First credit card, 0 credit rating, currently on career break..

justpassingthrough24

Hi all, I've had a read through MSE's credit card advice pages and I have a couple of questions.. I'm hoping to apply for my first credit card (bit late in the game) and hoping for a travel credit card as I'll be travelling a lot this year, but also a card that I'll be able to use here at home and build up my credit rating which is my main aim.

I know ideally we shouldn't be applying for credit cards when we are on a career break - I'm currently taking one year out of work to do locum work and travel, but still will be earning a similar amount to what I earnt last year. But when I fill in eligibility calculators online it says I have a 10-60% chance of being accepted for a barclaycard travel card, and this figure doesn't change when I increase or decrease my annual income or put myself as part time/full time/self employed. I thought I was pretty solid otherwise from a credit point of view, what exactly are they looking for? (I get a 70% chance of success if I apply for the initial barclaycard, but ideally I want one I can use while I'm abroad).

Also, would people recommended barclaycard travel or the halifax clarity card? I saw this paragraph on the website re the clarity card: "However, we've ranked this card below the Barclaycard above as cash withdrawals incur interest even if you pay off the card in full - this works out about £1.50/month for each £100 withdrawn (if you get the 18.9% representivite APR)." - does this mean you'll always end up paying interest even if you meet payments in full? Because in that case I don't see how this can be anywhere near the barclaycard one if you always end up losing money?

Any advice would be greatly appreciated, thank you!

[Deleted User]

You'll struggle to get either of the travel card options, as you have such a thin file.

Try one application, but if declined, settle for something lower tier.

StopIt

For cash withdrawals on that card, you are always charged interest from the moment you withdraw cash until it is paid off.


For purchases, you do not pay interest if you pay the balance off at the statement due date.


What does the Barclaycard charge for cash withdrawals, and when?

justpassingthrough24

Because of my low chance of acceptance am I better off going for a different card?

I have an 80% chance of being accepted for the amex platinum everyday, but there's no way I can spend up to £3000 a year on it and it sounds like there's not much benefit unless you're spending huge amounts?

This may seem like a silly question but while abroad, can I book things online in GBP with an amex card, like hotels etc? That's the only way I can see myself spending enough on it. Especially in the first 3 months to make the most of the 5% cashback.

What does the Barclaycard charge for cash withdrawals, and when?

"And if you pay off your balance in full each month, you won't be charged interest on overseas cash you withdraw, unlike most cards, incl Halifax below, which charges daily interest on cash until it’s paid off"

[Deleted User]

You'll book things in the currency they're sold in. So if the hotel is priced in Euros, you'll pay in Euros.

Where given a choice of conversion (eg at ATMs), always opt to pay in the local currency, not have it converted to sterling.

Candyapple

justpassingthrough24 wrote: »

Hi all, I've had a read through MSE's credit card advice pages and I have a couple of questions.. I'm hoping to apply for my first credit card (bit late in the game) and hoping for a travel credit card as I'll be travelling a lot this year, but also a card that I'll be able to use here at home and build up my credit rating which is my main aim.

I know ideally we shouldn't be applying for credit cards when we are on a career break - I'm currently taking one year out of work to do locum work and travel, but still will be earning a similar amount to what I earnt last year. But when I fill in eligibility calculators online it says I have a 10-60% chance of being accepted for a barclaycard travel card, and this figure doesn't change when I increase or decrease my annual income or put myself as part time/full time/self employed. I thought I was pretty solid otherwise from a credit point of view, what exactly are they looking for? (I get a 70% chance of success if I apply for the initial barclaycard, but ideally I want one I can use while I'm abroad).

Also, would people recommended barclaycard travel or the halifax clarity card? I saw this paragraph on the website re the clarity card: "However, we've ranked this card below the Barclaycard above as cash withdrawals incur interest even if you pay off the card in full - this works out about £1.50/month for each £100 withdrawn (if you get the 18.9% representivite APR)." - does this mean you'll always end up paying interest even if you meet payments in full? Because in that case I don't see how this can be anywhere near the barclaycard one if you always end up losing money?

Any advice would be greatly appreciated, thank you!

Will you be employed during your year out?

If not, who were you planning to put down as your employer on the credit card application form?

justpassingthrough24

I'm steering away from travel cards now, and thinking either the barclaycard rewards or the barclaycard initial - for some reason I have an 80% chance of being accepted for the rewards but 70% for the initial even though this is the card recommended for those with no credit history. Which one is best for someone like me?

I've been advised to stay away from amex until I've got at least some credit history, is this a good idea?

Candyapple wrote: »

Will you be employed during your year out?

If not, who were you planning to put down as your employer on the credit card application form?

I'm still working for my old employer but just doing locum shifts when they become available, I would have put them down as my employer.

WillyWonga

Go for the initial, count yourself as a newcomer to the credit card market. Apply, build up a history over a year and look at another card.

Stop deliberating, apply now. Apply during working hours as online application more likely to get instant response.

Good luck!!!!

djpailo

The basic nationwide credit card allows you:

"A commission-free allowance to use abroad, which accumulates each time you buy something in pounds sterling."

http://www.nationwide.co.uk/products/credit-cards/ncc/features-and-benefits#tab:Featuresandbenefits

eDicky

Without a 'travel' credit card, you can still avoid overseas fees and loaded exchange rates by using prepaid cards, Monzo, Loot or Revolut. No credit checks. Also Starling Bank. Take more than one, and your new credit card as further backup.

Vortigern

Aqua Reward Mastercard seems to be the recommended travel card for those with a limited credit history.