First credit card

KierNet

Evening MSE'ers!

I'm looking at getting my first credit card for a one off payment (bike license). I would normally save up, but the rules are changing in January, and I would have to wait until I'm 24 to get my full license.

My plan is, get a credit card with a limit of £1k, pay for it, and then pay it back at a minium of £100 a month (it should only cost around £700, but just incase).

Trouble is, I have no idea about credit cards.

Tesco do a 0% for 16 months (plus clubcard points!).

I'm sure its explained on here somewhere, but using my phone, so searching/posting is a bit of a pain, but what does APR mean? Or is that only after the 16 months are up?

Also, am I likely to get one? I work full time, been working for the same place for 5+ years, and take home around £1,000 a month. Last time I looked (couple of months ago) I had an excellent credit rating. No current debts, a £50 overdraft (which isn't used). Only downside is my age (23) maybe?

Cheers for any help.

BugsyBrowne

For starters getting an excellent credit rating from a company like Experian who don't lend money is meaningless especially as you don't have any credit history whatsoever so forget the excellent rating because you haven't got one.

At the moment you are very high risk so your best bet would be your own bank.

KierNet

BugsyBrowne wrote: »

For starters getting an excellent credit rating from a company like Experian who don't lend money is meaningless especially as you don't have any credit history whatsoever so forget the excellent rating because you haven't got one.

At the moment you are very high risk so your best bet would be your own bank.

I've had overdrafts in the past (£550 total), and also have a contact phone which I believe effects credit ratings?

BugsyBrowne

KierNet wrote: »

I've had overdrafts in the past (£550 total), and also have a contact phone which I believe effects credit ratings?

Managing an overdraft or a mobile phone is not managing a credit card that's why they have credit building credit cards like cap1 classic or Vanquis etc.

Forget about tesco and ask your back

KierNet

BugsyBrowne wrote: »

Managing an overdraft or a mobile phone is not managing a credit card that's why they have credit building credit cards like cap1 classic or Vanquis etc.

Forget about tesco and ask your back

Is that ask them for a CC, or ask them for a loan? Not too keen on a loan, as you have to pay it back XYZ a month? With a CC if for whatever reason I can't afford to pay back, it doesn't matter.

Could someone explain the APR thing to me please? Simple as possible .

opinions4u

KierNet wrote: »

With a CC if for whatever reason I can't afford to pay back, it doesn't matter.

You do have to make a minimum payment each month.

Could someone explain the APR thing to me please? Simple as possible .

The higher the APR the higher the cost to you.

Sagz_2

KierNet wrote: »

Is that ask them for a CC, or ask them for a loan? Not too keen on a loan, as you have to pay it back XYZ a month? With a CC if for whatever reason I can't afford to pay back, it doesn't matter.

Could someone explain the APR thing to me please? Simple as possible .

That made me wince! Dangerous way to see credit cards and a slippery slope - been there, done that!

Have you read this: http://www.moneysavingexpert.com/loans/Interest-free-short-term-loans
It may help you make up your mind.

KierNet

opinions4u wrote: »

You do have to make a minimum payment each month.

The higher the APR the higher the cost to you.

Thanks . Didn't know that about CC!

Sagz wrote: »

That made me wince! Dangerous way to see credit cards and a slippery slope - been there, done that!

Have you read this: http://www.moneysavingexpert.com/loans/Interest-free-short-term-loans
It may help you make up your mind.

Cheers.

Appears that the CC is the best way at the moment. Will give a couple of places a ring tomorrow.

Tesco min payment is £25 according to that link (or 1% of the debt).

BugsyBrowne

Forget about Tesco they are for people with long standing credit histories who've managed credit cards and give 0% deals like any mainstream lender to people who've built up their credit ratings.

KierNet

BugsyBrowne wrote: »

Forget about Tesco they are for people with long standing credit histories who've managed credit cards and give 0% deals like any mainstream lender to people who've built up their credit ratings.

This is what I love about MSE.

Been approved for a Tesco credit card with the 0% deal. Despite everyone in here saying I wouldn't .

£2,000 limit (told I can reduce it once my card is here, which I will be doing). 0% for 16 months.

Will get some paperwork in around a week that I need to sign and send back, then get my card a week after.

sistafromanothermista

:beer: Well done :T

It does show that the only way to really find out is to apply........