Making sense of credit card options

RichardDuck

Hi all,

I'm in the process of saving a deposit for my first property, and expect to be in a position to buy this time next year. I have a limited credit history, so would like to take out a credit card to build up my credit score by using the card for monthly expenses such as shopping and petrol, paying off in full each month.

Looking at the guides available on MSE, it seems the advice for building credit suggests applying for a 'bad-credit card'. However, my profile on the credit club indicates that I'd be likely to be accepted for a 0% credit card.

My question is whether there's a difference between the options available in regards to how quickly they will build up my credit rating. Would the bad-credit card be the quickest option or is there really no difference?

As a third option, I currently have an account with Natwest and could explore taking a card out with them, although I'm not sure on how likely I am to be accepted, even though I don't have any negative marks on my record.

Any guidance you can provide to give me a steer would be greatly appreciated.

D3xt3r5L4b

Use NatWest’s eligibility checker.
You want to build your credit history not the make believe score or rating. 

RichardDuck

Thanks for your response.

Sadly it's saying I'm not likely to be accepted. Not entirely sure why, as I seem to meet their requirements (18+ UK resident earning over £10k).

cymruchris

It doesn’t really matter which card you get - as lenders will only see you have a credit card - and that your balance was Y and your payment was Z - the important thing is that you get a card you’re eligible for, spend on it, pay it back in full every month AFTER the statement has been produced, preferably by direct debit. (Some people use it for petrol - others for supermarket shopping) try the eligibility checkers to see which you’re most likely to get accepted for. Bear in mind that if any say 95 percent chance - it’s likely you’ll get it - but a slim possibility you won’t. It might be good to try with the likes of Vanquis aqua or capital one to start with (all have eligibility checkers) and don’t apply for more than one at a time. 👍

RichardDuck

Hi again, and thank you for your responses. I'm just popping back in with an additional question.

My current flatmate is due to move out in the next month or two and I'll be staying in our 2 bed property on my own. This will of course increase my outgoings on rent/bills when that happens, so my question is whether it's worth holding off on the application until then, or just declaring when that change happens?

jay1804

Personally I would apply now are answer the questions truthfully, most credit application ask you if your circumstances might change in the near future.

jbrassy

If you want a credit card to build your credit history and plan to pay it off in full every month, I would personally get a cashback or rewards credit card. At least this way you get something back for buying stuff. For example, the American Express Platinum cashback card pays 1% cashback on all purchases. 

The credit cards for people with bad or no credit history are fine, but you don't get anything back from them. I would do eligibility checks on some reward cards to see what results you get. If it looks unlikely you'll get one of those, then get a credit card designed for people with a bad or limited credit history.

Don't forget, just because you haven't had a credit card, doesn't mean you don't have any credit history. Stuff like mobile phone contracts, overdrafts, and household bills all contribute to this.

Good luck in your pursuit of a credit card and saving for a house!