Credit Card Virgin!!!

nursiejennie

Hey guys,

My mate told me about this site, and it looks pretty good.

I was considering getting a credit card, to put my credit rating up, and also because i'm going to oz at the end of the year for 3 weeks.

I have no idea about them, where to start, what to go for or anything!!

Knowing my luck, if I just chose a card and started using it, I would be charged a bomb!!

Don't really have much knowledge about them at all, balance transfers etc, goes way over my head.

If anyone has any tips of how to get started, which to choose, and not be charged at all, then please let me know, as it will be greatly appreacted!!

Cheers!!

Jennie

x c",) x

GlennTheBaker

Hi and welcome!

Have a look at Martin's guide to credit cards HERE for the lowdown. As you've mentioned that you're going abroad, the Nationwide Credit Card would be perfect as it doesn't incur any charges for making transactions in foreign currencies. See another of Martin's guides HERE.

lisyloo

If you don't want to get charged then make sure you PAY IT OFF IN FULL each month.
The easiest way to do this is to get the credit card company to set up a direct debit for you (some insist on this anyway).

This will keep you out of debt, no charges and get you a decent credit rating.

nursiejennie

Cool, looks good, but it's only 4.9% for 12 months on balance transfers. But if I have no other credit cards to transfer the money on to, then I shouldn't need to worry about this??

It's also only 0% for 9 months on all purchases, so what should I do after the 9 months??

lisyloo

It's also only 0% for 9 months on all purchases, so what should I do after the 9 months??

Hi jennie,

It would be helpful if you could tell us what it is you are trying to acheive as then people can recommend the best cards

Do you

1) Want a convenient mechanism to pay for things and not carry cash
2) Want to borrow
3) Want to stooze

If you don't pay it off fot 9 months you could find yourself with a hefty bill so if you are going for 1) then I would still recommend paying it off each month so you don't get into debt unless you are very disciplined.

Some people borrow and put it in the bank to gain interest whilst borrowing at 0% but this take discipline.
Sorry if this is stating the obvious but it is NOT free money.
It all has to be paid off.

Sorry if it sounds like I'm going into "lecture" mode but many people get into difficulties through easy credit so caution is needed.

GlennTheBaker

As you have no other credit cards, the 4.9% on balance transfers can be ignored. As to the 0% for 9 months on purchases, this means that any purchases made on the card will incur no interest charges providing you make at least the minimum repayment (as marked on your statement) for a period of 9 months from the account being opened. If you intend to simply make purchases on the card and pay the bill in full and on time every month then you won't be charged any interest anyway.

nursiejennie

Right ok that sounds good.

To be honest I'm not sure what I want.

I would like to get my credit rating up, and credit cards is the best way of doing this. Also I'm looking into buying a house, so they always help.

Obviously i'm going to Australia, and incase I get stuck or something happens over there I would like to have a credit card to get me out of trouble. This also saves carrying cash around with me.

I do intend to pay it off in full each month, as I have not yet even gone over drawn with my normal account or miss any payments.

I am looking into the Nationwide Classic card, and two questions have popped up.

1. Do I want credit card protection plan - £12 a month

2. Payment Protection Insuance - 70p per £100 of monthly outstanding balance, and will be debited to my account.

I'm not 100% sure what this means, and whether I should go for them or not??

lisyloo

It's also only 0% for 9 months on all purchases, so what should I do after the 9 months??

If you are going to pay it off in full each month then you do not need to worry about any interest rate because you won't be paying any interest.

If you pay off your purchases in full each month by the due date then there is no interest.
Allow 4 working days for payment to clear and a few postal days if sending payment by post. The exact number of days depends on the method of payment.
I would avoid the post and use some electronic method (either direct debit or on-line banking),

1. Do I want credit card protection plan - £12 a month

No.
Keep a seperate note of your card number and the number to call if it's stolen.
Pretty much all they do is report your cards stolen which you can do yourself if you only have one.
Obviously take care of it and don't store your PIN number with the card etc.

2. Payment Protection Insuance - 70p per £100 of monthly outstanding balance, and will be debited to my account.

This is to pay your credit card bills if you are sick etc.
Personally I think it's better to insure your income rather than individual bills.
If you are only using it as a convenient method of payment then I don't see why you would need this.

nursiejennie

Ok thanks that's great.

If it's 4.9% on balance transfers, does that mean that I can not put credit onto it (without being charged) and use that instead??

lisyloo

If it's 4.9% on balance transfers, does that mean that I can not put credit onto it (without being charged) and use that instead??

Balance transfers refer to transferring debt not credit.
You can transfer credit and use that if you want however there is a caveat.

If you are in credit and your card gets stolen then you might lose your money.
Most companies cover fraudulent activity however some (including Nationwide) only insure their loses and not yours.
Therefore if your money goes missing through fraud you might lose it.

I think it's safer to run up debt and pay it off each month.
Put your money in a high rate savings account to gain interest.

nursiejennie

Excellent thankyou.

Do you suggest any high rate savings accounts??