First Credit Card

craigf87

Hello, first post here so apologies if it's incorrect in any way...

I'm 23 years old, self-employed (freelance sound engineering) earning a small but steady income, and have only ever had a basic savings account with HSBC. I'm currently still in the fortunate position of living at home, which means I have very few money worries at the moment. I have a phone contract which gets paid in full, every month, without fail. That's it. I have no other credits.

I woudld imagine I have a reasonably good credit rating at the moment, I get letters offering me Credit Cards through HSBC all the time through the post... I would therefore like to try and get a credit card so I could build up some credit whilst I can afford to use the credit card worry free.

The only problem I could forsee with my applications is with me being self employed.

I'm wondering which card I should go for? I will be paying it off in full each month, ideally treating the payments as debit payments.

Naturally, I'm kind of worried about getting a credit card as I've managed to go for so long with out. Is it a good idea?

Regards,

Craig

paulmcerlean

You should try your bank first. Always. They have all the history on you and how you run an account - getting a card with your bank will stop you having to go to a sub prime lender first to build up some card history.

safc118

paulmcerlean wrote: »

You should try your bank first. Always. They have all the history on you and how you run an account - getting a card with your bank will stop you having to go to a sub prime lender first to build up some card history.

I couldnt agree more your bank is probably your best bet as paul said they have the most history.

Failing that the other cards that come to mind are the Vanquis cards

If youve got a phone contract and its in your name this will class as credit histroy if you look to get a full bank account in the future that will also give you a boost but other non financial related things like are you on the electoral roll they also help too

In terms of is a card right for you? thats a question that only you can answer. I personally have a card to build credit history so when i go for a mortgage or if i need a loan in the future im in a good position to do so however if your tempted by spending just because you have a credit card then i wouldn't recommend it. If you do get one initally just use it for regular things like petrol etc... not non requirables like new jeans etc...:money:

craigf87

safc118 wrote: »

In terms of is a card right for you? thats a question that only you can answer. I personally have a card to build credit history so when i go for a mortgage or if i need a loan in the future im in a good position to do so however if your tempted by spending just because you have a credit card then i wouldn't recommend it. If you do get one initally just use it for regular things like petrol etc... not non requirables like new jeans etc...:money:

Thanks for the quick responses.

That's pretty much what I would use it for, all the things stated above. My dad is notoriously tight-fisted, through neccessity, and as such a lot of his frugal natures have rubbed off on me. Therefore there's no way I'd be using the credit card unneccessarily. There may even be period of not using it at all, provided my balance is paid, would these periods go against me or would it be counted as good credit?

I am on the electoral roll, have been since I was 18 (and will be voting May 6th!).

Thanks,

Craig

safc118

craigf87 wrote: »

Thanks for the quick responses.

That's pretty much what I would use it for, all the things stated above. My dad is notoriously tight-fisted, through neccessity, and as such a lot of his frugal natures have rubbed off on me. Therefore there's no way I'd be using the credit card unneccessarily. There may even be period of not using it at all, provided my balance is paid, would these periods go against me or would it be counted as good credit?

I am on the electoral roll, have been since I was 18 (and will be voting May 6th!).

Thanks,

Craig

Every time you hit your minimum payment you will receive a green 0 on your credit file if you dont use your card for one month you will still get a green 0 these green 0's are what make good credit history as if you have a limit of £1000 and you dont use it this is seen as good as you haven't been tempted to spend it if you couldn't afford it etc...

as long as you pay off in full every month you spend this will give you good credit. And being on the electoral roll will help you greatly.

If i were you id say first port of call would be try and get one with your bank , failing that id try with the sub prime lenders have a look at this thread http://forums.moneysavingexpert.com/showthread.html?t=2096485

that thread shows you the most popular sub prime cards on the market atm:money:

craigf87

Thanks for your responses people!

Craig