New to credit cards -- seeking advice

estrellaafortunada

I've never had a credit card before and have always just used my debit card. But I'm looking to get a credit card that I can use for online shopping and booking flights because I know that it offers Section 75 protection for purchases over £100.

Although I'm new to credit cards, I have a good credit history, having had a car finance loan which I paid off each month.

Essentially, I'm not looking for a credit card to borrow money -- I'm after the added protection that they give. Even though I was only planning to use it for big purchases, is it a good idea to get a cashback card and start using it for most/all of my everyday spending? And then, obviously, pay it off each month...

When applying for one, is there anything vital I need to know? I'm a newbie, so any advice is much appreciated!

PeacefulWaters

Annual fees. You don't want them.

Introductory interest free periods.

Standard interest free period. Typically upto 56 days.

Cashback or other spending incentive.

If you've not had one before I'd suggest starting with checking out what your main bank offers.

[Deleted User]

The key thing I see people not being aware of is: If you're on a 0% deal, then you MUST still pay the minimum at the end of every single month, with the full balance BEFORE the end of the term.

Obviously saving the money you borrow on the 0% deal (to ensure you can repay) is key too, rather than just spending it/spending more. That's why MSE warns you should only do it if you're disciplined to keep however many thousand you're 'stoozing' in savings and not spend it

Don't max out the card, leave room for any mistakes etc.

Once you've reached say 90% of the card limit (or whatever you feel comfortable with) you'll need to use another card to spend on - be it another 0% card, or a 'standard' card etc.

Ask your bank as PeacefulWaters says, and check out https://www.moneysavingexpert.com/eligibility/credit-cards/ and pick the most relevant section to you (it won't affect your credit rating or 'score').

That will let you compare what you need/want, what your bank are offering (speak to a human and they should let you know how likely you are to get it), and how likely you are to get any better deals that you bank can offer.

If you spend LOTS on say Petrol every month then a Cashback card could be a no-brainer. If you don't spend enough to really warrant a cashback card (and have a good savings strategy in place already) then a 0% card for as long as you can possibly get (and throwing as much of your spending onto it as you can, including chewing gum at Tesco etc) means you will quickly build up a savings pot - essentially containing the Credit Card Provider's money - which you earn 'free' interest on.

When the time comes, empty the pot onto the card and repeat.