First time credit card?

cazs

Hi
I've never had a credit card before as not really needed credit, or to borrow money that is. I've always relied on my trusty debit card but it's occurred to me that it's risky to rely on just one card in case something goes wrong with that card, or it gets lost or the banks have one of their computer crashes or whatnot so I thought I really ought to get a second card and thought that I'd best go with a credit card rather than a second debit card because of the additional protection under section whatever-it-is that you get get on purchase over £100 on credit cards that you don't with debit ones.

Anyway, I thought as I'd no need for the credit limits and plan to use a direct debit to pay off in full each month cashback would be the best for me. So I looked at the AMEX 5% cashback card that MSE recommend and though I seem to meet their criteria for eligibility, MSE only gave me a 50% likelihood of being approved for the card.

Is this because I've not had credit cards before? I've only borrowed for my student loan and my mortgage. Am I right in understanding that I don't have a great chance of getting the card because I've not had other cards before?

If that is the case, does anyone have any advice on how to proceed? If I do apply for the AMEX one which is 50/50 if I get turned down, even though I don't have issues with owing money my credit would drop by a point wouldn't it?

Any guidance please?

thegreenmonkey

Your credit report will help answer some of your questions.

One credit card rejection wouldn't really affect your score.

Got my first card several months ago - also aiming for AMEX cashback.

CLAPTON

cazs wrote: »

Hi
I've never had a credit card before as not really needed credit, or to borrow money that is. I've always relied on my trusty debit card but it's occurred to me that it's risky to rely on just one card in case something goes wrong with that card, or it gets lost or the banks have one of their computer crashes or whatnot so I thought I really ought to get a second card and thought that I'd best go with a credit card rather than a second debit card because of the additional protection under section whatever-it-is that you get get on purchase over £100 on credit cards that you don't with debit ones.

Anyway, I thought as I'd no need for the credit limits and plan to use a direct debit to pay off in full each month cashback would be the best for me. So I looked at the AMEX 5% cashback card that MSE recommend and though I seem to meet their criteria for eligibility, MSE only gave me a 50% likelihood of being approved for the card.

Is this because I've not had credit cards before? I've only borrowed for my student loan and my mortgage. Am I right in understanding that I don't have a great chance of getting the card because I've not had other cards before?

If that is the case, does anyone have any advice on how to proceed? If I do apply for the AMEX one which is 50/50 if I get turned down, even though I don't have issues with owing money my credit would drop by a point wouldn't it?

Any guidance please?

for a first card best to ask your own bank first as they know you best

once you get it, use it regularly and pay in full each month

after a few month try for a card with benefits like cashback


and unless you have a specific large purchase in mind, 5% for only the first 3 months is pretty much a waste of time

thebritishbloke

Make sure you're enrolled on the electoral roll. I wouldn't try to apply for the AMEX card if you've never had any credit before (also guessing you haven't ever had a mortgage).

You'll probably be best off going through your own bank in this case. People always say "I never get a credit card because I don't need to borrow money", but if you're paying it off in full every month it becomes a very useful tool.

cazs

thebritishbloke wrote: »

Make sure you're enrolled on the electoral roll. I wouldn't try to apply for the AMEX card if you've never had any credit before (also guessing you haven't ever had a mortgage).

You'll probably be best off going through your own bank in this case. People always say "I never get a credit card because I don't need to borrow money", but if you're paying it off in full every month it becomes a very useful tool.

Hi, yes I do have a mortgage, not for long, only two years but no probs paying it so far.

thebritishbloke

cazs wrote: »

Hi, yes I do have a mortgage, not for long, only two years but no probs paying it so far.

So you do have credit, having a mortgage is a very key part of credit.

I've never had a credit card before as not really needed credit, or to borrow money that is.

We need to know the whole story if you want advice.

Given that you're a home owner, and you meet all the criteria for the AMEX card, I'd give it a go at applying for it.

DebtFree14_2

Initially you said you wanted the card for emergencies in case your debit card broke, then you mention cash back cards and paying in full each month????

As said on a previous post if you just want a card for emergencies always go with your bank. If you have been a good customer you should get one with no issues. They are the ones who truly know how your doing financially.

cazs

DebtFree14 wrote: »

Initially you said you wanted the card for emergencies in case your debit card broke, then you mention cash back cards and paying in full each month????

As said on a previous post if you just want a card for emergencies always go with your bank. If you have been a good customer you should get one with no issues. They are the ones who truly know how your doing financially.

I mean, it's better to have a second card in case of problems but if I was going to get one, it's nice to get one where you get cashback. I don't think the two are incompatible.

DebtFree14_2

Not incompatible however normally a credit card that gives you something back wants a better credit rating initially. If you applied for a fancy card and got rejected then that is negative to you rating if that makes sense. If you just want it for emergencies then a basic own bank one should be fine. In my opinion that is..

cazs

thebritishbloke wrote: »

So you do have credit, having a mortgage is a very key part of credit.



We need to know the whole story if you want advice.

Given that you're a home owner, and you meet all the criteria for the AMEX card, I'd give it a go at applying for it.

To be clear, no credit apart from student loan and mortgage mentioned in original post, which I would have thought would be categorized differently than having taken out credit cards before. Am on electoral roll.

I have looked at applying for one at Natwest, (my bank) though they only seem to have a very limited range to my surprise and as I am not a student or black account holder there was only one I could apply for which had a fee attached to it which was a bit off-putting.

Was originally just going to apply straight for Amex one but the 50/50% chance of success MSE gave me just deterred me as I didn't want to get a black mark so to speak.

thebritishbloke

cazs wrote: »

To be clear, no credit apart from student loan and mortgage mentioned in original post, which I would have thought would be categorized differently than having taken out credit cards before. Am on electoral roll.

I have looked at applying for one at Natwest, (my bank) though they only seem to have a very limited range to my surprise and as I am not a student or black account holder there was only one I could apply for which had a fee attached to it which was a bit off-putting.

Was originally just going to apply straight for Amex one but the 50/50% chance of success MSE gave me just deterred me as I didn't want to get a black mark so to speak.

Sorry you are correct, I completely missed the fact you said you had a mortgage.

Student loans don't count as a proper loan in the UK, they'll never show on your credit report, so don't worry about them.

Check the AMEX website yourself, do you meet all the criteria, such as income etc? If you do, and you're 100% sure you've never missed a payment etc, I would just give it a go at applying. You have a mortgage, once credit card companies see that you've always been paying off your mortgage on time, they presume you're pretty financially responsible.