advice for a busy guy

yakimov85

Hi all,

Just joined the forums, btw amasing website too much advice for me to get through (due to work and uni at same time) so i thought i'd get some specific advice.

So abit about myslef:

I am 24 yr old postgrad with and just started my proper full time job
My work is 70 miles away, (700miles return trip pw)
I have a girlfriend who is training to be a teacher and is on very low wage for the next year but she has accomodation, food and utilities paid for by the school, all else I support her (ie holidays, restaurants, ent, etc)
I plan to save up £2k by Oct to get her out of debt and then focus on my own savings.
I have no student loan to pay off (borrowed money from parents, will start paying off in 2 years time)
I live at home with my parents where i pay 150 rent pm, moving septemeber 2011 (closer to work).
My biggest expense is fuel which I buy from tesco or asda.
I buy very little grocerries and dont pay for lunch at work.
I go out once/twice pm which may increase with the new job (ie work friends socials)
I have £500 in overdraft from last year which i will pay off this/next month (btw they started charging me for this 8 months ago although i'm still a student - had a gap year working, can i calim this back)
I spend very little on electricals or general shopping (£100 pm max)
My only requirements for the next 2-3 months are a new lapotp and fixing my run down car (£800 max)
I like going on holidays a few times a year and planning to do a big trip for my 25th (ie £1800 by nov)
I have 1 student credit card (with £500 limit) which I opened last month to get the most out of the student perks, which ended up being useless
I have planned out my average spending for the next 2 years and adjusted for holidays, moving house and worst case scenarios, along with monthly savings.
I am very keen to make payments every month (or at least within the 56days) and put other spending on hold till i repay.

so...

I am looking for 2 CARDS:

1. PETROL CREDIT CARD: I'm fueling up around £90 pw and will pay off this amount every month so i thought i'd use it to get a credit rating.

2. HOLIDAY/ELECTRICALS CARD: To book holidays and laptop, other expenses, which I will pay off within 2 months max

I was considering getting rid of my student card and applying for 2 new cards, tesco card for fuel to get the most out of the clubcard points, and something with low apr and £1500 limit as my second. Is this possible if I don't have a credit rating yet?

What shpould I do :money:?

BugsyBrowne

Your best bet is to try your bank old mate....
You also need to check your credit reports equifax&experian both do free 30day trials,and check these through first....

Any

yakimov85 wrote: »

I was considering getting rid of my student card and applying for 2 new cards, tesco card for fuel to get the most out of the clubcard points, and something with low apr and £1500 limit as my second. Is this possible if I don't have a credit rating yet?

What shpould I do :money:?

Short reply - no.

You are highly unlikely to get high street special offer cards if you have no rating what so ever.

Are you sure you have no rating?? Did you have no official debt before?

First point of call if you have no credit rating would be your own bank. And have a quick read of this http://www.moneysavingexpert.com/loans/credit-rating-credit-score

This is the most basic information to get you speed up with what the deal is.

Tixy

Why is the student card useless? Have you used it all yet? Might be sensible to start using it now for your fuel(repaying in full each month of course). Whilst you won't get the clubcard points it will at least allow you to start building up a rating. Giving you a chance of getting a different card in 6-12months.

Is £500 the current balance on the overdraft? How much is your overdraft limit?

Oh and you've given lots of useful info but haven't actually mentioned your new salary, which will have a big impact on what credit you can get, even once you have a credit history built up.

yakimov85

Tixy wrote: »

Why is the student card useless? Have you used it all yet? Might be sensible to start using it now for your fuel(repaying in full each month of course). Whilst you won't get the clubcard points it will at least allow you to start building up a rating. Giving you a chance of getting a different card in 6-12months.

I have used this card for purchases of electronic goods and clothes last month and decided not to use it for the fuel. the reason I wanted to try out the Tesco cred card is the assumption that they do the special deal for things like double clubcard points when u join, otherwise i'll carry on using my standard clubcard to collect the points.

Is £500 the current balance on the overdraft? How much is your overdraft limit?

limit is 2500, and I have been repaying this over the last 2 years to its current state of 500. So i guess that was my debt in the past and I have still not payed it off, would that count for credit rating?

Oh and you've given lots of useful info but haven't actually mentioned your new salary, which will have a big impact on what credit you can get, even once you have a credit history built up.

24k pa

Are you sure you have no rating?? Did you have no official debt before?

First point of call if you have no credit rating would be your own bank.

My debt was with barcalys, but my new and clean account is with natwest (and so is the student credit card)

---

So my main question is what is the best credit card atm for newbies to credit ratings?

Tixy

For a person with very little credit rating/history its a case of what you can get not what is the best deal. Have you read the article Any linked to above?

So you may not get anything better than your student card. You could possibly ask your new bank whether they will exchange the student card for a normal credit card (if you think that would be worthwhile).

Regarding the overdraft debt with barclays - have you always operated this within its terms? An overdraft will appear on your credit report yes and being constantly in an overaft, never getting it back in to a positive position generally doesn't look good to creditors so can make new credit harder to get.

So aside from your Natwest card you might well be looking at high interest subprime cards http://www.moneysavingexpert.com/cards/bad-credit-credit-cards . You could always try an application for a prime card first but don't keep applying if you get turned down as multiple applications also look bad on your credit file. Personally I wouldn't cancel the student card until you have a different card as you could end up with nothing but a subprime high APR card.

Any

I agree with Tixy,

However going to NatWest and asking them whether they will upgrade you to normal card is not going to cost you anything and they probably will tell you what your chances are without doing a search first... NatWest are surprisingly good at these things.. (if you have a good branch - my village one is absolute rubbish, but where I work the branch is fantastic and they cannot do more for you). So give it a go and smile at them.

BadgerFace_2

I think you should check your credit report, you may have more history than you think; you have a credit card, you have an overdraft, have you ever had a contract mobile phone?

yakimov85

I have been within my limits untill last year when my terms changed because i completed my undergrad. I have also had a credit card for a month which i'm not getting rid of...just hunting fro better deals.

no phone, always PAYG. I will read the details more closely, thanx for the advice

Tixy

If you were over you overdraft limit (because they reduced it) then its quite possible you have a default on your credit file. If you have then you will struggle to get credit.

Worth checking your credit report (only £2 each for the statutory report by post and they arrive within a week, or there is a free online trial -free if you remember to cancel within 30days)