credit where credits due..

ricky_v

UrbanSurferKid wrote: »

Hello,
My question really is in the current market what is a good credit card to start with in order to build my credit score? Should speak to my longstanding bank or look elsewhere?

Capital One Classic Extra

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

Set up a direct debit to pay off the statement blance in full and enjoy 0.5% cashback plus £10 a year of free money.

There should be a sticky to advise people with a limited credit history to try this card first (unless a better card comes along). I say that because it's a sub-prime card so fairly easy to get plus you get free money with it.

Really it's a no brainer!

Anthorn

Everyone is commenting in relation to their own circumstances and what they personally do but what you do does not necessarily apply to everyone else. But that illustrates that there are several options available in the credit card market. For example anyone who is looking to buy a new cooker with a credit card and pay it off over a period would be bonkers to use a Vanquis card if they are able to get a 0% purchase card. Similarly the cashback/gifts/points gained from a rewards card might be significant for one person but insignificant to someone else. Personally, I do my everyday shopping at Lidl and buy other items including luxury items at Amazon. So for a rewards card to be significant for me there would have to be rewards when I shop at Lidl and Amazon. Or I could do like some people and go out and buy something for 100 quid just because I get 3 quid cashback

The key is to decide on what you want a credit card for and how you will use it and then to shop around for the best deal.

Herbalus

Anthorn wrote: »

Everyone is commenting in relation to their own circumstances and what they personally do but what you do does not necessarily apply to everyone else. But that illustrates that there are several options available in the credit card market. For example anyone who is looking to buy a new cooker with a credit card and pay it off over a period would be bonkers to use a Vanquis card if they are able to get a 0% purchase card. Similarly the cashback/gifts/points gained from a rewards card might be significant for one person but insignificant to someone else.

Everyone is commenting in relation to the thread, which is about using a credit card in 'normal' circumstances for everyday spending. Buying new cookers, kitchens or holidays isn't everyday.

Plus it's a general rule: paying off in full means the APR is irrelevant. If you can't pay off in full, I don't believe you should have bought it with a credit card (some circumstances excepted of course, like budgeted 0%, or if you're stranded somewhere).

Anthorn

Herbalus wrote: »

Everyone is commenting in relation to the thread, which is about using a credit card in 'normal' circumstances for everyday spending. Buying new cookers, kitchens or holidays isn't everyday.

But it is for a lot of people: Last week I bought a Roku 3 box with my Aqua card that I'm paying for over 3 months and that's normal for me. Then there are those whose card just sits in their wallet unused until they need it and that's normal for them. There are those who keep a balance just so they can make a payment which is more than the minimum and those who clear their balance every month. The way people use their credit card is wide and varied.

There is of course the argument that using a credit card for everyday spending is a completely wrong way to use a credit card and that's what a debit card is for! Related to that is the argument that if a credit card is used to buy food because no money is available in a bank account then that's the beginning of the end!

I say again, just because you use it in a certain way doesn't mean that everyone else uses it in that same way.

CLAPTON

Anthorn wrote: »

But it is for a lot of people: Last week I bought a Roku 3 box with my Aqua card that I'm paying for over 3 months and that's normal for me. Then there are those whose card just sits in their wallet unused until they need it and that's normal for them. There are those who keep a balance just so they can make a payment which is more than the minimum and those who clear their balance every month. The way people use their credit card is wide and varied.

There is of course the argument that using a credit card for everyday spending is a completely wrong way to use a credit card and that's what a debit card is for! Related to that is the argument that if a credit card is used to buy food because no money is available in a bank account then that's the beginning of the end!

I say again, just because you use it in a certain way doesn't mean that everyone else uses it in that same way.

of course people's usage of CCs is different.

some people use them badly and end up paying interest and others use them sensibly and pay no interest but gain other benefits.

eskbanker

Anthorn wrote: »

Everyone is commenting in relation to their own circumstances and what they personally do but what you do does not necessarily apply to everyone else.

Anthorn wrote: »

I say again, just because you use it in a certain way doesn't mean that everyone else uses it in that same way.

This is exactly what I and others have been saying back to you in response to your sweeping generalisation that "The best credit card at any time is the one with the lowest APR you can get"! Different people use cards in different ways, so your statement that APR is paramount applies to some but not others and so can't be portrayed as some unarguable universal fact.

Anthorn

eskbanker wrote: »

This is exactly what I and others have been saying back to you in response to your sweeping generalisation that "The best credit card at any time is the one with the lowest APR you can get"! Different people use cards in different ways, so your statement that APR is paramount applies to some but not others and so can't be portrayed as some unarguable universal fact.

We are replying to the OP. In the OP's case APR matters. Here's what the OP says:

Now it seems due to my annual income and the fact that I am a tenant as opposed to a homeowner only certain types of cards are available to me? I doubt having never used one that I will use that often but to pay for mini-breaks, holidays or larger one off purchases etc.

eskbanker

Anthorn wrote: »

We are replying to the OP. In the OP's case APR matters.

There is nothing in the OP's post to support that conclusion - in fact on the contrary OP states "I doubt having never used one that I will use that often", which I'd read as not planning on building up a balance and paying it off over time.

Don't get me wrong though, I'm not saying that APR never matters for anyone, just that conversely it's illogical to claim that it always matters for everyone!

Anthorn

eskbanker wrote: »

There is nothing in the OP's post to support that conclusion - in fact on the contrary OP states "I doubt having never used one that I will use that often", which I'd read as not planning on building up a balance and paying it off over time.

Don't get me wrong though, I'm not saying that APR never matters for anyone, just that conversely it's illogical to claim that it always matters for everyone!

You missed out a bit:

I doubt having never used one that I will use that often but to pay for mini-breaks, holidays or larger one off purchases etc.

The bolding is mine.

Are you serious or are you trolling? I suspect the latter.

SuperHan

Anthorn wrote: »

You missed out a bit:

The bolding is mine.

Are you serious or are you trolling? I suspect the latter.

However, the OP doesn't say whether they are doing this for the S75 protection given by the credit card. There is no implication that this is to do with spreading the cost.

In fact, the OP suggests that he has little knowledge of credit cards, so the best advice to him would be to get any card, put regular, small amounts of spend on it (such as all petrol) and pay it off in full every month. That is more likely to improve the credit rating of the OP, as desired.

It gets complicated for someone who doesn't particularly understand credit cards to start juggling 0% periods. It is much easier to build a credit rating by paying small amounts in full each month.


On a side note... If you have to split £80 expenditure over 3 months on your credit card, maybe looking at your own situation would be wise. Not that you personally don't know what you're doing, but that's the point where a lot of people start to fall down the slippery slope. It wouldn't be so hard to save for 3 months to get to the £80, or just to pay in full.... There's no real advantage to spreading the cost over such a small period. What if you lost your job, or a source of income etc etc?