First credit card 16 July 2018 at 3:07PM in Credit Cards 6 replies 701 views

BMTH

I'm going away travelling end of next month to Australia and been advised to have a credit card handy incase of deposits on vehicles etc.

I've no problem with taking one out but I don't even know where to start. I'm 26 and gone through life so far without one so the interest rates, how they actually work and which one is right for me has left me puzzled.

zx81

If you have a thin file, then it's probably more a question of what you can get, rather than getting the best one.

Try an eligibility checker.

If you manage to get one, you use it and clear it in full each month when you get the statement. That way you pay no interest and APRs aren't a factor.

Using one well will then build a credit history so you can get a better one with things such as no foreign exchange fees. But anything will do as a starter and better late than never.

BMTH

zx81 wrote: »

If you have a thin file, then it's probably more a question of what you can get, rather than getting the best one.

Try an eligibility checker.

If you manage to get one, you use it and clear it in full each month when you get the statement. That way you pay no interest and APRs aren't a factor.

Using one well will then build a credit history so you can get a better one with things such as no foreign exchange fees. But anything will do as a starter and better late than never.

Hi,

I ended up taking out a mortgage when I was 21 (Help to buy - that's a different story and god knows how I managed to get it with no credit history) so I'm wondering if that's gave me a good rating? FWIW, I don't have a mortgage anymore, I'm back home.

zx81

You don't have a rating at all. Just credit history that lenders base their decisions on. Whether you have a strong enough history is impossible to
say at the moment.

Try the eligibility check and then an application - two at most.

eDicky

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

You can check your eligibility. Starling Bank, Monzo, Revolut or Loot.io in addition, don't rely on only one source of funds when traveling.

BMTH

Am I choosing the travel cards when checking eligibility?

eDicky

The eligibility checker is for credit cards. It's not needed for the other cards as there's no credit check (without applying for overdraft facility with Starling or Monzo).