My first credit card

Amy_L

Afternoon all,

I plan to make a large purchase (~£1500) over the next weeksand want the payment security associated with a credit card. I also plan to travel to the US later this year so will use the card for booking that too.

This would be my first credit card, and am at a total loss when it comes to pros/cons of one over the other.

This card is not something for me to build up debt on, as I always ensure I have cash enough to pay for something. i.e., costs incurred would be paid off pronto (assuming there are no pitfalls with this).

Can anyone advise me on cards in general, and what perks are generally available (air miles, cash back etc.).

TIA!
Amy

Tixy

You say you haven't had a credit card before - have you had other credit products / agreements that you have paid back that demonstrate a good credit history on your credit reports?

If its your first card then depending on whether you do have any other credit history it may be a case of what card you are able to be accepted for, rather than what cards are the best on the market.

You say you want to make the purchase next week - that could be pushing it timewise to apply, be accepted and get the card and pin in the post to be able to make your purchase.

Is the purchase you wish to make something you will be doing in person or over the internet?

analyst_2

Further to that, since you are saying you are planning to go to USA soon(ish) you might wish to choose one of Martin's cheap travel money cards but read around the subject first as it can save you a bit of holiday cash.

grumbler

Amy_L wrote: »

I plan to make a large purchase (~£1500) over the next weeksand want the payment security associated with a credit card. I also plan to travel to the US later this year so will use the card for booking that too.

This would be my first credit card, and am at a total loss when it comes to pros/cons of one over the other.

Cons: extra charges for paying by a CC are common for travel agents and airlines.
If you want using a CC for extra protection you don't have to pay a full price by it: Section 75 refunds

This card is not something for me to build up debt on, as I always ensure I have cash enough to pay for something. i.e., costs incurred would be paid off pronto (assuming there are no pitfalls with this).

Can anyone advise me on cards in general, and what perks are generally available (air miles, cash back etc.).

• Cashback Credit Cards
• Spending 0% Cards
• Airline Credit Cards
• Credit Card Rewards
• Cheap Travel Credit Cards

AndyT678

Hi

I just took out a Capital One card which gives 5% cashback for the first 90 days. That would get you £75 on your £1,500 purchase. There are several others with similar deals but this is a Mastercard rather than AMEX so is widely accepted too. It took about 2 weeks from application to actually getting the card though.

If it's your first card you may have trouble getting accepted. There is a tool on the site that can give an indication of whether that's likely. I'd put a link in but I'm not allowed!

Good luck and make sure you pay off whatever card you use in full each month.

izools

Yes the Capital One card that pays 5% cashback is VERY strict on acceptance.

I'd find it incredibly hard to see them accepting someone without a long and perfect credit history with other cards.

See what this comes back with:

https://creditcards.moneysavingexpert.com/

Amy_L

You say you haven't had a credit card before - have you had other credit products / agreements that you have paid back that demonstrate a good credit history on your credit reports?

Hmmm, good Q. I don't think so. Having said that, i did get a Warehouse storecard a few months ago with no issue at all.

You say you want to make the purchase next week - that could be pushing it timewise to apply, be accepted and get the card and pin in the post to be able to make your purchase.

Sorry, not next week, but the coming weeks. I understand that this could take a month or so (and i thought they wanted to encourage spending)!

Is the purchase you wish to make something you will be doing in person or over the internet?

Over the internet in this case, and the same for flights etc for later in the year.

Seems very bizarre that you can't get a good credit rating without getting credit, but you can't get credit without a good credit rating!

Tixy

Amy_L wrote: »

Seems very bizarre that you can't get a good credit rating without getting credit, but you can't get credit without a good credit rating!

Its not that you can't get any credit without a good credit history - its that you can't necessarily get the best deals such as high limits and low rates and cashback incentives at first.

Most people have to get credit for low amounts/low limits and higher costs to start with and then build up a credit history.

Rather than focus on the cashback element etc in your situation you might be better just trying to get a standard card with a sufficient credit limit.

Who do you bank with? they might be a good place to try.

Lovelyjoolz

If you're using a credit card abroad then try and get one that doesn't charge commission on overseas use. Nationwide don't, and I'm sure there are others that don't too.

Beware when buying your flights with the credit card tho - you will most likely be charged a fee for doing so.

Prepaid cards are a good idea too for travelling.

If you're going to the states, take a combination of cash (including lots of singles ($1 bill) for tips) and travellers cheques. Make sure that the travellers cheques are in Dollars not sterling and you can use them just like cash in the majority of places (you'll get your change back in dollar notes).

Amy_L

Tixy wrote: »

Most people have to get credit for low amounts/low limits and higher costs to start with and then build up a credit history.

Rather than focus on the cashback element etc in your situation you might be better just trying to get a standard card with a sufficient credit limit.

Who do you bank with? they might be a good place to try.

Ah i see. I shall be patient on my path to good credit ....

I'm with Lloyds, and will be investigating their offers next! Thanks for all your help for this credit-newbie.

Amy_L

Ok, one more quick Q.

Regarding credit limits, what are my options when the credit limit won't cover a one-off spend of £1500? I'm hoping they will, but that CapitalOne card has a min of £1000 (max of 10,000). Using the MSE check i'm apparently 70% likely to be able to get the card but at what limit?