Getting my first credit card - advice appreciated!

[Brigadier]

Hello all,

Due to potentially changing careers, in need of my first credit card. Overnights, fuel, subsistence etc.
Therefore, in need of some advice / pitfalls / tips, etc.

Despite my being the wrong side of forty, I've never had a credit card before. Ergo, I probably have no "credit history"?
Only loan I've had was my (university) student loan, which was paid off, in the nineties.
Have two mortgages (since the mid-nineties), which I'm still trundling through, and (fingers crossed!) haven't missed a payment on (actually, have built up a bit of an overpayment fund, so that is good for something, if not the credit card itself).

Obviously, I'd like the cheapest / least onerous card, with a decent-size limit (I'd guess that north of £1500 would be necessary). Ideally, I wouldn't have one at all, but as I said, circumstances change.


TIA

 

[ajstoneservices]

If you're going to get one make sure you pay it off each month otherwise it will cost you. Tesco card will give you points that are often doubled up at Christmas so you can treat yourself to a Samsung notepad or similar.

 

[Brigadier]

Pay off entirely, every month - got it.

 

[ajstoneservices]

Yes that's what I meant

 

[alan333]

Some give you cashback

 

[Doug99]

Also set up a direct debit to automatically pay the 'monthly minimum repayment fee'. This will ensure you don't miss any payments and help to build your credit rating.

To get a good credit rating, the agencies check that you don't miss any monthly repayments. You don't actually need to pay off the balance each month, but is always wise to do so to avoid paying interest..

 

[JohnD]

Have a look on here
http://www.moneysavingexpert.com/cr...-v5&utm_campaign=nt-cardsheader&utm_content=1

Make sure you are on the electoral roll, and that utility bills are on your name. If you have no footprint you may get turned down, and the refusal will be a black mark.

I've heard it said that it's easier to get a store card with a low limit if you have no history. Do that, make the payments religiously for a few months, every "on-time" payment is a plus mark on your file.

I agree about setting up a direct debit for the minimum amount, even though you may choose to pay off the balance by manual transfer by the due date, to avoid interest charges.

If you've been with your bank or mortgage company for years, and have a good record, they may be more amenable to issuing your first card.

I expect you're used to online banking. You can do the same with credit card accounts and download statements, keep an eye on balances and due dates.

 

[Brigadier]

My intention was always to clear the full balance each month, but not considered that (interest aside), only paying the minimum repayment would also not affect the credit score.
Better to clear the decks each month, I'd reckon, but thanks for the heads-up in any instance

 

[JohnD]

They prefer you to pay the minimum, because they like the idea that they'll profit from you paying interest charges on the remaining balance. It could be quite a small amount. Store cards though are notorious for high interest rates. Some, like Debenhams, may give a 10% discount on shop or online purchases, presumably they make it back in increased profits.

They keep an eye out for "rate tarts" who take advantage of "new customer" offers, e.g. interest free periods, and often turn them down.

 

[Brigadier]

Have a look on here
http://www.moneysavingexpert.com/cr...-v5&utm_campaign=nt-cardsheader&utm_content=1

Make sure you are on the electoral roll, and that utility bills are on your name. If you have no footprint you may get turned down, and the refusal will be a black mark.

I've heard it said that it's easier to get a store card with a low limit if you have no history. Do that, make the payments religiously for a few months, every "on-time" payment is a plus mark on your file.

I agree about setting up a direct debit for the minimum amount, even though you may choose to pay off the balance by manual transfer by the due date, to avoid interest charges.

If you've been with your bank or mortgage company for years, and have a good record, they may be more amenable to issuing your first card.

I expect you're used to online banking. You can do the same with credit card accounts and download statements, keep an eye on balances and due dates.

Blast! Utilities are all in SWMBO's name (I give her the bunce!) Only thing in my name is the mortgage, and insurance (which is probably not classed as credit anyway).
Yes - on "the Roll".

Might be a case of getting pretty much any card, and being a good boy - build it up that way.....

I'd be happy without, tbh, but appears to be a necessary evil, in some occupations.....

 

[JohnD]

get a mobile phone in your own name, at the least. But a household utility or landline bill is better.

 

[blightymam]

A mobile phone doesn't help that much when it comes to lenders considering you as although it shows that you are able to pay a phone every month, it's not actually a loan. Much more weight is given to things like overdrafts or your mortgage.
I think having the mortgage in your name is the best bet and asking your bank that you have the mortgage with. There also used to be a credit card company called capital one - I don't know if it's still going but it was always a good one to get to build up your credit history.

One thing tho, every application you make for a credit card is logged and if it fails it's a black mark against you. Unfairly too I think.

 

[Doug99]

One thing tho, every application you make for a credit card is logged and if it fails it's a black mark against you. Unfairly too I think.

Multiple applications to several companies are also frowned upon and will result in a black mark on your credit score. Choose one company carefully depending on your circumstances and submit just the one application.