First Credit Card

Smiling_Ducky

Hello all.
I have been advised by my bank that because I make a lot of purchases online it would be a good idea to get a credit card as it offers more protection than a standard Debit card.
I've talked this over with my family and they have agreed it's a good idea for security.
This will be the first time I have applied for a credit card as I have the belief that if I can't afford it, I don't have it.
With that in mind, I will be setting up a direct debit to pay off the full amount when it's due.
I am 28 and work part-time. I have one loan for my car that I am over half way through paying and have never defaulted. I have never been overdrawn on my bank account.
My brother has suggested that I get a credit card that offers cashback rewards.
To be honest I don't have the faintest idea where to start.
Could you nice folk offer any advice?

Thanks

CLAPTON

for a first card you are best to ask your own bank as they know how you manage your current account
you are unlikely to get a cash back card as your first card

and I'm a bit confused by your saying that 'if I can't afford it, I don't have it' as well as 'I have one loan for my car ' but no matter

Smiling_Ducky

Hi Clapton
Thanks for your reply.
What I mean by "if I can't afford it, I don't have it" I mean, I don't go out and spend money that I can't afford to spend. If I see something I want I will check I have the money and it won't leave me short rather than buying it and worrying about it later.
If I can't afford it straight away, I will save until I can.

I was was advised to have a loan as I don't actually have credit for anything and when the time comes for me to get a mortgage or want to have credit my "credit rating" would be low and it may be difficult to do such things.

Hope this explains a little.

Thanks

CLAPTON

don't get a loan simply to 'improve' your credit rating as it costs interest
but a credit card used wisely (i.e. used regularly but paid in full each month) will improve your credit rating

Smiling_Ducky

Can anyone else offer any advice?

Thanks

knightfox

You need a credit card, end of story.

Shopping online. Use a credit card, Anything goes wrong they deal.

Shopping high street. Need to pay a deposit on something CC it. When things go wrong they deal.

Holiday. Pay by credit card. When they go bust before the holiday. CC companies deal with it.

There is a protection on cards. Other people will explain.

Dont be frightened use the CC as a debit card and there is no difference.

onlypaddy

knightfox wrote: »

You need a credit card, end of story.

Shopping online. Use a credit card, Anything goes wrong they deal.

Shopping high street. Need to pay a deposit on something CC it. When things go wrong they deal.

Holiday. Pay by credit card. When they go bust before the holiday. CC companies deal with it.

There is a protection on cards. Other people will explain.

Dont be frightened use the CC as a debit card and there is no difference.

What he means is that you have protection under Section 75 of the Consumer Credit Act.

This means that anything with a value over £100 that you pay with a CC for, you can hold the credit card company liable for a full refund if the retailer does not pay or has gone bust. It doesn't matter how much you pay either - you can pay £10 of a deposit for a £10000 car on the card and you will still be covered for the full £10000 (this is an extreme example of course!)

knightfox

onlypaddy wrote: »

What he means is that you have protection under Section 75 of the Consumer Credit Act.

This means that anything with a value over £100 that you pay with a CC for, you can hold the credit card company liable for a full refund if the retailer does not pay or has gone bust. It doesn't matter how much you pay either - you can pay £10 of a deposit for a £10000 car on the card and you will still be covered for the full £10000 (this is an extreme example of course!)

Yes thanks

I was on the phone with someone at the same time. I was not really up to multi tasking.