My first credit card

benjy25

My next decision is Tesco Vs Luma.
Can anyone help me decide?

Ben

sistafromanothermista

For another card Ben or the same one you are talking about in this thread?

benjy25

sistafromanothermista wrote: »

For another card Ben or the same one you are talking about in this thread?

Sorry I should have made that clearer.
I'm still speaking in relation to my first credit card.

My choice is between wither the Luma 4% cashback card (which I think is relatively new)
Or the Tesco low APR card.

The 4% Luma card appeals to me because:
1) I currently have no credit history
2) Cash back!

The Tescos card appeals to me because:
1) I shop at tescos for most things + fuel.
2) You get rewarded with clubcard points.

Thanks
Ben

BugsyBrowne

benjy25 wrote: »

Sorry I should have made that clearer.
I'm still speaking in relation to my first credit card.

My choice is between wither the Luma 4% cashback card (which I think is relatively new)
Or the Tesco low APR card.

The 4% Luma card appeals to me because:
1) I currently have no credit history
2) Cash back!

The Tescos card appeals to me because:
1) I shop at tescos for most things + fuel.
2) You get rewarded with clubcard points.

Thanks
Ben

The Tesco card might appeal to you but your chances of getting accepted for that is near on zero chance.

aleph_0

benjy25 wrote: »

The Tescos card appeals to me because:
1) I shop at tescos for most things + fuel.
2) You get rewarded with clubcard points.

In analysing a reward CC, you need to work out how many points you get per pound, and how much they are worth to you.

The Tesco CC gives 1 extra point per £4 spent everywhere (with a slightly higher rate for tesco fuel). So if you value 1 clubcard point as worth 2p, you are getting 0.5% back. If you value 1 CC point as worth 4p (used for restaurant vouchers, for example), you are getting 1% back.

In contrast, the luma card is worth 4% actual-cashback on fuel+supermarkets. To me, it seems an easy choice.

benjy25

aleph_0 wrote: »

In analysing a reward CC, you need to work out how many points you get per pound, and how much they are worth to you.

The Tesco CC gives 1 extra point per £4 spent everywhere (with a slightly higher rate for tesco fuel). So if you value 1 clubcard point as worth 2p, you are getting 0.5% back. If you value 1 CC point as worth 4p (used for restaurant vouchers, for example), you are getting 1% back.

In contrast, the luma card is worth 4% actual-cashback on fuel+supermarkets. To me, it seems an easy choice.

Well that makes a lot of conclusive sense.
A more generalised question I have, is it a bad idea to start my credit rating with a card aimed specifically at peple with 'poor' credit?
Or does it not matter as long as I make the repayments in full each month?

Thanks
Ben

BugsyBrowne

benjy25 wrote: »

Well that makes a lot of conclusive sense.
A more generalised question I have, is it a bad idea to start my credit rating with a card aimed specifically at peple with 'poor' credit?
Or does it not matter as long as I make the repayments in full each month?

Thanks
Ben

You ain't got much choice unless your bank swing a card your way .

benjy25

BugsyBrowne wrote: »

You ain't got much choice unless your bank swing a card your way .

Thanks for the fast response.

Aside from the fact that I would get the 4% cash back (up to £9 a month) would it be more benefial to my credit if the card was with, HSBC rather than Luma?

Ben

BugsyBrowne

benjy25 wrote: »

Thanks for the fast response.

Aside from the fact that I would get the 4% cash back (up to £9 a month) would it be more benefial to my credit if the card was with, HSBC rather than Luma?

Ben

It don't matter who it's with as other lenders don't see the names of the creditors.

Mr_K

benjy25 wrote: »

A more generalised question I have, is it a bad idea to start my credit rating with a card aimed specifically at peple with 'poor' credit?

I wouldn't let that worry you. I have have credit cards for years (never paid a penny interest, always paid off in full which is the only way to use them). Most of them have limits of several thousand. However I am considering adding the Luma Card to my collection because of the 4% cashback (drawback being its limited to £224 spend a month).

Its a good sign that you are going for a cashback card and aren't worried about interest rates as you'll be paying off each month. Go for it and see if they accept you to begin with. You can always cancel/close it down if you change your mind - just make sure you set up the DD to pay the full amount as soon as you get it.