Most appropriate credit card

manamaga2512

Hi all, I'm looking to get a credit card. I plan to use it just to pay for fuel in my car (which I normally do monthly) and then pay it straight off. I have a really good credit score but the only thing I have against me is that I don't have a credit card. I've never had one before so do I go for a rewards car or just a basic one to make purchases? There's so many to choose from, most of which I have been pre-approved for, but I don't know which would be most suitable.
Any advice would be much appreciated :-)

blue.peter

1. If it's to be your first credit card, get a Visa or Mastercard, not American Express. You'll find that Visa and Mastercard are more widely accepted than AmEx. Having said that, the gap does seem to be narrowing over time, and different people have different experiences.

2. Are there any that give you benefits (e.g., cashback, Nectar points etc.) that would be helpful to you? If so, I'd be inclined to apply for one of these. The perks might not be great, but they'll be better than nothing.

3. Forget your credit score: it doesn't mean anything. It's your credit history that lenders will look at.

4. Take pre-approval with a pinch of salt: you'll find anecdotes on this forum that suggest that such promises aren't worth a lot.

5. You might find that the bank with which you have your main account is a good one to try - they should know you better than others.

6. The mainstream banks tend, in my limited experience, to give more generous credit limits than the niche players.

manamaga2512

Thanks for that. Any cashback or rewards would be just an added bonus to be honest. I have good credit history too. Sadly my bank doesn't do credit cards (yet), I use Starling Bank.
I guess the other question would be, does having a credit card work favourably for you in terms of any future lending? If it doesn't then I probably don't even need one

daivid

manamaga2512 said:

Thanks for that. Any cashback or rewards would be just an added bonus to be honest. I have good credit history too. Sadly my bank doesn't do credit cards (yet), I use Starling Bank.
I guess the other question would be, does having a credit card work favourably for you in terms of any future lending? If it doesn't then I probably don't even need one

It can do, especially if well managed as you plan to. Check your eligibility for rewards cards, having not had a card before you may not get any but if you can once set up the rewards are an effortless bonus. If you shop at Sainsbury's the nectar rewards cards are particularly good. If you buy your petrol from a supermarket petrol station Amex will be accepted so a good option if you can get it as their rewards offers are better.

redrosebud

I'd agree with blue.peter that what you should be looking for is something with rewards/cashback. Yes having and responsibly using a credit card does work favourably for you in terms of future lending; it will make you look more attractive to lenders.

For pre-approval offers, I've always found both Credit Karma and Clearscore reliable, others like MSE Credit Club and Experian less so, but remember it's never an absolute guarantee.

If you're seeing a lot of "pre-approved" it sounds like you can probably steer clear of the sub-prime market (Capital One/Ocean/Post Office, Aqua/Fluid/Marbles, Zopa, Vanquis, etc.). 

What I would do in your situation is make a list of the ones that are coming up "pre-approved" and do a bit of research to find out what suits you best. The search bar on this forum is good for finding out about people's experiences (i.e. with rewards, starting credit limits, credit limit increases over time, etc.). Rewards can vary greatly and what will work best for you will depend on your own circumstances and spending habits, for example Virgin have very specific but generous cashback offers, which works really well if you shop at those specific retailers, but is useless if you don't, whereas Tesco, Sainsburys etc. give "points" on all purchases that, while less generous as a percentage of spending than the more niche rewards, are accrued no matter where you shop.

What you're planning to do (use it for a regular purchase and pay it off in full) is really sensible credit card usage and should be a good boost to your credit report should you ever find yourself looking for more "serious" lending in the future.

Good luck!

maman

I have two credit cards. One is Sainsburys as I do a fair bit of shopping there and it gives Nectar points. This would be especially useful if you had a Sainsburys with a petrol station local to you as the fuel is often a good price too. 

I also have a Barclaycard, mainly for using when travelling abroad. Cards like this are a good idea if you take foreign holidays. 

WillPS

maman said:

I have two credit cards. One is Sainsburys as I do a fair bit of shopping there and it gives Nectar points. This would be especially useful if you had a Sainsburys with a petrol station local to you as the fuel is often a good price too. 

I also have a Barclaycard, mainly for using when travelling abroad. Cards like this are a good idea if you take foreign holidays. 

You'd get a better rate with a Nectar Amex.

surreysaver

When you say 'pay it straight off', do you literally mean that? Because what you should do is wait for the statement before paying it off, otherwise it will just be a permanent zero balance and will look like you're not using it, and therefore will not build a credit history.
Set up a direct debit to pay the full amount to avoid any errors.

manamaga2512

surreysaver said:

When you say 'pay it straight off', do you literally mean that? Because what you should do is wait for the statement before paying it off, otherwise it will just be a permanent zero balance and will look like you're not using it, and therefore will not build a credit history.
Set up a direct debit to pay the full amount to avoid any errors.

Aaah, good point. I would have just paid it

surreysaver

manamaga2512 said:

surreysaver said:

When you say 'pay it straight off', do you literally mean that? Because what you should do is wait for the statement before paying it off, otherwise it will just be a permanent zero balance and will look like you're not using it, and therefore will not build a credit history.
Set up a direct debit to pay the full amount to avoid any errors.

Aaah, good point. I would have just paid it

This is where credit card novices make their errors. When you make a payment, it goes towards the previous statement.
If, say, you got a credit card and spent £100, then immediately paid £100, a few weeks later you'd get a statement. Fair enough, it would be zero, but say you then spent £50 and paid £50.
You would then be charged interest on £50, because that £50 you've paid went towards the £100 you spent the previous month.
Don't pay anything until you get a bill, same as you do in a restaurant or anywhere else