Where to get my first credit card

okigen

Hi guys,

I am thinking of getting a credit card to build some credit history and utilise my work trips. I have been in the UK for 3 years now, with no debt and a good income. A friend recommended getting an offer from a shop or hotel rather than applying at banks as that will be easier and the benefits are often more generous. Do you have any suggestion on this?

Many thanks,
Oki

20aday

Hello Oki,

I'd suggest trying the MSE Soft Search tool here to see your possible chances of acceptance with a sub-prime lender (i.e. Capital One): https://creditcards.moneysavingexpert.com/?bad-credit&_ga=1.44938915.685896923.1460576451

I'd almost recommend discussing your options with your own bank as they generally have an idea of how well your maintain your current account.

okigen

Thanks a lot 20aday, sorry for a stupid question but what is a subprime lender?

Cheers,
Oki

KxMx

It means generally higher interest rate (if not paid off in full every month) and little or no extras like special offers, rewards, interest free periods beyond 56 days.

They are ideal starter cards to build your history. First timers don't often get the good stuff so your friend wasn't really right.

okigen

Following up on this point, my main purpose of building up credit history is to apply for a mortgage later on. In this case is it worth getting a card with my frequent bank? To be honest after 3 years with Lloyds I'm not impressed, but they are still my main current account.

Huskyrunner

it depends really how good/bad your credit history is?

Have a look at the link 20 a day posted

Barclaycard initial maybe one too try

20aday

Lloyds Bank usually update their feed from the CRAs around the middle of each month (from what they told me when I enquired about a loan with them last year).

They have their own internal credit rating (something 1 to 9 with 1 being the 'best'). Might be worth popping into your local branch and enquiring about their Classic Credit Card:

http://www.lloydsbank.com/credit-cards/landing-pages/classic-card.asp

The APR is a rep. 25.95% (variable) and may be higher depending on your circumstances but has three months interest free on spending (from date of account opening).

In time it's possible to open more than one credit card with them so when you've a bit of history behind you you'd be able to look at one of their other cards.