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

matttye

FireWyrm wrote: »

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.

It is possible to be disciplined with a credit card, however. Building a credit history wouldn't hurt as it will potentially help with the mortgage.

The OP sounds like he has a sensible head on his shoulders as he's avoided credit cards up to this point. So long as he knows how to use them properly (and does so), he won't get into debt trouble with them.

Carlos77

The reward ones are good, providing your disciplined, and pay off monthly, I estimate ill be making around £200 in cash back on my Santander 123 card in a year based on my fuel and grocery shopping. I class this as free money as i use it rather than my debit card for everything other than getting cash out of ATM's and things that charge a surcharge for credit cards, and it gets paid off in full by direct debit each month.

grumbler

Carlos77 wrote: »

...I estimate ill be making around £200 in cash back on my Santander 123 card in a year based on my fuel and grocery shopping.

Petrol cashback is limited to £108 p.a. that leaves £92 for groceries 1%. Do you really spend £770:eek: p.m. in supermarkets?

Carlos77

Forgot to mention the department stores, were doing a lot of decorating and home refurnishing, so will get the extra 2% back on BHS, Debenhams etc. thats what bumps it up to the £200, food shopping is £400pm ish, and our combined petrol bill is over the £300 mark.

300*3% = £9pm
400*1% = £4pm

so food and groceries alone are £156 - the £24 fee = £132

With just the living room, the oh has already racked up over £2000 this year in department stores, so well on target for the £200 in a year. Even without this, the £132 is still well worth having for free!!

[Deleted User]

FireWyrm wrote: »

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.

Don't agree. There is no 'trap'. Credit cards are simply a tool and if used wisely can be of significant benefit. If used unwisely they can get you into plenty of debt but nobody is holding a gun to your head at the chip and pin machine...

System

If the OP can manage the card it is a tool, if not can be a problem.

I started with a Student Barclaycard with £500 limit with free mobile have been fine since. A friend got the same deal and she had problems and no longer has any type of credit card - only an online Lloyds Visa debit card and that suits her fine.

Horses for courses.

Lazyloki wrote: »

Don't agree. There is no 'trap'. Credit cards are simply a tool and if used wisely can be of significant benefit. If used unwisely they can get you into plenty of debt but nobody is holding a gun to your head at the chip and pin machine...

Bazofts_Revenge

I used to despise credit cards but I got an interest free deal with Comet using Kingfisher groups Credit card 'Time Card' I think it was called. So if you want to buy a big ticket item get a store card with a similar deal but make sure you can afford to pay it on time before any interest is due.

jamesml

I'd suggest you start your own thread Bazofts.

To the OP:


I've just turned 24. I got my first credit card from my own bank at 18 (I was going to say 17, as that was when I got my first job, but I must have been 18 when I got the actual card I guess). They will know a lot about how you maintain your account in the past, which they may base their decision on - although this could be good or bad for you?


Don't have any experience of how likely you are to get accepted on a rewards card as a first card - I have a BMI airmiles reward card but I already had my banks own card as well as another card when I got the BMI card, sorry!

iAMaLONDONER

jamesml wrote: »

I'd suggest you start your own thread Bazofts.

To the OP:


I've just turned 24. I got my first credit card from my own bank at 18 (I was going to say 17, as that was when I got my first job, but I must have been 18 when I got the actual card I guess). They will know a lot about how you maintain your account in the past, which they may base their decision on - although this could be good or bad for you?


Don't have any experience of how likely you are to get accepted on a rewards card as a first card - I have a BMI airmiles reward card but I already had my banks own card as well as another card when I got the BMI card, sorry!

I'm 18 and I have 2 ( though I might have a 3rd depending on their decision)

how many cards have you had in the last 6 years?

Moneyextra-Matt

Some really useful feedback here.

Ideally i'd like a cash back credit card, but other than roughly £150 spent on petrol a month, I only really buy the odd item of clothing on my debit card at present.

I think i'm just going to set one up with my bank (Halifax) for the time being as I have all my savings in with them, and would probably find it far easier to get a mortgage with them if i'm sensible with a credit card over the next couple of years.

I appreciate everyone's input on this issue, and it's helped me map out my plan for the next 6-12 months.
Hopefully it'll help others in my position too.

Best wishes to you all.