What's the best first credit card?

DragonQ

I've never had a credit card in my life but at some point in 3-4 years or so I'm gonna want to get a mortgage and I'm thinking that getting some sort of credit history is a good idea.

So, what's the best credit card to go for if you've never had one before? One that offers cashback would be great but the ones on the MSE main page are all either unavailable (too high minimum income) or pointless (I barely spend anything on fuel so the Santander 123 card is bad for me). I'm guessing one that has an easy application process would be best, and these probably don't have many benefits in terms of cashback etc.

My income is £16k but it's tax-free (student stipend) so that equates to about £20k gross. I'd be paying the credit card debt back as soon as I get billed so the charged interest rate isn't an issue.

InsideInsurance

For a first card you may be best going for an easy option rather than top end card in which case the first port of call could be your bank given you have a known history with them.

DragonQ

I see. I guess that would be the Lloyds TSB Platinum Card (their student credit card apparently doesn't apply to postgraduates). Does this card have any warning signs attached to it?

I've also seen a couple of sites mention the Barclaycard Initial card, which seems to have more benefits than the Lloyds one and is aimed at those new to credit. Anything bad about this one (other than the obvious 29.9% APR)?

MoneySaverLog

DragonQ wrote: »

I've also seen a couple of sites mention the Barclaycard Initial card, which seems to have more benefits than the Lloyds one and is aimed at those new to credit. Anything bad about this one (other than the obvious 29.9% APR)?

What benefits do Barclays offer over Lloyds in terms of their credit cards?

DragonQ

Reward Money and Contactless Payments, according to their website.

rising_from_the_ashes

Contactless payments isn't a benefit IMHO.

Hardly any retailers have it (here anyway) and the maximum spend is £15.

I asked for it to be removed from my card (it apparently it can't be) as I don't particularly like the idea that if my card did get stolen, it could be used for multiple small transactions.

exel1966

DragonQ wrote: »

I've never had a credit card in my life but at some point in 3-4 years or so I'm gonna want to get a mortgage and I'm thinking that getting some sort of credit history is a good idea.

So, what's the best credit card to go for if you've never had one before? One that offers cashback would be great but the ones on the MSE main page are all either unavailable (too high minimum income) or pointless (I barely spend anything on fuel so the Santander 123 card is bad for me). I'm guessing one that has an easy application process would be best, and these probably don't have many benefits in terms of cashback etc.

My income is £16k but it's tax-free (student stipend) so that equates to about £20k gross. I'd be paying the credit card debt back as soon as I get billed so the charged interest rate isn't an issue.

In your position the best card you can get is ANY card you can get as you won't be considered as a good risk. Do you/have you ever had any credit related product ?

Providing you are a good/reasonable customer your first port of call should always be your own bank as you already have a 'financial relationship'. After all if you wanted to borrow a tenner who would you ask ? A stranger or someone that knows you ?

If your bank refuses then your best options are to go sub-prime and try to obtain a 'starter' card from a provider such as Vanquis, Capital One or Barclays.

DragonQ

exel1966 wrote: »

Do you/have you ever had any credit related product ?

Don't think so, unless student loans or interest-free overdrafts count.

creditcardrays

Finding the best credit card online is actually similar to finding a credit card personally. An online best credit card search is more convenient than any other searches.Your spending habits define your credit card needs. Although the credit cards are meant for spending, the question is how much? The criterion is the magnitude of spending that comes into play while choosing a best credit card. The credit card must match your spending habits.

izools

As others have stated, your lack of history leaves you as a high risk in the eyes of any creditor as there's nothing on your credit file to show lenders how you've handled credit in the past.

This means you'll have to start your credit building off with an easy-to-get card.

Try for a LTSB Platinum first of all (don't feel bad if they say no) and if they turn you down I recommend the Capital One Progress.

They state on their criteria that you should "have had credit before" for the Progress card but this isn't a hard and fast rule - I know of a lot people that have obtained this card as their first without problem.

Good luck! :beer:

DragonQ

Thanks for the advice again guys. I applied for a Lloyds TSB Platinum Mastercard a couple of days ago and although I've had no actual response yet, it's appeared in my Lloyds TSB online banking page with a credit limit of £2750 so I guess I've been approved.

Once the card arrives I'll use it as often as I can, except for cash withdrawals of course.