Will Barclaycard offer me new credit cards in the future?

ryuuoo

Hi there,

I'm a student at the moment and back in December I wanted to start building up my credit history.

Went in to see a personal banker at Barclays and she basically agreed to offer me a Barclaycard Freedom Rewards card with a starting limit of 250 pounds.

I was wondering if in the (near) future it is likely that I will get an offer from Barclays to get a better credit card?

What would you recommend I do?

Use this one (B. Freedom Rewards) for a year or so and then apply for something elsewhere/with Barclaycard for example?

Basically... how does one get better deals on credit cards? Is it a question of years and years on end?

Thanks!

Davie2909

TBH the freedom rewards card is a good card you just need to get your limit up but that will come in time with Barclaycard

udydudy

Take the card use it every month up to or near the limit (but never go above it) and pay it off in full every month. After 6 months ask for a credit limit increase then use it up to limit and pay off every month after 3-4 months ask for another limit increase. and the circle goes on!!!!

As long as you keep paying off in full (and in time) and have a good income your limit should go up

MisterBaxter

Take the card use it every month up to or near the limit (but never go above it) and pay it off in full every month. After 6 months ask for a credit limit increase then use it up to limit and pay off every month after 3-4 months ask for another limit increase. and the circle goes on!!!!

As long as you keep paying off in full (and in time) and have a good income your limit should go up

Doesn't utilising too much of your available credit pose other problems when looking for credit elsewhere? Advice I have seen posted elsewhere is that you should keep utilisation low if you want to look more attractive to lenders. Do Barclaycard report that bills are paid in full?

ryuuoo

Thanks guys for your answers!

Yeah, I guess I will keep doing that... because right now I reach my limit of 250 really quickly so basically within the first two weeks of the month I have to put the card away.

So say I keep doing that four a few years while I start my career etc... Do you think I would be able to then apply for better cards Amex etc...?

Aquamania

What do you mean by a "better" credit card?

i.e. What do you want that is available elsewhere that the current credit card does not offer you?

Alarae

I had the same thought as you; why not build my credit rating while at University so when I finish I'll have a good foundation for a credit report.

I started off with a Lloyds Student (£1000) in July 2012.
Capital one Classic Extra (£500) and Aqua Reward (£250) in January 2013.

I paid these off in full each month, putting through my main spend on the Aqua (3% Cashback), residual spend on Cap 1 (0.5% cashback) and then a token spend on the Lloyds. This got me a good repayment history.

In October 2013, a year or so after my first credit card I got accepted for an Amex Everyday Platinum Cashback (£3000), my first proper 'prime' cashback card, gained in just over a year of good payment history

So off my own student experiences, use your Barclaycard each month and pay in full, then in a year or so shoot for a cashback card that takes your fancy. If you find you are reaching the limit mid-month then just make a faster payment to the account then you will have your limit available again.

(I now also have a Halifax Clarity and Nationwide Select, with my 'credit builder' cards Aqua closed, to be followed by Lloyds as it offers me nothing useful).

Herbalus

Exactly the same here, though I got credit cards for rewards as a student. After a Natwest student card (limit £500), I got what Martin Lewis calls "devils debt" cards i.e. a House of Fraser storecard (limit £1000). After a year of those I went for an Aqua because it was 3% cashback (limit £350), and now have a Luma 4% cashback on supermarkets (limit £1000), and John Lewis Partnership (limit £1750), which is quite a lot of available credit for a 4th year student

You don't need to spend up to the limit to get a good credit report or get a credit limit increase more quickly.

Also, remember that the cards with the best rewards (normally Amex) tend to require a certain income as well as a good record. Amex normally require £20,000 income, so you won't get that until you graduate. Any card as a student will do, and if you manage it properly, you'll be able to get most cards on the market a short while after graduation (assuming you get a job that is! - that's not always easy).

ryuuoo

Thanks a lot guys for sharing your own experiences!


Funnily enough I have just got home to see that I have received a letter through the post from Aqua saying that I have been pre-selected (I had applied in June last year...) for an Aqua Classic...

Do you think I should apply for this one? I'm sure I would only get a small credit limit (If I get accepted)... Or should I try Capital One...Luma...?

Herbalus

If it were me I'd probably apply for the Capital One Classic because that at least gives you 0.5% cashback. If you're worried about being accepted or not then go for the Aqua because they're pre-selected you (have they said they'll accept you, or just that they're inviting you to apply again?).

At this stage credit limits don't matter, because it's the consistent marker of successful repayments on your credit file that does the good work. You'd only really need to put one purchase a month through each card, and having two cards will not only help your file, but also be useful just in case you lose one/it gets blocked.

Tuareg

I started off with something similar (£500 limit though). 10 odd years later having NEVER asked for an increase in my credit limit I've now got a limit I believe of £15,000. BarclayCard have a laughable interest rate of nearly 26% on that thought!!