First time credit card

Sagar_Fuzz

Hello there,

My partner and myself have never had a credit card, but want to buy a house in about 9 months time and were advised we would need to build up our credit rating. I travel a lot for work, so it would be quite useful for that, but i do not want to lose money by having a credit card. I doubt I will be eligable for cashback cards, as they tend to go to those with long credit history, so which one should we go for? And am I right in thinking that if we pay off the balance in full each month, there will be no charges?

Thanks!

CLAPTON

Try your bank first as they already know how you manage your account.. if possible try thr personal approach.

Otherwise try Barcalycard Initial or Capaital one for first time users... they have awful APRs but if you pay in full each month you wont pay any interest.

If you do get one then
do... set up a DD for the full amount so you never pay any interest
don't use the card for any cash transactions include foreign currency or gaming websites

Sagar_Fuzz

It's the APRs that scare me! I'll try my own bank today and see if they will offer me a decent one, and make sure they can set up a DD every month.

I guess there are other advantages to having a credit card, but i really resent having to get one!

CLAPTON

Well you dont actually have to have a CC... especially for mortage applications. Mortgage companies are more interested in your earnings and the amount of deposit in relation to the price of the house and the absence of any adverse credit items.
However, I find it quite hard to book hotels or car rental without a credit card and like the convenience of paying for petrol etc without having to keep track of my bank balance. However each person is different and if you dont like the idea of them then I would suggest that you just use it once or twice a month for some smallish items... maybe petrol or something like that.

And dont left them talk you into PPI (protection insurance etc) or any extras as there expensive and not worth it.

Sagar_Fuzz

Thanks Clapton - what you have said has made me feel better because I don't really want a credit card to be honest! I travel a lot for work and find it easy to pay for everything with a DD card, and have done for years.

Also, I have just been to Halifax and even though I have my curent account with them, they refused me for a credit card as experian wouldn't clear it! I just tried to get all my credit files up, but Equifax can't 'verify' who I am without sending them millions of documents, and I am just going round and round in circles trying to prove who I am. Starnge, then, how easy it was to get my passport renewed recently!

Is credit always this frustrating?

cm233lh

I find one of the main advantages of a cc is that you get up to 60 days interest free credit - so you're spending next month's salary and you can keep this month's. This works in 2 ways:
1. When you first get your card, say you spend £500 per month regularly that you can put on the card. You won't have to pay any of that until the bill comes, by which time you'll have been paid again. So you get a one-off interest free loan of £500 to help out your cash-flow (or just stooz away if cashflow's not an issue).
2. If you travel a lot on expenses for work and claim it back the next month you'll be subsidising your employer each month until you get your expenses paid. If you pay by cc, you can let the card company subsidise your employer, leaving your cash free for your own uses.

Also, retail shopping has the cost of credit cards built in (retailers have to pay the card companies for each transaction, so they have to build that cost into their prices). So you're already paying the price of all these clever deals whenever you go shopping. I reckon you may as well get the benefits, so get a cc for the reasons above.
But it's your choice at the end of the day. Don't take anyone's word for it.