My First Credit Card

suchuwato

I know you've all probably seen a ton of similar threads, but looking through all the different options is giving me a headache, and I need some help.

I'm 22, and the only debt I have is a student loan. All I have is a current account (on which I've never used the overdraft) and that's it. I closed my savings account before I started university.

I'd like to get a credit card to start building my rating... I'd prefer to use it as little as possible, the whole prospect of credit scares the hell out of me, but I know it's a necessary evil.

Ideally I'd like the simplest card that makes sense for someone in my position. I don't want a million different short-term offers of 0% on this and 0.0001% on that, because I won't be utilizing it!

However, if you can suggest one that has decent perks that don't require meeting conditions then I'd be interested.

Thanks in advance

Odette

Have you looked at Martins guides? A cashback card might be right for you.

When I was in your position (I still kinda am, just two years older) I got the longest 0% apr card I could get, this way I can do all my big spending (things i can afford! but probably would have to save up a few months for) i.e if I get a 12 month 0% apr card (I have one of these now from tescos) I can buy my car insurance tomorrow at £700 and pay £100 a month for seven months to my credit card that DOESNT charge me, rather than paying £800 to the insurer with their 2.7% apr or whatever.

Hope that makes sense.

flyingscotno1

Odette wrote: »

Have you looked at Martins guides? A cashback card might be right for you.

When I was in your position (I still kinda am, just two years older) I got the longest 0% apr card I could get, this way I can do all my big spending (things i can afford! but probably would have to save up a few months for) i.e if I get a 12 month 0% apr card (I have one of these now from tescos) I can buy my car insurance tomorrow at £700 and pay £100 a month for seven months to my credit card that DOESNT charge me, rather than paying £800 to the insurer with their 2.7% apr or whatever.

Hope that makes sense.

It sounds like a cashback card might well be good, but the rates are, in general, appalling at the moment with a number of the products getting removed. If he is more like your second bit then 0% might interest him.

Word of warning- being a student with little credit history might count against him getting the good cards, due to no employment history, dealings with cc etc- they worry that they'll go out running up bills. Often people have more luck speaking to their bank who usually offer them something.

Any

flyingscotno1 wrote: »

Word of warning- being a student with little credit history might count against him getting the good cards, due to no employment history, dealings with cc etc- they worry that they'll go out running up bills. Often people have more luck speaking to their bank who usually offer them something.

Completely agree.
I think there are very little chances of getting a first credit card from main stream lenders unless from their own bank - and then it still depends on the movements on their current account (ie prove he/she knows how to manage money)

Good to read this to have some idea about credit ratings..
http://www.moneysavingexpert.com/loans/credit-rating-credit-score

The thing is that if the OP applies for too many cards in short period that screws up his credit score in a big way for the next 3-6 mths at least.

choc_mouse

If you've got a student/graduate current account, I'm pretty the same bank will also offer a student/graduate credit card. Might not be the best deal or have the best perks but you'll probably be accepted on it as they can see how you manage your current account. You might be on an average salary now (or none at all if you're still a student!) but the banks like to give students/graduates a good impression and hope you will be their customer for life - where hopefully you're earning loads when you're in your 30's, 40's etc.

I remember the first credit card I got was from Natwest - I was given the option to apply for a credit card when I opened my student account. I got a £500 credit limit which is nothing compared to what I have now, but it got my credit record going and helped me understand the world of credit

Mr.Mulla

I would have to agree with choc_mouse. I think it would be best for you to start with the same bank where you have your current student loan. Since your only goal is to increase your credit score, might as well start with a small credit limit. That way, you won't be tempted to spend way too much of what you earn.

Just a piece of advice, since this is your first time getting a credit card and you want to build up your credit score, I would suggest for you to pay in full or maybe half of what you purchase and not by small installment payments. Most people make mistakes by doing this and in the end they didn't realize that they are already drowning in debt because the interest rates are higher than what they are actually paying. So just be mindful of that.

Having a credit card is also a big responsibility.

matttcattt

I don't want to hi-jack this thread, but it looks like the original question has been answered, and my question is very similar.

I am in a similar positon to the original poster - I am currently at university with a Natwest student account, but I already have the student credit card that Natwest offer.

I currently use my student credit card regularly, and pay off most but not the whole balance each month, as suggested in the "Credit Rating" guide.

I am wondering if it would be a good idea to try to get another credit card to improve my credit rating for the future? In particular I was looking at the Capital One Progress card suggested in the "'Bad Credit' Credit Cards" guide.

flyingscotno1

matttcattt wrote: »

I don't want to hi-jack this thread, but it looks like the original question has been answered, and my question is very similar.

I am in a similar positon to the original poster - I am currently at university with a Natwest student account, but I already have the student credit card that Natwest offer.

I currently use my student credit card regularly, and pay off most but not the whole balance each month, as suggested in the "Credit Rating" guide.

I am wondering if it would be a good idea to try to get another credit card to improve my credit rating for the future? In particular I was looking at the Capital One Progress card suggested in the "'Bad Credit' Credit Cards" guide.

Only if this changes IMHO and you clear the balance each month should you be looking at 'bad credit' cards.

CannyJock

matttcattt wrote: »

I currently use my student credit card regularly, and pay off most but not the whole balance each month, as suggested in the "Credit Rating" guide.

Where are you seeing a recommendation not to clear your balance in full and avoid unnecessary interest?

sillystudent_2

When I was in your position (I still kinda am, just two years older) I got the longest 0% apr card I could get, this way I can do all my big spending (things i can afford! but probably would have to save up a few months for) i.e if I get a 12 month 0% apr card (I have one of these now from tescos) I can buy my car insurance tomorrow at £700 and pay £100 a month for seven months to my credit card that DOESNT charge me, rather than paying £800 to the insurer with their 2.7% apr or whatever.

What insurer was that, can you give me their details? Lol think you meant 27% apr (sorry I'm not usually a member of the spelling police I'm just sitting here on a sunday afternoon doing a dreadfully boring essay and taking whatever distractions I can get! )

NickX

matttcattt wrote: »

I currently use my student credit card regularly, and pay off most but not the whole balance each month, as suggested in the "Credit Rating" guide.

I'm not sure which guide you are referring to, but this is not good advice.

If you pay the entire balance off every month, you pay no interest whatsoever.

Even if you simply leave 1p balance on the card, you will be charged interest on all transactions from the date of purchase to the date they are paid off, completely negating the benefit of paying in full.

The crucial aim of using Credit Cards to save money is to minimize interest and charges, preferably to zero.