Need Help - Never had a credit card before!

TheBunting

Hi guys,

Finally getting round to getting a credit card. I am 26 and never had one before. I was scared to get one before previously incase I started abusing it and racking up massive payments. However, I have seen friends and family getting them and strictly using them for the likes of fueling their cars. I have been told it is a good way to boost credit score, which I will need when looking for my first house next year at some point. Therefore I want to get a credit card.

Now, I have absolutely no idea what to look for. Do I look for one of these 0% interest ones for upto 2 years? I am going to Croatia on holiday in 10 days and was looking to get one before then to use as an emergency when over there, then afterwards only use it to put fuel in my car and for any emergencies. Looking for some help from someone to point me in the right direction.

Thanks. :beer:

[Deleted User]

Don’t get one with the intention of boosting a make believe score.

Get one to improve your credit history.

Always pay it back in full each month after the statement is produced.

TheBunting

Thanks for your reply. I have no idea what to go for though? Theres ones that are 0% for a set amount of months then go to fairly hefty percentages. Yet there are set interest rate ones that are lower.

MovingForwards

If you are paying it off in full each month the APR doesn't matter.

Try your own bank first for a credit card as they will have their own history about how you have been conducting your finances with them.

Vortigern

TheBunting wrote: »

I have no idea what to go for though? Theres ones that are 0% for a set amount of months then go to fairly hefty percentages. Yet there are set interest rate ones that are lower.

If you've no credit history, you won't have much chance of getting a 0% card. Don't worry about that. If you pay in full by the due date, you'll pay no interest.

Try your own bank first. At least they know a little about you.

If your own bank can't offer you a card you'd have to look for a credit builder card.

TheBunting

Vortigern wrote: »

If you've no credit history, you won't have much chance of getting a 0% card. Don't worry about that. If you pay in full by the due date, you'll pay no interest.

Try your own bank first. At least they know a little about you.

If your own bank can't offer you a card you'd have to look for a credit builder card.

I have a credit history. My bank is BOS and they have already pre approved me for both a Classic and Low Rate credit card for upto £2000. I just didn't know if shopping about elsewhere is worth it but for the little use I have for it I don't think thats the case.

EveryWhere

Go for one that doesn't charge for overseas purchases. Don't go for a 0% interest card, as that will only encourage you not to pay off your debts asap. You can utilise those once you you are more comfortable with credit cards and you understand how to use them to your advantage.

So think about the Halifax Clarity(possibly first choice), Santander Zero, Barclaycard Platinum Cashback Plus(perhaps second choice), Creation Everyday...

But if you think that you might be rejected because of a limited credit history, Tandem has a card for you; https://tandem.co.uk/credit-cards

If you go for a Tandem card, you will also need a no fee for overseas transactions debit card; https://www.starlingbank.com/travel/ Useful to have in any case.

[Deleted User]

Whatever you do, if you're going on holiday in 10 days, do it NOW.

System

Go for a cashback card, if you can. If your bank offers one, so much the better.

We have just got an Asda cashback card (as Asda is our local supermarket) and we are racking up cash on that one (to be spent in Asda, of course). So, if you use a particular supermarket regularly, and they offer a cashback card, go for it.

As far as interest rates are concerned, make sure you ALWAYS pay off your card in full each month, and you won't need to worry too much about interest.

I always put credit card spending on the family spreadsheet with the rest of the household spending as if it had already been spent, so that is included in expenses as soon as it has been used, rather than as "money owing". That means that if we show a balance of £100, that is how much we actually have left to use. Hopefully that makes some sense.

katsu

How were you planning on spending money - say hotel & restaurant bills - in Croatia? A card like Halifax Clarity - and I think Santander Zero - offers fee free foreign currency purchases using the mastercard exchange rate, so you don't need to change money and can use a cashpoint if you need to as you pay only a little interest until you pay them back. Ask your bank if their cards offer that feature before selecting a card.

EveryWhere

katsu wrote: »

How were you planning on spending money - say hotel & restaurant bills - in Croatia? A card like Halifax Clarity - and I think Santander Zero - offers fee free foreign currency purchases using the mastercard exchange rate, so you don't need to change money and can use a cashpoint if you need to as you pay only a little interest until you pay them back. Ask your bank if their cards offer that feature before selecting a card.

I've already covered the fee free for foreign usage cards.
Tandem offers cashback, but charges for ATM withdrawals.