Getting a 0% credit card before they all disappear

Ransom_Dry_Elk

I'm looking to buy as a first time buyer before the end of the year and will need to make some large one off purchases when I do that so am looking for a 0% credit card. I've always got by just fine with my debit card up to now, I've not had a credit card before as I've never had any particular need and have been put off by the list of complex charges.

Unfortunately 0% cards seem to be a rapidly disappearing breed from what I've seen First Direct, Natwest, RBS don't do 0% cards. The remaining offerings all seem to be very similar i.e. no annual fee, £3 or 3% ATM usage fee (which I'd like to avoid if possible) and for foreign purchases a non-sterling transaction fee 2.95% of the amount of the sterling transaction value and a cash fee of 3% or minimum £3. They all also seem to jump up to 16.9 or 17.9% APR after the 0% period whereas low rate cards seem to have an APR of around 12.9%. The Halifax Clarity looks good for low rates with 0% on foreign purchases and no ATM fees.

I'm thinking of getting a 0% card now and switching to a low rate later. For a 0% card the Lloyds Advance seems to be the cheapest with 0% for 6 months with 11.9% APR thereafter, although it does have 4.9% on balance transfers and those pesky foreign purchase and ATM fees.

What would people recommend for someone in my situation?

CLAPTON

Ransom_Dry_Elk wrote: »

I'm looking to buy as a first time buyer before the end of the year and will need to make some large one off purchases when I do that so am looking for a 0% credit card. I've always got by just fine with my debit card up to now, I've not had a credit card before as I've never had any particular need and have been put off by the list of complex charges.

Unfortunately 0% cards seem to be a rapidly disappearing breed from what I've seen First Direct, Natwest, RBS don't do 0% cards. The remaining offerings all seem to be very similar i.e. no annual fee, £3 or 3% ATM usage fee (which I'd like to avoid if possible) and for foreign purchases a non-sterling transaction fee 2.95% of the amount of the sterling transaction value and a cash fee of 3% or minimum £3. They all also seem to jump up to 16.9 or 17.9% APR after the 0% period whereas low rate cards seem to have an APR of around 12.9%. The Halifax Clarity looks good for low rates with 0% on foreign purchases and no ATM fees.

I'm thinking of getting a 0% card now and switching to a low rate later. For a 0% card the Lloyds Advance seems to be the cheapest with 0% for 6 months with 11.9% APR thereafter, although it does have 4.9% on balance transfers and those pesky foreign purchase and ATM fees.

What would people recommend for someone in my situation?

if you have never had a CC then you may find it difficult to get a 0% card or one with a decent credit limit as they tend to go to people with a proven credit history (i.e. some-one who already has a CC)




if you are think of getting a mortgage I would advise you don't apply for any credit too near your mortgage application


what bank do you use ?


have you read Martin's CC section ?

YorkshireBoy

Ransom_Dry_Elk wrote: »

Unfortunately 0% cards seem to be a rapidly disappearing breed from what I've seen First Direct, Natwest, RBS don't do 0% cards.

Quite the opposite is true...there are currently more 0% on purchases credit cards, with longer introductory periods, than there have ever been. Even the credit builder cards now have 0% intro periods. FD haven't done 0% on purchases cards for a very long time (and maybe never did?), with the exception of a possible short 3 months 0% on purchases on their 0% BT card. And RBSG's decision to pull out of the 0% market is a very recent one. I'm not aware of any other lenders who have followed suit...probably much to their annoyance!

What would people recommend for someone in my situation?

Apply for the best 0% card and plan to have paid it off by the end of the intro period, rather than looking at go-to rates.
Don't apply for the mortgage with large credit card debt, and bear in mind that even if you get an agreement in principle they'll likely credit search you again before releasing the funds/finalising it.

katejo

Ransom_Dry_Elk wrote: »

I'm looking to buy as a first time buyer before the end of the year and will need to make some large one off purchases when I do that so am looking for a 0% credit card. I've always got by just fine with my debit card up to now, I've not had a credit card before as I've never had any particular need and have been put off by the list of complex charges.

Unfortunately 0% cards seem to be a rapidly disappearing breed from what I've seen First Direct, Natwest, RBS don't do 0% cards. The remaining offerings all seem to be very similar i.e. no annual fee, £3 or 3% ATM usage fee (which I'd like to avoid if possible) and for foreign purchases a non-sterling transaction fee 2.95% of the amount of the sterling transaction value and a cash fee of 3% or minimum £3. They all also seem to jump up to 16.9 or 17.9% APR after the 0% period whereas low rate cards seem to have an APR of around 12.9%. The Halifax Clarity looks good for low rates with 0% on foreign purchases and no ATM fees.

I'm thinking of getting a 0% card now and switching to a low rate later. For a 0% card the Lloyds Advance seems to be the cheapest with 0% for 6 months with 11.9% APR thereafter, although it does have 4.9% on balance transfers and those pesky foreign purchase and ATM fees.

What would people recommend for someone in my situation?

You may not get one if you have never had a credit card. On my way to work today I saw posters about Nat West withdrawing 0% cards. Because over 60% of card holders forget to clear the card or transfer before the end of the 0% period, they have decided to discontinue the card! How about those who don't forget?

AJG384521

katejo wrote: »

You may not get one if you have never had a credit card. On my way to work today I saw posters about Nat West withdrawing 0% cards. Because over 60% of card holders forget to clear the card or transfer before the end of the 0% period, they have decided to discontinue the card! How about those who don't forget?

Surely if people don't clear the card or transfer the balance elsewhere it is better for Natwest?

Pincher

I spoke to somebody from a funny country recently, where they do everything in cash. People pay rent one year in advance! They have been carrying on the same way in the UK for the last four years, paying by debit card, so they have no credit history at all ! Paying rent doesn't count, yet. Talking about buying a house, and they "might not have enough cash" by selling their house in the old country. So they are now getting a credit card to get started on a credit history.


Should have started four years ago. My first card had a £100 credit limit. Even years later, John Lewis only gave me £400 to start with on the store card. Now Barclaycard gives me £13k just by applying.


A credit history is like a tree. It needs regular feeding, nurturing. Thirty years later, it's tall and green, and the fruits are sweet.

planteria

yes, i disagree with the premise too.
there are plenty of good deals around..
although consolidation in the market has meant that there are fewer players in the game.

Ransom_Dry_Elk

Pincher wrote: »

I spoke to somebody from a funny country recently, where they do everything in cash. People pay rent one year in advance!

Sounds like a very German thing! Got to say it makes a lot of sense and it certainly helped reduce the impact of the recession on them.

CLAPPER wrote:

if you have never had a CC then you may find it difficult to get a 0% card or one with a decent credit limit as they tend to go to people with a proven credit history (i.e. some-one who already has a CC)

if you are think of getting a mortgage I would advise you don't apply for any credit too near your mortgage application

what bank do you use ?

katejo wrote:

You may not get one if you have never had a credit card.

Didn't know that,I looked up my credit rating a while ago and it was very good but I don't want credit card rejections in there if I can help it but also don't want to have to pay the 11.9% APR of a low rate card on purchases I'll need to make. I'm with Lloyds Bank and they've been trying to push me credit cards for ages.

jonesMUFCforever

Ransom_Dry_Elk wrote: »

Sounds like a very German thing! Got to say it makes a lot of sense and it certainly helped reduce the impact of the recession on them.






Didn't know that,I looked up my credit rating a while ago and it was very good but I don't want credit card rejections in there if I can help it but also don't want to have to pay the 11.9% APR of a low rate card on purchases I'll need to make. I'm with Lloyds Bank and they've been trying to push me credit cards for ages.

Go for the online application then - you might get offered a longer 0% deal than in branch.

AJG384521

Ransom_Dry_Elk wrote: »

Didn't know that,I looked up my credit rating a while ago and it was very good but I don't want credit card rejections in there if I can help it but also don't want to have to pay the 11.9% APR of a low rate card on purchases I'll need to make. I'm with Lloyds Bank and they've been trying to push me credit cards for ages.

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katejo

AJG384521 wrote: »

Surely if people don't clear the card or transfer the balance elsewhere it is better for Natwest?

Yes I thought the same but perhaps they are 'pretending' to be socially responsible?