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Credit card questions


Just to start off with my current situation and why i'm getting a credit card:

22 year old graduate here, never had a credit card, however i thought i'd build my credit rating now rather than later. (i am also employed, and currently living at home)

Just a few quick questions:

1.) Which company do i go for?

My current account is with Barclays, which therefore makes it the logical company to go for, however are there any 'outstanding' companies i should be aware of? Currently my only priority is getting my rating up. I'm not too fussed about freebies and deals and air miles.

2.) Why do i want my rating up?

Mortgage. though i havent delved deeper into Mortgages, i've heard the better your credit rating, the easier you can get a mortgage. I'd rather sort my credit rating now than later. Likewise, can someone elaborate on the benefits of getting your rating up NOW? i dont really plan on moving out of my parents' house till i'm earning 'enough'.

3.) How am i paying for it?
As far as i'm aware, the APR is irrelevant as long as im able to pay my credit card on a monthly basis. Which, i'm confident in doing so. I dont spend excessively anyway, and plus- birds of a feather. Why do you think i'm here? i'm here to save money, not spend it. :)

So my question is: Could i then pick a credit card and ignore the APR on it? I'll be able to repay it on a monthly basis anyway through debit.

4.) I've read that you cant get your credit card in 'Credit' so to speak, by that i mean positive credit, im not really sure how they work- but the idea of purchases being insured is quite interesting, can someone elaborate or point me to an article that i could read?

5.) In terms of Barclaycard, apparently you cant turn off the 'contactless' function. As a paranoid civilian, i dont want to make unnecessary purchases just because im 'near' a touchpoint of some sort.

6.) Lastly, any pitfalls and experiences you'd like to share?

Thanks guys, first time here so play nice :)



  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Barclays would be a good place to start, and failing that, try the likes of aqua or Vanquis. As you intend to pay in the full, the APR is irrelevant.

    If you're really paranoid about contactless, then I don't think either Vanquis or aqua yet feature this - although they undoubtedly will in time.

    The purchases being protected point you mentio refers to section 75 - if you use your card to buy something (more than £100 and less than £30k), and the the supplier fails to deliver (ie the TV you buy doesn't turn up or doesn't work and the supplier won't refund), you can claim back the cost from your credit card.
  • Herbalus
    Herbalus Posts: 2,634 Forumite
    First Anniversary Name Dropper First Post
    edited 23 July 2013 at 3:55PM
    Be aware that the customer service record of Aqua and Vanquis is generally considered to be a lot worse than Barclays.

    I'd start with Barclays. You're also more likely to get a decent limit there so if you decide to go abroad for a holiday or buy a macbook you will have enough room.

    I ignore the APR on my cards, so you can do that without a problem. I have 34.9% with Aqua, and House of Fraser keep hiking the APR on that. Doesn't bother me in the slightest because I pay in full.

    About putting a card in credit: this normally means you have more money on your card than your limit, so your card actually owes you money, not you owing them. This is generally against the T+Cs of cards and they can block the card for doing it, though it can occasionally happen for a good reason, like if you get a refund to your card after you've paid the card for the purchase. Putting your card in credit has nothing to do with insurance.

    Last point as you're new to cards: never withdraw cash on a credit card because they will charge you.
  • sinful07
    sinful07 Posts: 31 Forumite
    Thanks guys, some solid advice. I've heard about withdrawing using your credit card too, i assume the charges vary, but i'd imagine it'd still be hefty.

    As i've mentioned earlier- i'm new to credit cards overall, how do i go about 'paying it back' ? simply transferring the outstanding payment to my credit card...?

    Many thanks again
  • Herbalus
    Herbalus Posts: 2,634 Forumite
    First Anniversary Name Dropper First Post
    sinful07 wrote: »
    As i've mentioned earlier- i'm new to credit cards overall, how do i go about 'paying it back' ? simply transferring the outstanding payment to my credit card...?

    Easiest way is to set up a direct debit for full payment when you activate the card - then the money will simply go from your bank account to the card on the due date and you don't have to worry about it. (Obviously you need the money in your bank but that goes without saying.)

    If you elect not to do this, you can pay via debit card, phone, online banking, in branch etc, but you have to remember.
  • sinful07
    sinful07 Posts: 31 Forumite
    Thanks buddy, duly noted. :)
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