Need a Credit Card for Travelling to USA

St.Jimmy

Hello!

On the 28th July until the 11th August this year I am travelling to California, USA and renting a car to travel around. For payment method of the rental car it says "Cash and Debit cards are not accepted" and:

"The main driver must be in possession of a Credit Card in their own name when picking up the car. The Card must have enough available funds to cover the excess / deposit amount (which will be blocked on the Card for the duration of the rental). The Card will also be required to pay for local fees, extra equipment and anything purchased additionally at the car hire counter.
This company will not accept prepaid, recharge or virtual credit cards – or any card on which the relevant characters are not raised (‘embossed’)"

For this reason, I need a credit card. I've never had one in my life and nor does any of my family members. I have three current accounts, one with Santander, one with TSB, and one with Nationwide and each account have a healthy balance so I've never seen the need for one (I also have a Help to Buy ISA with Halifax if at all relevant).

I have thought about getting one to build my credit score as I'm currently 23, living at home, and have never borrowed any money before. So, as I'm going to need to get one, does anyone have any recommendations on what I should get? I don't really know that much about them and don't want it to end up costing me money!

Thanks

Mr_Goodkat

As a Nationwide Current Account holder the Nationwide Select would be a good choice as it gives 0.5% cash back on UK transactions but more importantly it does not load foreign transactions you get the visa exchange rate on the day.

Given your age and lack of credit you might find the above not easy to get but hopefully your previous account conduct and healthy balance with Nationwide will mitigate some of that.

Santander Zero may also be an option given your account history with them as again no loading of foreign transactions.

Try one of the above if not successful then a credit builder card may be more attainable - use a eligibility checker and apply for one that you have a good chance of getting Aqua do a card without foreign loading I believe so that could be an option too.

Having a credit card and using it wisely i.e. use it to pay for items and then settle in full each month ideally by direct debit so you don't forget will help show you can manage credit and help in the future with mortgages, loans etc

PeacefulWaters

Santander Zero. Halifax Clarity. Creation Everyday.

Ensure as an under 25 that you are insured for the hire car!

Make sure you have decent travel insurance in place. While you'll likely have a nil excess a £3 a day excess insurance policy also tends to cover other perils of driving on the west coast.

Highway 1. Yosemite. Death Valley. Wonderful!

St.Jimmy

Thank you for your helpful and quick replies, much appreciated!

I think I may go for the Santander Zero credit card as they are my main account and I have done an eligibility check and got a 90% chance of approval on this card.

Do you think I should apply for this now/soon or wait until closer to the time of the holiday?

Also, I was reading about paying it off in full each money via direct debit. If I set this up, will it just take the correct amount each month automatically? So say I spend £250 on the card will it take that much automatically or will it take a predetermined amount (so say I setup a direct debit of £200 but spend £250 it will only pay off £200?)? Hope that makes sense!

Thanks for the advice about the car - I think insurance is included in the rental but I will double check this!

I still need to sort out travel insurance but I'll make sure I don't just go for the cheapest, most basic, option!

Thank you

Ebe_Scrooge

St.Jimmy wrote: »

Do you think I should apply for this now/soon or wait until closer to the time of the holiday? Apply now - that way, any unforeseen delays shouldn't impact you. Bear in mind, you're not guaranteed to be accepted for a card, or you may be given a limit that is too low for your needs.

Also, I was reading about paying it off in full each money via direct debit. If I set this up, will it just take the correct amount each month automatically? So say I spend £250 on the card will it take that much automatically or will it take a predetermined amount (so say I setup a direct debit of £200 but spend £250 it will only pay off £200?)? Hope that makes sense! A direct debit can usually be set to pay off either the minimum payment, a regular amount, or the full balance - you'll be given the option when you set it up. Just make sure it's set up for the full balance. It would be a good idea to get the card now, set up the DD, make a few purchases on the card, just to ensure that the DD is working correctly.

My thoughts above. One other thing - let your card company know that you'll be using the card abroad, and what dates you'll be there. This should remove the risk of them blocking it due to "unusual transactions".

MallyGirl

When you set up the direct debit one of the options will be 'pay in full'. It will then take the full amount on the statement and you will pay no interest

tyllwyd

If you are going to apply for a card, you may as well do it now since it doesn't cost you any money unless you have a balance on the card and it gives you time to sort things out if there is a problem.


But don't keep the card in a drawer and just try to use it for the first time to hire a car in the US - that's almost certain to give you problems with the card provider querying that the transaction is fraud. Get the card, use it for a few small purchases in the UK and pay them off in full, and check with the card provider whether you need to notify them that the card is going to be used abroad.

St.Jimmy

Thanks everyone for all your help and advice! I've signed up and been approved for the Santander Zero Credit Card with a £2,400 credit and I've setup the direct debit to pay it off in full

Also noticed that you can notify them online when you are going to be abroad and where so I've done that now for both the credit card and my Santander debit card.

gt94sss2

As you're going overseas, I advise that you apply for a second credit card as well - just in case. It has been known for banks to block credit cards when their customers are overseas even if they know in advance that you are going abroad and where..

Yawn

gt94sss2 wrote: »

As you're going overseas, I advise that you apply for a second credit card as well - just in case. It has been known for banks to block credit cards when their customers are overseas even if they know in advance that you are going abroad and where..

Yes, I once encountered that problem when I was in the US. It wasn't pleasant, especially given how expensive the States are.

As for the car hire, have you car rental excess insurance? It is likely to be cheaper than whatever the rental company will be charging.

St.Jimmy

Thanks for the replies. Just wondering, if I applied for another credit card so soon wouldn't that effect my credit rating negatively?

Yawn wrote: »

As for the car hire, have you car rental excess insurance? It is likely to be cheaper than whatever the rental company will be charging.

Thanks, I'll have a look at this. Where is best to look for this insurance?