Applying for First Credit Card Questions?

OnTheRoad14

I'm going to soon be applying for my first credit card, probably Capital one Classic Extra. (cashback, not for borrowing) and I'm not 100% sure on when I should be using the card.

Is it just for spending: shops, petrol, online etc.

Am I right in thinking I can't set up a DD to pay for my phone contract for example?

Also, how hard/easy is it to set up a DD(standing order?) to make sure its paid off every month in FULL.

Thanks for any help.

colsten

If you want a cashback card, obviously you need to get one that pays cashback for the retailers you use.

You cannot pay anything by DD from your credit card. You should not pay things such as your mobile phone by CC as this will count as a cash purchase. Read up about the CC charges for cash purchases.

You should always pay your credit card in full each month. Paying by DD (not by SO) is the easiest to ensure the payments get made on time and for the correct amounts. You must, of course, have sufficient money in your account at the time (the CC statement will tell you the details). You might have to make the first payment by debit card or bank transfer as it takes a while for a DD mandate to be set up.

OnTheRoad14

Thanks for the reply.

I'm thinking about applying for a 123 CC for Petrol and a Capital One Classic Extra CC for my other spending, mostly onine, which 123 doesn't offer Cashback on.

Is applying for two CC in short session ok or is it better to wait?

thebritishbloke

OnTheRoad14 wrote: »

Thanks for the reply.

I'm thinking about applying for a 123 CC for Petrol and a Capital One Classic Extra CC for my other spending, mostly onine, which 123 doesn't offer Cashback on.

Is applying for two CC in short session ok or is it better to wait?

If you have no or little previous credit history (even if you've had just a phone contract before, I'd count that as little to no history), don't expect to get accepted for all the best deals (i.e. cashback, 0% purchases etc).

Applying for 2 cards won't really affect their decision, any more than that and you might start getting higher interest rates, lower limits etc.