Should I get a credit card for rewards and credit rating?

Mouse14000

Hi, I consider myself very financially responsible. I have never needed or had a credit before and don't need one now as I have sufficient savings and am not planning any big purchases however I am considering applying for one, as the title states for the rewards and also for credit rating.
A friend of mine told me some credit cards give free domestic flights every year. I think she mentioned American Express. That sounds like an amazing deal and I think that would definitely be worth the annual fee of the card. Is it a good idea to apply for a credit card.

Also having a credit card and paying it off regularly would improve my credit rating which in the future would be good if I need to get a mortgage right?

[Deleted User]

Certainly a card is the best way of building a credit history.

However, you're unlikely to get one of the better ones if you haven't much experience of credit. No harm in one application, but if rejected, try something much more mainstream -eg your own bank, or a credit builder card.

snoopyginger

I'm in the same boat, I don't need one but I want one to build up my credit score for the future... should i just get one from my bank and go from there? Is there a starter guide to credit cards anywhere on this forum?

[Deleted User]

https://www.moneysavingexpert.com/eligibility/credit-cards/

Ebe_Scrooge

Using a credit card sensibly does help build a good credit history. Ignore the fictitious "score" you'll see on the CRA websites, what's important is a history of responsible borrowing and paying back on time without fail.


Use a CC for your everyday spending, don't be tempted to use it to spend more than you ordinarily would, and make sure you pay on time every month - as long as you pay in full each month you'll have no interest to pay.


Many cards offer rewards - cashback, airmiles, Tesco clubcard points, etc. Just choose the one that's most useful to you. Though do be aware that some cards charge an annual fee, which may reduce or negate the value of any rewards.


Also, if you have a limited credit history you may find it difficult to be accpted for one of the "best" cards initially. In this case you may need to apply for one of the sub-prime cards, use it to build up a history, then apply for a more mainstream card after a year or so.

Chrysalis

if no or weak credit history, try capital one classic, thats the one I got when I had a poor credit rating.

I still got the same card now with a limit of over 6k from its original £250 limit. (the limit increases were all automatic)

When you get the card, use it for food shopping etc. and pay it off in full every month, watch your credit rating skyrocket

If capital one start pumping up your limit, then its a good sign your credit is improving.

DCFC79

Yes of course a credit card will improve your score/rating but it will be a pointless task in focusing on that when lenders don't even see it.

As for the flights with the American Express card, I reckon there's a catch to it eg you earn points for every pound spent. Check the American Express website to be sure.

Saria

Hi everyone, I am in a similar position. I have always been good with money and have been saving up for a house deposit with my fianc!. However as I am from Belgium and have never had a Direct Debit set up (silly, but I didn't know I needed it), I probably don't have much of a credit history yet.

We had a chat with a mortgage broker yesterday and he said it would be a good idea to get a credit card for everyday spending (fianc! already got one a while ago for similar reasons, to build up credit history).

Would it be best to just go with one from my bank (Lloyds) as I have more of a chance of getting accepted?
I also looked at a Sainsbury's one to get the extra Nectar points when shopping, or is there a reason why I shouldn't go for that one?

[Deleted User]

Your bank would be a good place to start. If rejected by them, try something lower down - eg aqua or Vanquis.

Saria

Deleted_User wrote: »

Your bank would be a good place to start. If rejected by them, try something lower down - eg aqua or Vanquis.

Thanks, just applied for a card and it seems to have gone through. Now I just have to wait and see I guess.