My first credit card

benjy25

Hi everyone,

(I apologise for the length of the post I want you guys to have as much info as possible about me to help advise me)

This is my first post so go easy on me, no laughing

I am 22 years of age and looking to apply for my first credit card.
Several friends and family have recommended MoneySavingExpert saying that the community is both knowledgable and friendly.
I've been doing quite a lot of research over the past two weeks as I understand the importance of a decision like this.

I completely understand that a credit card isn't 'free money' and initially I will be using it for my weekly purchases such as fuel, oyster card top-up and food shopping.
Due to this I have been searching for credit cards with rewards/cash back as I will be paying the full amount via direct debit making the interest rates irrelevant.

The main cards that interest me are the tescos credit cards, as I regularly shop there and like the idea of building up clubcard points to exchange for vouchers! However I am sceptical of my chances at being accepted as I have NO credit history/rating. I have read that if I'm declined, it will affect my credit and therefore damage my chances of getting a credit card elsewhere.

The other option would be something like the Barclays initial card, which seems to be more suitable for someone in my position. Although the main problem is that there are no rewards with a card like this.

Options:
Would it be worth while applying for the Tescos card and seeing what happens?
Apply for the barclays card?
Or is there a completely different card that both suits my want for rewards / cash back and is aimed at applicants with no credit history?

Some other info about me:
I live at home with my parents and earn 24k before tax. I have never had a credit card or contract of any sort and I have a student loan which I will begin repaying next year.

Hopefully someone can shed some light on this situation and if not thanks for spending the time to read this.

:money:

Ben

guesswho2000

benjy25 wrote: »

Hi everyone,

(I apologise for the length of the post I want you guys to have as much info as possible about me to help advise me)

This is my first post so go easy on me, no laughing

I am 22 years of age and looking to apply for my first credit card.
Several friends and family have recommended MoneySavingExpert saying that the community is both knowledgable and friendly.
I've been doing quite a lot of research over the past two weeks as I understand the importance of a decision like this.

I completely understand that a credit card isn't 'free money' and initially I will be using it for my weekly purchases such as fuel, oyster card top-up and food shopping.
Due to this I have been searching for credit cards with rewards/cash back as I will be paying the full amount via direct debit making the interest rates irrelevant.

The main cards that interest me are the tescos credit cards, as I regularly shop there and like the idea of building up clubcard points to exchange for vouchers! However I am sceptical of my chances at being accepted as I have NO credit history/rating. I have read that if I'm declined, it will affect my credit and therefore damage my chances of getting a credit card elsewhere.

The other option would be something like the Barclays initial card, which seems to be more suitable for someone in my position. Although the main problem is that there are no rewards with a card like this.

Options:
Would it be worth while applying for the Tescos card and seeing what happens?
Apply for the barclays card?
Or is there a completely different card that both suits my want for rewards / cash back and is aimed at applicants with no credit history?

Some other info about me:
I live at home with my parents and earn 24k before tax. I have never had a credit card or contract of any sort and I have a student loan which I will begin repaying next year.

Hopefully someone can shed some light on this situation and if not thanks for spending the time to read this.

:money:

Ben

Do you have no history whatsoever (as in no mobile phone contract, current account, etc.) or just no previous credit cards? If it's the former, you may be ok - my OH was accepted for a Tesco CC as her first card.

Other than that, prior to considering sub prime (ish) cards, try your own bank.

Either way, a couple of applications won't do any harm, but many more than this will start hitting your "score", so try not to make too many applications.

moshoodo1

@op, who do you bank with? the first point of call will be your bank as they know your capacity. try your bank first and see what happens

benjy25

guesswho2000 wrote: »

Do you have no history whatsoever (as in no mobile phone contract, current account, etc.) or just no previous credit cards? If it's the former, you may be ok - my OH was accepted for a Tesco CC as her first card.

Other than that, prior to considering sub prime (ish) cards, try your own bank.

Either way, a couple of applications won't do any harm, but many more than this will start hitting your "score", so try not to make too many applications.

Hi guesswho2000,

Thanks for the quick reply,

The only 'credit' related thing I have is a current account which I have had since the age of about 9. (saving for my future from an early age!!)

In light of your reply I may apply for the Tescos card in the morning however for everyone else I'm still not 100% sure.

Thanks
Ben

benjy25

moshoodo1 wrote: »

@op, who do you bank with? the first point of call will be your bank as they know your capacity. try your bank first and see what happens

Hi moshoodo1,
I bank wih HSBC.
On a separate note does anyone have any experience with HSBC credit cards?

Thanks
Ben

FreddieFrugal

Capital One classic extra is a good card as it gives cashback and a £10 yearly bonus if you pay balance off every month on time.

It was my first credit card. One year later I've got an American Express cashback card.

20aday

benjy25 wrote: »

Hi moshoodo1,
I bank wih HSBC.
On a separate note does anyone have any experience with HSBC credit cards?

Thanks
Ben

I would suggest trying your own bank first, seeing as you have lengthy amount of history with them.

On the main MSE website there is a "soft search" tool that'll allow you to see what chance out of ten you have if you went ahead and applied for certain cards.

This will not show up on your credit file so will not affect your credit history.

Of course there is the probability that a full search COULD result in a decline but is that a risk you are willing to take?

Mr_K

You could try the new luma 4% cashback card, so long as you're paying off in full each month. Credit limit won't be high but maybe thats a good thing initially for you.

http://www.luma.co.uk/cashback-credit-card/

benjy25

Thank you IanRi, 20aday and Mr K for your responses.
For a summary so far the cards that are on my current shortlist (but I haven't applied to 'any' yet) in no particular order:

Tesco - low apr
Barclays - any
HSBC - any
Lumina - new 4% cash back one
Capital One - classic extra

Ben

carousels

My first ever credit card was a basic Capital One one. I had no credit history apart from having a current account with a small overdraft.

Sub prime cards such as Capital One, Aqua, Vanquis, ect may still offer you a card even with a limited/non-existent credit history. Just remember to pay them off in full every month as the APR on these can be very, very high.

But like others have suggested above, try your own bank first.

benjy25

After looking at the HSBC website the rewards that they offer don't really suit me (ie. holiday discounts etc.)

I assume it would be sensible to make the assumption that either the Luma or Tescos card would be most suited to me unless anyone thinks differently?

Thanks
Ben