Rob E
Member
Registered: 1st Jan 06
Location: Madeley, Stafford....I want to live back in Wales!
User status: Offline
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Evening folks,
I'm after some advice for a credit card.
I'm now 27 and have never had one (that I have used) and with looking to buy a house in 12-18 months time I want to try and improve my credit score to help with mortgage applications. HSBC gave me a card when I was 18 with a £500 limit but back then knowing how easily I was parted with my money I chose not to use it at all because I could see the inevitable happening! It's visible on my credit report but also shows I never used it.
SO, does anyone have any recommendations at to what companies I should look to apply with/good for first time users? I've had a quick look through moneysupermarket.com and lots of cards come back with 9/10 chance of approval based on my personal info but thats where I get confused  I'm not clued up on all jargon for APR rates and balance transfers etc and don't want to get stung. Initially I just plan to pay for regular purchases which I know I can pay off in full a month like my fuel bill.
[Edited on 11-03-2013 by Rob E]
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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You tend to get rates for three things:
Purchases (go to shop, choose product, hand over card as payment)
Balance Transfer (moves debt from one card to another)
Cash Transfer (moving cash into a current account to spend)
Typically you'll get stung on Cash Transfers but good promotions (0% interest for X months) on Purchases and Balance Transfers.
Balance transfers often include a % fee, so if you move £2k of debt with a 5% fee - the balance on the destination card will be £2100.
If you're paying off within the same month you spend, rates will be largely irrelevant.
I've never paid a penny interest on a credit card, and I've probably spent about £10k on them in the last three years. I simply make my purchases, make the minimum payment (or more) each month and if I've not paid off the balance when my interest free period ends, I simply transfer the remaining balance onto a new card which offers 0% on balance transfers.... though I've only needed to do this once.
Lotus Elise 111R
Impreza WRX STi
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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I would maybe take a look at the Santander card if you're just paying for fuel/regular shops such as food - as they offer cashback on these items, but don't offer a 0% period.
It's basically a card designed for credit rating and little bits of cashback as a reward.
Lotus Elise 111R
Impreza WRX STi
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Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
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Have you actually got your credit score?
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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I just used to buy my insurance on it and pay off over a few months when I first got them. I suppose you could start using it for petrol or food and pay off at the end of the month.
Corsa 2.0 16v Vegas - Sold
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Rob E
Member
Registered: 1st Jan 06
Location: Madeley, Stafford....I want to live back in Wales!
User status: Offline
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Thanks for that, I'm currently waiting for my experian.co.uk pin number to arrive in the post so I can see what my actual credit score currently is. At the moment all I can see is the arrow pointing at "excellent" but I cant see the actual score until the pin arrives. I'm guessing this will have an impact on what kind of cards I should be considering?
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CORSA NUT
Member
Registered: 3rd Aug 01
Location: Wirral
User status: Offline
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Just paid our credit card off for the 6th time!
Never again. Fucking useless with them
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IvIarkgraham
Premium Member
Registered: 27th Mar 04
Location: Ellesmere Port, Cheshire
User status: Offline
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i ran up debt when i bought my house with overdrafts and credit cards
not much but enough! never again! I am sensible with my credit card now.
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John
Member
Registered: 30th Jun 03
User status: Offline
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House Day are quite good at this.
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Rob E
Member
Registered: 1st Jan 06
Location: Madeley, Stafford....I want to live back in Wales!
User status: Offline
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This has been my concern for years but now i'm financially in a position to consider one and I'm finally able to resist my spending urges I could do with trying to improve my credit rating
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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tesco clubcard is a good starter card to get.
decent enough credit limit, good 0% offer and easy to repay using their online banking service.
when i got my first credit card, i didn't understand it and ended up losing the 0% offer and had to pay a £12.50 late fee.
after that, i made sure i understood everything and since then, i've spent about 8k on cards without paying a penny interest. (approx 100 quid balance transfer fee's).
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Generation
Member
Registered: 7th Jul 09
Location: Essex
User status: Offline
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Tesco, are a good shout.
Can earn clubcard points, which are then doubled at certain stores.
Woman at work, paid for her whole kitchen and bathroom to be tiled via Topps Tiles, which she paid for via clubcard points
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Rob E
Member
Registered: 1st Jan 06
Location: Madeley, Stafford....I want to live back in Wales!
User status: Offline
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Thanks guys, I'll have a look at what tesco have to offer
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Graeme
Premium Member
Registered: 26th Jul 04
Location: Northampton
User status: Offline
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Go to money saving expert site. Great for comparing all things. Shows best for balance transfer and longest 0% etc.
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Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
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I've only recently had one too. I used Vanquis bank for 6 months as they even accept tramps. Since I closed it i've used HSBC. Only put stuff like Car Insurance on in a single payment, then just pay it off as and when.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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i just opened a natwest credit card to transfer a balance from a barclaycard.
you can see how people get into debt as they offered me a £10600 credit limit straight away 
i also have the barclaycard with an £8500 limit, a halifax one with £3000 limit and tesco one with £3000 limit
banks are mad.
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Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
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Interest rate on £500 to them is fuck all. Interast rate on £3000 is worth doing.
Probably their thinking anyway
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Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
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Also a 10k limit straight away is mental I got offered £1000 and they've been upping it every few months. Think its £2500ish now.
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Rob E
Member
Registered: 1st Jan 06
Location: Madeley, Stafford....I want to live back in Wales!
User status: Offline
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£10600 Anything upto £1000 would be fine for my needs
What were the rates like with Vanquis like Alex? They seemed to be pretty steep from my initial research.
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Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
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Awful iirc, but paid within the month when I bought stuff, so not sure if I got raped or not, don't think I did. I was declined with Tesco initially, so used them for 6 months to built up a credit card rating. All green and then bank accepted me 6-7 months later. Happy days.
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Rob E
Member
Registered: 1st Jan 06
Location: Madeley, Stafford....I want to live back in Wales!
User status: Offline
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Finally seen my credit score in full this evening and everything is marked as excellent with a couple of things marked as good. May try with Tesco now and hopefully avoid bum rape from Vanquis all together.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Have a look at Barclaycard. It often has good rates and the online banking element is fantastic.
Virgin is a bit shite for usability online BUT they give fairly decent, and frequent 0% rates for balance transfers or transfers to current accounts.
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noshua
Member
Registered: 19th Nov 08
User status: Offline
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If you do an Experian credit check, you'll see that if you take a credit card out it stays on your file as a "negative" mark for 12 months (was told this by one of their advisor's). It goes as a negative mark as the amount of credit you currently have is seen as a risk by lenders.
CBA to read through all the thread but I was a student for 3 years and got accepted fine for a Tesco credit card. Interest free for 16 months as well, just make sure you pay the minimum each month (and ensure it's all paid off by time the interest free period runs out) otherwise you'll probably lose the interest free period. Minimum payment is £25/month or something silly like 2%, whichever is greater. Setup a direct debit for the minimum and then set another up for X amount each month to ensure it's cleared.
Easy stuff.
I use mine as my main "account" everywhere possible, and pay it off in full each month, one for the credit 'boost' and two for the clubcard points.
EDIT: It's easy to get sucked into them and spend your money elsewhere, just make sure anything you spend on it you can afford, be it by splitting the payments over the interest free period or paying it off straight away. It's all common sense really.
[Edited on 12-03-2013 by noshua]
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taylorboosh
Member
Registered: 3rd Apr 07
User status: Offline
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quote:
Originally posted by Kyle T
Cash Transfer (moving cash into a current account to
Neither natwest or halifax would let me pay to a bank account (not even my own) from a credit card.... Apparently illegal to gain cash/interest from credit... However its not illegal to withdraw cash at a machine then re deposit it.
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John
Member
Registered: 30th Jun 03
User status: Offline
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Just need a card that allows super balance transfers for that. It's not illegal to move credit about
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