New Credit Card User

master811

Ok looking to get my first credit card. I'm interested in getting one of the Tesco cards with its 1yr 0% deal, and to just pay it all off at the end. However seeing as this is my first card, not sure if that is the best option and instead get a decent rewards card and pay it off every month?

Or would I be better off getting a card with one of my existing banks (Natwest and Nationwide who I have been with for 6-7 years each).

I have no other debt apart from a Student Overdraft (£500) which is only there as it's still interest free til next summer.

What's my best option?

R34GTT

If this is your first credit card and you have no other previous credit accounts you may find you get declined. Cards offering these 0% deals are aimed at those with longer (and good) credit histories.

If you decide to apply and subsequently do get declined but wish to try for one of these cards in 6-12 months time you should apply for a 'credit builder' card - usually with a much higher rate >29%. Pay off the balance in full each month to build up a good credit history and avoid paying expensive interest charges.

Edited to add - to stand the best chance of acceptance make sure you are on the electoral roll. Also your bank will have a detailed history of your account so you may have a better chance of acceptance if you are in good stead with your bank, still a 0% rate may be unachievable.

Stuckon100forever

The Tesco card is also my ultimate card that I'm aiming for in the long-term. :beer:

At the moment I have poor credit so I'm stuck with a £100 Capital One card limit with 34.9% APR. Hoping in 3 years time to have one of the Tesco Bank bad boys :j

master811

R34GTT wrote: »

If you decide to apply and subsequently do get declined but wish to try for one of these cards in 6-12 months time you should apply for a 'credit builder' card - usually with a much higher rate >29%. Pay off the balance in full each month to build up a good credit history and avoid paying expensive interest charges.

These 'Credit Builder' cards, are they specifically for this, or just ones with high rates? Does this mean that the higher the rate the better (as long as I paid it off every month of course)?

Sharon87

I think if you go with your bank for a credit card you are more likely to get accepted, and if they have 0% deals, even better. Worked with me, applied for my first credit with Halifax, who I bank with and got a 0% deal.

MFWannabe

master811 wrote: »

Ok looking to get my first credit card. I'm interested in getting one of the Tesco cards with its 1yr 0% deal, and to just pay it all off at the end. However seeing as this is my first card, not sure if that is the best option and instead get a decent rewards card and pay it off every month?

Or would I be better off getting a card with one of my existing banks (Natwest and Nationwide who I have been with for 6-7 years each).

I have no other debt apart from a Student Overdraft (£500) which is only there as it's still interest free til next summer.

What's my best option?

Your best option is to try your own bank first. This is your first card and as others have said you won't get a card from any of the mainstream providers; but your bank have all your history that they can check

If your bank won't let you have a card then your next option is to apply for a credit builder card; but please make sure you pay it off in full every month

Hope this helps

R34GTT

master811 wrote: »

These 'Credit Builder' cards, are they specifically for this, or just ones with high rates? Does this mean that the higher the rate the better (as long as I paid it off every month of course)?

A higher rate does not make it better, it is just an indication that the card is probably aimed at building credit as these types of card have less stringent acceptance criteria.

If I was in your situation I would check to see if my bank had a card with a good introductory interest rate and apply with them or a 0% deal.

If declined then try one of the credit builder cards with the lowest rate:
Barclaycard Inital 29.9%
Capital One Progress 34.9%
Vanquis 39.9%

Just make sure to pay off the full amount each month so as not to pay the extortionate amounts of interest these cards would accrue.

After 6-12 months you could try again applying for a card with a better rate.