Need a Credit Card

EmmaNeedsAdvice

Hi All,

I've been advised by a friend that I should get a credit card to improve my credit rating (and spend only a small amount on it, then pay it straight back). Firstly, I'd like to know if this is correct?

Secondly, I've looked into credit cards online already and I don't really understand them. I don't have a credit card already, so as far as I'm aware, I don't want a 'balance transfer'...

If somebody can help me find the right sort of credit card, that would be amazing. Here are a few pointers about me, which might determine which one I need:

- I've just turned 21 today :beer:
- I work full time, but I'm also a part time student with the OU
- I travel a lot
- My local shops are Morrisons and the Co-op, so Tesco as CC provider isn't an option

I'd prefer not to pay anything for the credit card annually too (but this might be dreaming..!)

Thanks!
Emma

[Deleted User]

Apply for one with your own bank, or aqua, vanquis, cap 1. No fees - just put your regular spending on it and pay off in full each month.

Over time, you wil then be able to get a card with some kind of rewards - eg cashback.

bsms1147

A credit card is simply a way of deferring payment until a point in the future. For example everything you buy in February using it, you will be told the total at the start of march and then you will pay back at the end of March. Everything you buy in march you be told the total to pay back at the start of April, then you will pay that amount back at the end of April.

If you wait until you are told what each month's total is, the 'statement' amount, and then pay it back in full, you will not incur any interest and you will be helping your credit file. If you pay it all back before the statement is produced, it won't be helping your credit file.

Lots of different companies do credit cards, like Tesco as you say, Amazon, M&S, loads. It doesn't matte where you use tees cards, so not shopping in tesco won't mean you can't have a Tesco card, but those cards just give additional benefits when used in the respective shops.

As you have not had a credit card in the past you should look at 'credit building' cards - look in the Credit Card tab at the top of the site for the current best deals. These usually have higher rates of interest, but providing you pay back each month on time and in full you will not pay any interest, whatever the rate is.

m00se1986

I would perhaps consider the 'Aqua Advance' card (note: not the same as Aqua Classic). As well as being designed for those with poor/no credit history there is also no foreign transaction fee - handy if the travel you mention is abroad. As mentioned already pay off in full every month and the interest rate is not of concern.

iAMaLONDONER

EmmaNeedsAdvice wrote: »

- My local shops are Morrisons and the Co-op, so Tesco as CC provider isn't an option

Emma

That's no reason as to why you can't have a Tesco CC (or Sainsbury's or Asda for that matter)