What should I look for in a first credit card?

CurryCee

Hi all,

I'm thinking about getting a credit card in order to better improve my credit score for my future (and whilst I'm still in my early twenties). My current way of thinking is to get a card with a 0% interest rate for the longest time possible and just make sure it's all paid off by the time the 0% interest period is up.

According to the MSE compatibility calculator, I won't qualify for the Post Office 25 month card, though I have a 40% chance of being accepted for Virgin Money's all-around credit card (24 months interest free).

So I was wondering - if I only have a 40% chance of being accepted by a card - what factors do banks take into account? And how come it's not an automatic yes/no decision?

Thanks!

grumbler

You can take your chances by applying for one of the best cards, but a typical first CC is either from the bank one has a current account with or one of Credit Cards for Bad Credit

Don't be put off by the words 'bad credit' as this includes luck of credit history as well.

uncreative

Try to get something that has a mobile app, good online access and some sort of incentive, such as cashback.

I would avoid AMEX as that is not as widely accepted and you could be stuck having to use debit card more than you want.

Sharon87

My first credit card was with who I banked with. I had applied for a Virgin card before that and got rejected, it's not really a first credit card kind of company.

If you've managed your bank account well you could be likely to get a credit card with them.

Paul_1977

Metro bank or Barclaycard initial.

If you bank with your bank for more than six months and in good standing try them. Lloyds

CurryCee

uncreative wrote: »

I would avoid AMEX as that is not as widely accepted and you could be stuck having to use debit card more than you want.

I don't really have a problem using debit, although I know for a fact I don't qualify for AMEX.

Paul_1977 wrote: »

If you bank with your bank for more than six months and in good standing try them. Lloyds

I've been with First Direct for 5 months, having previously been with Barclays for 7 years.

CurryCee

Sharon87 wrote: »

I had applied for a Virgin card before that and got rejected, it's not really a first credit card kind of company.

If you've managed your bank account well you could be likely to get a credit card with them.

If I apply and get rejected, will this negatively affect my credit score? Is it worth the trade-off?

Cycrow

Personally i think getting a 0% card as your first card is a bad idea.

it could lead you into a bad habits, by getting you used to putting money on the card while only paying the minimum.

much better to just get a card and get used to paying it off in full each month

Sharon87

CurryCee wrote: »

If I apply and get rejected, will this negatively affect my credit score? Is it worth the trade-off?

If you make multiple applications for credit in a short period of time then it can negatively affect your credit rating. But 1 or 2 searches in 6 months won't negatively affect your rating.

If you do get accepted for a credit card the best way to build you history is what Cycrow has said. Get a credit card, use it for every day spends and pay it off in full every month. Paying minimum every month on a credit card is bad management of credit history, you're telling the lender you can only just afford to pay it back.

GTR_King

Id say spend £50/£100 each month on the credit card e.g food shop etc

that will help your credit score massively...

CurryCee

Cycrow wrote: »

Personally i think getting a 0% card as your first card is a bad idea.

it could lead you into a bad habits, by getting you used to putting money on the card while only paying the minimum.

much better to just get a card and get used to paying it off in full each month

I mean, I'll either be getting one via First Direct or Virgin Money, which both come with 17 months and 24 months 0% interest periods, respectively - I'd still intend to pay it off in full every month.

According to the MSE calculator, I think I have about a 30% chance of being accepted for AMEX.