Which credit card is the best please?

Disney_Pluto

Me and my other half are looking to get a mortgage so want to build up our credit rating a bit. I already have a Debenhams card which gets paid off in full each month I spend on it. My boyfriend however doesnt have any credit cards and is looking to open one. He will pay off each month and will spend it on things like food shopping, clothes, cds, games etc so it wont be used all the time but generally when we go shopping. Im totally confused as to what card he should get. Can anyone offer any help as to which one he should apply for.

I will also add hes never been in debt and his phone bill and insurance gets paid monthly by direct debit. He has an overdraft with his bank HSBC but has never gone into it.

All help is very much appreciated.

Thank you.

Moggles_2

If this would be his first credit card, he has a limited credit history, so from the lender's perspective he's something of an unknown quantity. They are likely to see his lack of a payment history as too great a risk. HSBC, the bank that holds his main current account, may be the place to start. If HSBC should turn him down, the solution is to apply for a starter credit card like Vanquis. This provider specialises in cards for those with next to no credit history.
Please note: interest rates are high, but if he only ever spends what you can afford to pay back each month, he'll never pay interest or fees.
https://www.vanquis.co.uk

Once he's operated a credit card for 12 months, he'll find it easier to get the cards and credit limits he wants

For tips to improve his 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

davetrousers

First port of call should be who you already bank with, as they can see how you manage your money.

TrickyDicky

If he could get one - given he would pay the entire balance off each month the best option would be a cashback card (see cashback CC article). but given he has no credit history he is unlikely to get one.

wizk1

TrickyDicky wrote: »

If he could get one - given he would pay the entire balance off each month the best option would be a cashback card (see cashback CC article). but given he has no credit history he is unlikely to get one.

He has some form of credit history at least. His mobile contract is seen as credit, and if all bills have been paid on time, this will act in his favour. A few years back, I applied for my first credit card from a bank I had no prior business with, and I was accepted (albeit with a rather small credit limit). I probably owe that to my previous mobile contracts, car and laptop finance.

Disney_Pluto

So basically he doesnt have a hope in being accepted for a credit card unless he goes with his bank or the one you guys have suggested.

The phone bill and car insurance gets paid ever month is this not some sort of credit?

Sorry all very new to this.

Moggles_2

caroline_john wrote: »

The phone bill and car insurance gets paid every month. Is this not some sort of credit?

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, utility bills 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 three months. [Obviously, BG needs a customer's permission, so only new account holders are affected.] This could be an advantage to those who are aiming to build a credit history