First credit card to build up my rating?

Rich33

I want to buy a house in 2 years time after I graduate from Uni. I don't really need a credit card but I know you need them to help build up a credit rating and prove you can manage debt responsibly.

Is there any cards on the market that I can have that If I pay of it all every month or the minimum balance then I don't get charged? AT ALL. My plan is to do all my regular spending on the card and then save what I would be spending in my savings account and use that to pay of the balance each month?

Sorry If this is all very basic.

unimaginative_user_name

As you are a student your best bet is probably your own bank as they know how you manage your student account.

If not there are cards that have high APR and low limits that are easier to get but beware of making too many applications too close together as credit check searches show up on your credit files and too many look like desperation. There are cards with 0% interest for several months but your chances of getting one of these as a student are zero!

Be careful though in your use of credit cards. It is easy to run up debts which you can't pay off and any defaults, late payments and so on could end up on your credit file for six years making it very difficult to get a mortgage.

CLAPTON

virtually all credit cards charge no interest or fees if you pay in full and on time, each and every month and make no cash withdrawals.

your best bet is to try the bank with your student account.

there are 0% credit cards for a promotional period but you are unlikely to get one of these

Rich33

I don't really have a student account...

Well I took out a Co Op overdraft and bunged it all in an ISA and don't ever use that account. But I have an account with Halifax but I only have a debit card "easy cash card" which is designed for under 18's I think lol.

CLAPTON

unwise to have an current a/c with an active overdraft but never use the a/c but that's your choice

ask halifax for a credit card

aimzrabbit

im still not convinced that this getting a credit card story actually does magic things to credit scoring

my yorkshire bank current account of which i have 600 OD unused

my wifes halifax current account od available if needed

our santander 123 current account joint all report to CRAS with zeros each month and we owe nothing on them

friend of mine who is on electoral has 1 current account no loans or credit cards has just got a nat west mortgage in august 2012 no problem

Wee_Bargain_Hunter

CLAPTON wrote: »

unwise to have an current a/c with an active overdraft but never use the a/c but that's your choice

Can I ask why this is the case?

aimzrabbit

Wee_Bargain_Hunter wrote: »

Can I ask why this is the case?

because they will take the overdraft off you with 30 days notice depending on what bank it is

banks dont like dormant accounts and they certainly dont like overdrafts when the salary stops going in or stops being funded in any way

zerog

Wee_Bargain_Hunter wrote: »

Can I ask why this is the case?

Also, it will appear to lenders that you are maxing out your overdraft and thus might be struggling financially.