probably not the person the credit card companies are looking for!

Can anyway recommend what features I should look out for in a credit card? I'm wondering that as interest rate won't be an issue for me, whether I should focus on the other benefits that they come with (cashback, etc).

Moggles_2

If this would be your first credit card, you may have a limited credit history. What other credit facilities are held in your name? (Your student loan, btw, is not reported to the credit reference agencies.)

It takes time to build a good credit rating. The bank that holds your main current account may be the best place to start.

Once you've operated this and at least one other credit card for a bit, you'll find it easier to get the cards and credit limits you want.

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

The_Gidfather

I've had a store card with Debenhams (which was run by GE Finance but has since been taken over by someone else) for about 5 or 6 years - I've always paid the bills off within the month so have never incurred charges. I've got 2 current accounts (1 is a left over from my student days and has £1 credit in it), and although I've gone overdrawn on the student one it was easily within the limits and paid off in time. Other than that, I've had car insurance in my name for about 3 or 4 years now (paid all at once), and was registered for a BT landline and electric and gas when I lived in Oxford for a year (all bills paid on time).

Thanks for the advice, according to the free credit score estimator my credit score is excellent so hopefully shouldn't have too many troubles getting one.

McKneff

The_Gidfather wrote: »

I've had a store card with Debenhams (which was run by GE Finance but has since been taken over by someone else) for about 5 or 6 years - I've always paid the bills off within the month so have never incurred charges. I've got 2 current accounts (1 is a left over from my student days and has £1 credit in it), and although I've gone overdrawn on the student one it was easily within the limits and paid off in time. Other than that, I've had car insurance in my name for about 3 or 4 years now (paid all at once), and was registered for a BT landline and electric and gas when I lived in Oxford for a year (all bills paid on time).

Thanks for the advice, according to the free credit score estimator my credit score is excellent so hopefully shouldn't have too many troubles getting one.

Dont count your chickens.

i applied for a Halifax ipoints card recently -

I have two other cards which i use and pay off full balances as and when they are due.

I have no debt whatsoever

i have no mortgage and own a house#

Over £1500 is paid into my Halifax reward account each month

I have a substantial amount in ISAs with the Halifax as does my OH

And the bustards turned me down:eek:

No I couldnt understand it either - so sod 'em. In April my ISA and OH's will be moved.
Still thinking about the reward account.

Moggles_2

The_Gidfather wrote: »

I've had a store card with Debenhams (which was run by GE Finance but has since been taken over by someone else) for about 5 or 6 years. I've always paid the bills off within the month, so have never incurred charges.

Congratulations on a flawless payment history. This will help
:beer:

I've had car insurance in my name for about 3 or 4 years now (paid all at once) and was registered for a BT landline and electric and gas when I lived in Oxford for a year (all bills paid on time).

Unless credit facilities are involved (eg. mobile phone), your payment histories with utilities are not normally reported to the credit reference agencies, provided that you are not in arrears. In other words, utilies neither help nor harm your credit history, if you always pay up on time.
Note: British Gas has begun to report new customer accounts to the CRAs in the last couple of months.

According to the free credit score estimator, my credit score is excellent so hopefully shouldn't have too many troubles getting one.

Credit scores are at best a very rough guide. It's easy to be lulled into a false sense of security by these numbers. Then it comes as a shock, when your application is turned down. (Equally, some forum users are put off applying at all, because of low scores.)

Credit reports, when ordered directly from Experian (or Equifax) are invaluable though. Experian produces guidance notes, which are a good read too