23 years old. In my first job, which credit card should I get?

Moneyextra-Matt

Hello everyone, new to the forum so be nice!

I'm Matt, 23, recent graduate from the North West near Manchester and started my first career focussed job in March.

I watched Martin's show the other week and it got me thinking about my credit rating in years to come.
Up until now, i've always avoided credit cards because I've always had the mentality that I should only spend what I have readily available.

Can anybody recommend the best credit card for someone of my age?
I'm sensible with my money so I will have all my plans set out for repaying the credit spent, I could just do with a steer in the right direction with a sensible option?

Any other like minded individuals got any tips?

rb10

Lots of credit cards give rewards/cashback for your spending, so it's worth trying for one of them first. However, if you have a limited credit history, they might be harder to get, so I'd suggest firstly trying just one application for a 'better' cashback/rewards card. If you're rejected, then apply for any card with your bank.

You can then try again for a cashback/rewards card in 6-12 months time, by which time you'll have some more history on your credit file.

A list of suggested cards is below - you'll have to work out which gives you the best value.

• Tesco Clubcard credit card - for Tesco clubcard vouchers
• M&S credit card - for M&S vouchers
• Nationwide Select credit card - you get 0.5% of your total spend value back (you'll need to already have, or switch to, a Nationwide current account - but as they have one paying 5% interest this may be a good thing for you to do anyway)
• Amazon card - 1% in Amazon vouchers

There are a few more, that you'll be able to find on the credit card pages of this site.

bengalknights

If your just starting off then something like BC initial/Capital one should be easy to get to build up history and then allow you to get the more restrictive ones like those mentioned by rb10

grumbler

If you have never had a CC yet, then you are likely to get rejected for any CC with rewards.
The best shot for the first ever CC is either a card from the bank you have your current account with or one of Bad-credit Credit Cards

glider3560

grumbler wrote: »

If you have never had a CC yet, then you are likely to get rejected for any CC with rewards.

My first credit card was Halifax Clarity Reward, which I applied for whilst a student.

The limit was initially offered as £1000 with a 21.9% APR. I have recently increased this limit considerably, after giving them details of my employment.

anoncol

grumbler wrote: »

If you have never had a CC yet, then you are likely to get rejected for any CC with rewards.
The best shot for the first ever CC is either a card from the bank you have your current account with or one of Bad-credit Credit Cards

I've never had a credit card till last month and its a santander 123 CC.

rb10

glider3560 wrote: »

grumbler wrote: »

If you have never had a CC yet, then you are likely to get rejected for any CC with rewards.

My first credit card was Halifax Clarity Reward, which I applied for whilst a student.

There is a common misconception on these forums that you're unlikely to be accepted for a rewards card as your first card. Like you, plenty of people do get one.

A credit file with little history on it is very different to having a poor history.

[Deleted User]

Go with your bank first of all as they will have internal records rather than simply basing their decision on what credit reference agencies hold on you (I'm guessing not a lot).

If your bank gives you a card you can use this for 6 month - a year and then be in a position to apply for something more tailored to what you want to get out of it (cash back, airmiles, hotel points or whatever). This will effectively allow you to leapfrog over the whole sub-prime vanquish, aqua, capital one !!!!-about where you'll get a stupid limit and ridiculous APR.

Assuming that you have a good history with your bank of course!

matttye

Lazyloki wrote: »

Go with your bank first of all as they will have internal records rather than simply basing their decision on what credit reference agencies hold on you (I'm guessing not a lot).

If your bank gives you a card you can use this for 6 month - a year and then be in a position to apply for something more tailored to what you want to get out of it (cash back, airmiles, hotel points or whatever). This will effectively allow you to leapfrog over the whole sub-prime vanquish, aqua, capital one !!!!-about where you'll get a stupid limit and ridiculous APR.

Assuming that you have a good history with your bank of course!

My bank (Lloyds) gave me a £1500 overdraft which I used briefly, but my OD limit has mainly fluctuated between £100 and £500. It now stands at £0. I've been 'up to date' with them for six years - ever since I opened the account - but they turned me down flat for a credit card. 2 defaults (four years old) but I have an impeccable history with my bank and I've demonstrated paying back what I borrow from them in the past. Impeccable credit history since the two defaults too.

Now using them just for my emergency fund and I've switched my main account to Santander.

System

OP - A credit card is always useful for buying off the net, buying large ticket items and for job based expenses.

As its the Reward version - I gather that you banked with Halifax / BOS at the time?
I would always suggest a person's own bank for their first card.

glider3560 wrote: »

My first credit card was Halifax Clarity Reward, which I applied for whilst a student.

FireWyrm

Moneyextra-Matt wrote: »

Can anybody recommend the best credit card for someone of my age?
I'm sensible with my money so I will have all my plans set out for repaying the credit spent, I could just do with a steer in the right direction with a sensible option?

Any other like minded individuals got any tips?

Most of us over at DFW had similar plans. Do without credit if you can manage it. Trust me.

Your best option being young and prudent is to begin a savings account now and save hard for a mortgage deposit. You wont need much of a credit rating if you can put up 50% or more. Anything else, you can continue to save for and buy up front thereby never falling into the same traps as the rest of us.

Take your first months wages and put it into an ISA or other protected savings account - dont touch it until you get your next payday.

Credit score no longer required if you do as I advise above.