Credit Card for newbie

guitarman001

Hello all,

OK so there are plenty of guides on this and I've given them a once over, but I want to hear your take on things, please (if not stop reading now ).

I'll be going to the States next year and I've been advised to get a credit card as my Lloyds Debit card may not cut the mustard. Never had a credit card before, really would rather not have one, but I can see how they come in handy. I don't have any idea what my credit rating is - non-existent, likely...

I don't care about £5 off here or piddly returns (I see there's a card that gets you up to £9 ff fuel a month, but with £27 charge a year - I don't want piddly tie-ins like that which may somehow end up costing me money somewhere down the line). I need an easy to use card that I can use in America. A freebie would be good but not essential. Any companies that are favoured (yeah right lol) or despised? I assume you have to use the card regularly or it gets cut off?

Replies appreciated!!!

chattychappy

If you've not had credit before, it can be difficult to get a CC.

My suggestion is you try to get one through your bank. Assuming you're successful (if not try one of the so-called sub-prime cards), put all your normal shopping through. Pay if off each month in full. That will build your rating a little.

I assume the US trip is a holiday/short period - ie not for months or to work?

Depending on when you're going to the US, hopefully just before you go (say a month) you can get one of the cards that doesn't load foreign transactions. When you go then you'll have the new card with your old card as a backup. If the US trip is at the front of next year, there might not be a sufficient track record to get another card.

Yes, if you don't use them for long enough then can withdraw them. It varies, but a year or so is typical. In my case they've always written to me and given me the chance to say I still want it.

guitarman001

Yes, it's just a trip to Florida in May, though if I'm lucky I will get another trip there for business at some point.

Now that I recall, I did have some sort of HMV credit card (!?) years ago, but never used.

Thanks for your advice

Ben8282

As you have a Lloyds/TSB debit card it would probably be a good idea to apply to Lloyds/TSB for a credit card in the first instance and see what happens. If the answer is no, the I imagine you will have to apply for one of the sub-prime cards.

What do you intend to use the card for when you are in Florida that you can't use your existing debit card for? If it's for car rental, paying hotel bills etc you will have to make sure you get a card with a sufficient credit limit. I agree that anybody travelling should always carry multiple cards just in case though.

izools

A Lloyds TSB Debit card / credit card / sub prime card will be an expensive way of paying for things in the USA.

You really want to look at loading a Pre-paid card for this that doesn't charge such awful loading rates / exchange rates

Ben8282

izools wrote: »

A Lloyds TSB Debit card / credit card / sub prime card will be an expensive way of paying for things in the USA.

You really want to look at loading a Pre-paid card for this that doesn't charge such awful loading rates / exchange rates

Since when have Lloyds TSB debit cards/credit cards charged 'awful loading rates'?

Tixy

Ben8282 wrote: »

Since when have Lloyds TSB debit cards/credit cards charged 'awful loading rates'?

Well the debit card appears on Martin's do not use list -
http://www.moneysavingexpert.com/travel/cheap-travel-money

Lloyds Debit Card
Spending penalty: £1. Load fee: 2.99%. Cash withdrawal: 1.5% min £2 max £4.50


and has one of the largest loading fees compared to other cards http://www.moneysavingexpert.com/travel/overseas-card-charges

The credit card, also on that link is mid range, certainly some worse but also some better ones.

Ben8282

Tixy wrote: »

Well the debit card appears on Martin's do not use list -
http://www.moneysavingexpert.com/travel/cheap-travel-money

Lloyds Debit Card
Spending penalty: £1. Load fee: 2.99%. Cash withdrawal: 1.5% min £2 max £4.50


and has one of the largest loading fees compared to other cards http://www.moneysavingexpert.com/travel/overseas-card-charges

The credit card, also on that link is mid range, certainly some worse but also some better ones.

Oh, I see what you mean. You call the exchange rate mark-up a load fee. Didn't know that .. thought a load fee was what you paid when you loaded a pre-paid card.

Personally, when I have used a credit or debit card abroad I have never worried too much about this point. The exchange rate is usually satisfactory; not necessarily the very best but satisfactory. Yes, I suppose if you want to take cash with you and spend your time going from bank to bank looking for lowest rate/lowest commission you may save a few pounds, but is it really worth it.

The prime considerations should be:
1. You take a card that actually works in foriegn ATM's.
2. You take a card that does not get 'security blocked' every time you try to use it abroad meaning you have to call them ... the cost of the call will instantly take away any other savings.
3. Take a non -08XX phone number with you in case you have to call. Some foriegn networks do not recognise 08XX numbers.

The load fees are all pretty much the same though, except for those few 0 cards that a person who has never had a credit card before is most unlikely to qualify for.


We should give the OP a chance to reply and say what he intends to use the card for. That way better advice can be given. Remember the OP wants a card which will 'cut the mustard', not some sort of pre-pay card.

Tixy

Ben8282 wrote: »

The load fees are all pretty much the same though, except for those few 0 cards that a person who has never had a credit card before is most unlikely to qualify for.

Hence the original advice from chattychappy to try to get a lloyds card or subprime card now and then use for 6months or so to build up a credit history and then hope to get one of the zero load cards just before they went.

chattychappy

Yep, that's what I meant. Wasn't clear from the OP's OP (!) if there would be enough time to build up enough history. Now we know it's 8 months away - it could be long enough...

guitarman001

Crikey, all this is giving me a sore head.

Ideally I wouldn't need a credit card at all, but I guess it's a good idea in general if you're ever in a tricky situation and desperately need cash that isn't in your current account. Plus I've no idea if my debit card will suffice over in the States (I need to check with Lloyds).