My First Credit Card - which one ?

hellows

Hi. I have just finished my degree in Law with Business and I am currently working in London for a Law firm. I never had to borrow money in the past and therefore I have never applied for a credit card. But now I would like to improve (start) my credit rating so that if I need to borrow in the future (like get a batter card or a mortgage) the bank will not make to many problems.

Important is that I do not pay any fees for having it. I will not use it that often. I will repay all money on time. A card that will get me a better mortgage in the future.

I am 24 years old. London. Salary 15k-18k. Single. I live in a Rent FF accommodation. I am from Poland. Have been living in the UK for more then 5 years.

Thanks
hellows

Bokkens

The normal advice is to get a card provided by your current bank and manage that for a while to help improve your credit rating.
As you are Polish this will be the easiest way to get your first card as your UK bank can carry out the necessary checks.
There isn't one single card that would help you get a mortgage.
Your credit rating and how you manage your cards/bank accounts/savings accounts,salary,location are what helps form a credit rating how much debt /credit limit you have and how you repay that debt are the most important factors.
Visit your UK bank first.
Good luck
Read Martin's articles on credit scoring

hellows

Thank you for your help. I am currently with Natwest using the Current Plus Account. I have also a seving account, ISA and Step account. based on the above comment, which credit card should I get ?

Martinslovechild

As Bokkens has suggested, contact your existing bank (Natwest) as a starting point. As you'll be clearing the balance on a monthly basis, you won't incur any interest charges. There are no annual fees with most UK cards.

Once you've had the card a while (1 year+ ??), you might then consider looking at Egg Card or Capital One Platinum Cashback, both of which offer 1% cashback on all of your purchases. Again, there are no annual fees and providing you clear your balance every month, no interest charges. As you'll be earning 1% cashback on your purchases, you'll receive a rebate once a year equivalent to 1% of all your spending, i.e. if you spend £500 per month, you'll receive a payment of £60 after 12 months (1% of £6000).

hellows

ok. I will then get the classic from Natwest and keep it for some time. What questions can I expext when I apply for one ? AND what should I answear to get the most.
Do thay have any tricky questions ?

PS: Would you suggest that I use it once in a while or it does not make any differance to the credit rating ?

Thanks.

marksandsparksgal

They will ask you routine things, such as your employment history, where you live etc, and may even ask you (if you apply in the bank) what sort of limit you'd like. All in all I'd be honest with the questions, you don't want to end up getting yourself in trouble if you say you earn way more than you do, for example.

If you do go with Natwest, the application can be done online, and if you are accepted immediately, if you go through quidco, (www.quidco.com) they'll pay you £24 in commission.

You need to use it once a month, if the bank sees that you're not using the account, they may reduce your limit, or even close the account, especially with the current lending climate. The best thing to do is set up a direct debit so the full payment is taken on time every month, and then you won't pay any fees for forgetting to pay. And of course, don't put more on it than you can afford to pay off again!

xXx

PS I also forgot, never use it to withdraw cash, as there are VERY heavy fees for this!

hellows

whn they ask me why I want a credit card what should I say ?

Do I have to pay extra for the froud cover.

Zebedee69

Are you on the electoral role yet?.... Its the bedrock of your file so if your not on it you should think about getting on it.

hellows

I am going to Natwest to see what credit card they can offer me.
Any other resommendations befor a take one from them.
Quick help will be appreciated.

Natwest is offering this:
http://www.creditcardoffers.me.uk/natwest.html

belfastgirl23

I don't think they ever ask what you *want* a credit card for all they want to know is that you're able to pay it off.

I would say you'd be doing very well to be accepted if you aren't on the electoral register by the way ... this was my experience anyway.

Bokkens

The classic look okay with 0% on purchase for six months and BT @0% for 13 months.