First time CC, which one?

modified_2

Hi guys, I am 20 years old and I've never had a credit card. I only have a Debit account and use that for all my incomings and outgoings.

I figured it would be a good idea to get a credit card to use for buying petrol and essentials when I often haven't got any cash on me, I also thought this may help my credit rating for the future?

To be honest I have no idea where to start and don't entirely understand how credit cards work. I wondered if you guys could help? Suggest which cards I should apply for?

Many thanks.

clio

You will probably only get offered a high apr rate card due to your credit history being low.
so your limited in the cards you get, but maybes in 1 years time and after looking after your
1st credit card account, you'll get a better one. credit cards work something like this...

they give you a limit = dont ever go over it.
they want payment every month = allways pay on time.
they charge interest = so if you don't pay off your balance interest is applied
at what ever rate you get on the card ie: something like 2% per month.
doesn't sound a lot but as the balance rises up to your credit limit the 2% a month becomes a lot.
miss any payments or are late with any payments = you will get charged a fee and it wont look good
on your credit file.

jasonjuicer

She's right. I think that getting only one credit card is a good idea as long as you follow what she just said.

modified_2

Thanks guys! I'm still not sure which one I can go for though?

clio

Vanquis, Aqua and Capital 1 credit builder card are the 3 that are popular.

Toastie

I got the capital one card recently at 34.9% interest. My limit was £100 only 1/50 of my income. I hope it goes up soon (4th payment)

BenL

When i started I got the Capital One card.

The limit started about £500 then started moving up after a few months of good behaviour.

You are doing the right thing aiming low to start with.

You don't want to be getting knocked back by going for gold/platinum cards (not that they really mean anything)