Making good choices for first credit card

COTTO

Hi,

I have read through some of the threads here but I'm creating a new thread for my situation.

I would like to kindly ask for any advice on credit cards as I'm almost clueless to what makes a good/bad one. My questions may seem basic to some but I've never needed to look into this before.

I am considering getting a credit card to improve my credit rating (I've never needed a credit card as I've also managed my money well but weirdly, in order to prove I handle my finances well, I need to get a credit card).

Firstly, is there a difference between applying online and applying in branch for credit cards? For example, does doing it online usually mean you get a better deal? If I do go into branch are there any specific questions I should be asking or things to look out for? I don't want to seem completely clueless in there for the salesperson to take advantage of that.

Secondly, what exactly should I be looking for in a credit card? Low interest rates, as near as possible to 0%? cash back? I'm not entirely sure what makes any credit card better than another. I'll probably use my credit card for my weekly shopping mostly and will pay it off on time.

Thirdly, I currently have an account with Halifax. During my searches on the web, their name hasn't come up as being amazingly good. Santander's 123 card has been suggested to me for its cashback options but I don't currently own a car and it was listed as the best card for car owners.

Any advice will be much appreciated.

Thanks

no1wf

I'm currently in the same situation so I'm not able to offer much help unfortunately as I know about as much as you do lol

I'm looking at this card as I happen to have a spare account with Santander, but it does list a Halifax card as also having 0% but for 1 less month than the Santander if you'd rather stay with Halifax
http://www.santander.co.uk/csgs/ContentServer?c=Page&canal=CABBEYCOM&cid=1324567969837&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

COTTO

Thanks no1wf. I'll take a further look into that link you sent.

I did have a dormant account with Santander which I closed since having mulitple accounts apparently also brings your credit score down I may go back to Santander if they can offer something good.

Any further advice re my post above from anyone is more than welcome

Thank you

System

If it's your first credit card, you might only have success with your main bank.

Assuming this is Halifax, look on their website for their best deal for you

thebritishbloke

As you've said that you've never had any form of credit before now (I'm guessing you've also not had any mobile phone contracts, or loans etc), you'll probably be better off going for one of the credit-building cards.

I personally went for a Vanquis (Aquis) card when I turned 18, got accepted straight away with a £250 credit limit, which raised a couple of times. In 18 months, I got accepted for a £15k HP loan, and a £3,500 BarclayCard rewards card. It's just a matter of patience and responsible spending.

The more popular credit-building cards are BarclayCard Initial, Capital One Classic, Aqua, Vanquis and a few more. (I'd recommend them in that order).

If you've had your bank account with you current bank for at least 5 years (providing you've also been over 18 for at least 5 years), I'd also have a go at applying with your bank first.

lr1277

COTTO wrote: »

Hi,


Secondly, what exactly should I be looking for in a credit card? Low interest rates, as near as possible to 0%? cash back? I'm not entirely sure what makes any credit card better than another. I'll probably use my credit card for my weekly shopping mostly and will pay it off on time.

Thanks

One of the good reasons to have a credit card is buy things you can afford and pay for it later. In the meantime, the money you would use to pay the card is sitting in a savings account earning interest. Some of the other reasons are listed further on down.
If you are sensible, you will buy things now and pay it off in full when the statement arrives, preferably by direct debit.


Some people use a 0% purchase card to buy big ticket items and then pay them off during the interest free period. Say you want to buy some new furniture but it costs more than you can afford in one month, use a 0% purchase card to buy it and then pay it off in full during the interest free period. If it takes any longer than that, you end up paying large amounts of interest.


Some people use them to transfer balances on existing cards onto the new card, which will have a low rate of interest. This gives them more time to pay off more of the balance (including interest accrued) without too much more interest being added to the balance.


With all of that out of the way, you should decide on your needs.
If this is your first card, which you are learning to use, I would get a card without any frills or offers. Show the lender you are capable of handling THEM LENDING YOU money, which needs to be repaid.
If you have a current account with a bank/building society for a while, apply to them for their card. If you get their card, you will build up credit history.
Once you are comfortable with having a card and repaying it off in full every month, then you can look at cards that give cashback/points/whatever if you use that card. However use your first card well for at least six months to build up a credit history.


HTH.

giblet10

When my life restarted at 36 I turned to Vanquis who said yes - and then upped my limit quite quickly. After two years I went mainstream so closed the Vanquis - but never had fault with their service.

Their APRs are quite high but they were the only ones who would consider me for a card at the time.

If you can get a card with your bank that's probably a better deal as the APRs are lower (most likely) and you'll probably start with a better credit limit.

Of course, if paying off every month, APRs are irrelevant.

ricky_v

Get the Capital One Classic Extra

http://www.moneysavingexpert.com/credit-cards/cashback-credit-cards#caponeclassic

Set up a Direct Debit to pay the statement balance off in full

Get 0.5% cashback plus £10 a year of free money

:money:

zinsavage123

Many seem to talk about and like capital one. Like mentioned above.

planteria

your own bank may well be a good first port of call.

the providers to be with, in terms of borrowing, over an extended period, with a 'stoozing' strategy of any kind, are MBNA and Barclaycard...based upon previous experience.

beyond that, using a credit card to spend on is all about getting the best Cashback/Rewards for you.

COTTO

Perfect all! Thanks so much for your answers! I'm going to look into the options given above.

Much appreciated.

Thanks again.