New to credit cards

Firmy

Hi,

Iv'e never had a credit card before, but would like to get one to boost up my credit rating etc.

What should i be looking for?

I had a default on my file from 2010 which is now been sorted and paid off. I am debt free now, with only insurance and phone bills coming out monthly.

Any help would be much appreciated.

Many Thanks
Ryan

symphonies

If you're new to credit cards then the first step would be to try and apply for one with the bank you bank with. Reason for this would be that they are familiar with your banking history and know what regularly comes in and goes out of your account.

Failing that, try the more 'easy to get' cards for people with little/no credit history and/or bad credit history. They'll probably start you off with a low limit but that's all you need in the beginning. When you show that you're able to use this sensibly, they'll increase it.

If you go for the latter option, then I guess the best starter card to go with would be the Barclaycard Initial as there's a likely chance that they will upgrade you to one of their better cards after a while.

Regardless of what you go for, always set up a DD to pay in full so that you don't pay any interest!

FormulaDriven

I know it's just been said, but I'd reinforce the point that you should set up a direct debit to pay off the monthly balance in full (it's usually an option offered at the time you apply, so straightforward to arrange). Failing to pay off the balance will not help your credit rating and will get costly with interest building up.

The exceptions might be:

1. if you are applying for a zero interest deal (see elsewhere on this site for what's available), so can take advantage by not paying off until the zero period ends. (But save the cash in the meantime to do this).

2. you are intentionally getting the card to make a large purchase now, and wish to pay it off over time - an attraction if you can get a low interest deal (otherwise, you'd probably want to consider a loan).

In those cases, set up the DD to only make the MINIMUM payment each month.

Candyapple

If you have a default, your best bet for a credit card will be with Barclaycard Initial, Cap 1 or Vanquis.

Dobbibill

I agree with other posters to try your own bank first, just ask the question, don't do an online application or anything. If your not eligible you know to move on to plan B without doing a full application with them.

Also I echo what has been said about setting up the DD to pay off in full. If you don't, it only takes a busy day to distract you on the due date which could set you back to square one.

If you are not eligible with your own bank then it may be worth check this out https://creditcards.moneysavingexpert.com/

Although this is never guaranteed, it will give you an idea of who to apply to.

Firmy

Many Thanks for the replies.

Yes i intend to pay off full each month, i won't be using it everyday like, just here and there on petrol and groceries e.t.c.

Is that the best thing to do then, is to set it up with direct debit?

Ryan

dresdendave

Firmy wrote: »

Many Thanks for the replies.

Yes i intend to pay off full each month, i won't be using it everyday like, just here and there on petrol and groceries e.t.c.

Is that the best thing to do then, is to set it up with direct debit?

Ryan

There is no obligation to set up a DD but it puts the onus on the CC to collect the payment, rather than you having to remember to pay manually.

FormulaDriven

Sorry, I couldn't help smile: three out of four responders to this thread said you should set up a DD to pay off balance in full, and the original poster comes back...

Is that the best thing to do then, is to set it up with direct debit?

Let me just think about that one...:cool:

Firmy

I'm sorry that I want to be extra careful when getting a credit card. Like I said before it's new to me.

MallyGirl

yes DD to pay in full is the safest way to go.
If they forget to collect the money it is their problem - if you forget to pay it the problem is yours.

agrinnall

I'd agree with everyone else that full balance DD is the best option, it's something I've always done, but you must take care to check your statement to see when the DD will be taken and ensure that the money is in the account in advance, otherwise you'll end up with a missed payment and possibly a charge for an unpaid DD.