1st Credit Card (Advice Needed)

stutwentyfour

Looking to get a credit card for the first time. Not really going to be spending alot on it, and will be paying it off in full each month. Could anyone recommend the best deal for me and my partner, or because we wont be using it much, doesn't this really matter?

jonnyb

If you really will pay it off in full each month then the APR is irrelevant.
There are lots of threads dealing with the options, but things I would look out for are :

no annual fee,
maybe a cashback card, though if spend is going to be low then cashback is not very important,
free extras offered by some cards.

good luck.

Warriorsith

I wouldn't bother getting a CC once you start using it will be the start of you getting more and more in to DEBT, if your going to be paying it off each month in full then I don't understand why do you need it?

If you can avoid any CC like the plague!!!

Searcher2

If you are going to pay your credit card off each month in full then I recommend the Egg Money card as you receive 1% cashback on everything

http://new.egg.com/visitor/0,,3_79731--View_1654,00.html

If you are disciplined then you may find you are better off paying for as much as you can with the card to gain more cashback. There are also some websites which you get extra cashback from. Wouldn't touch Morgan Stanley with a barge pole from (bad) experience.

EDIT : With reference to Warriorsith - I disagree - if you can handle money a cashback credit card is great. Just set up a direct debit to pay it off in full from your current account so you can't miss a payment. Q. What is the difference between a credit card and a debit card? A. Free money in the form of cashback PLUS the extra interest the money is in your current account for the time between spending the money and paying off the CC (e.g. have high interest current account)

GlennTheBaker

Warriorsith wrote:

I wouldn't bother getting a CC once you start using it will be the start of you getting more and more in to DEBT, if your going to be paying it off each month in full then I don't understand why do you need it?

If you can avoid any CC like the plague!!!

Firstly, paying by credit card gives certain protection against companies going bust after they've taken your money and such like. You don't get this with cash, cheque or debit cards. Secondly, by using a card which offers cashback, you can actually make a few quid out of it too. Thirdly, by paying for everything on a credit card, your money sits in your bank account for longer and earns you a bit of interest. A credit card is only dangerous if you mis-use it - be sensible and you'll be fine.

Rafter

Would back Searcher2 on the Egg money recommendation.

All online, you can set up an automatic payment for the full amount and it is more widely accepted than American Express.

Good luck.

R.

sicker

I too would recommend Egg Money. If you have a good idea of your monthly out-goings I would suggest you transfer this amount to Egg Money early in the month where it will be making 4% interest as you gradually use this positive balance to pay for your daily needs, each card payment gaining 1% money back. DON'T GET INTO A NEGATIVE POSITION, thats where money problems start.

John

Rafter

sicker is right if you are nervous about credit cards and your ability to monitor your spend and be able to repay in full next month.

However, by doing this you will lose the benefit of the 'interest free period' on a credit card as your purchases will offset your positive balance as you make them. If you put the money in a savings account instead you could earn 4% plus for a whole month and pay your egg money purchases off the following month without paying any interest on them.

R.

Linda32

GlennTheBaker wrote:

Firstly, paying by credit card gives certain protection against companies going bust after they've taken your money and such like. You don't get this with cash, cheque or debit cards. Secondly, by using a card which offers cashback, you can actually make a few quid out of it too. Thirdly, by paying for everything on a credit card, your money sits in your bank account for longer and earns you a bit of interest. A credit card is only dangerous if you mis-use it - be sensible and you'll be fine.

This is why we have a credit card and Egg Money is excellent.