First Credit Card

breathe3asy · 27 Jan 2017 at 08:24

I'm looking to apply for my first credit card to build some credit history for a mortgage.

I bank with Barclays, without being too savvy on things like this will I be OK applying for a Barclaycard and be done with it?

I can't imagine a person can go too wrong with who you go for, can you?

Different types of Barclaycard

I was looking to go for the "credit building card" seeing as though I'm trying to accomplish just that.

Clav · 27 Jan 2017 at 08:28

"Credit building card" is normally a euphemism for ridiculously high interest rates. Get a free noddle report to see what your actual credit score is and then go from there. Check out the wealth of information on www.moneysavingexpert.com.

Cleisthenes · 27 Jan 2017 at 08:29

If you don't require 0% on purchases for a while, and aren't going to be transfering a balance, then a barclaycard will be absolutely fine. Also if you're always going to pay it off at the end of the month.

I got the 'barclaycard platinum' as my first which I just use for fuel and pay off every month and it's been great. My credit rating does seem to have improved, but that's only using the experia rating which barclaycard give you free every 60 days.

uvarvu · 27 Jan 2017 at 08:31

Interest rates may not be a concern if the OP pays off in full every month. The OP may even choose one that gives rewards but in any case setting the credit limit to be the maximum you can afford to pay each month is probably a good idea. Interest becomes a moot point then.

Englander91 · 27 Jan 2017 at 08:32

If you're paying back in full every month (you should be) then it won't make much of a difference which card you get/what APR they are as you won't be paying any interest. I suppose a consideration would be how much you intend to spend on it each month, and make sure the one you get has enough credit to cover that.

For example, I have a student credit card and the exact same intention as you - building up a credit history. The max it can be is £500, but I only really need about £100/month as I only put my weekly groceries shop on it.

The other consideration would be a cashback credit card which, in effect, pays you to use it. They usually have an annual fee, so you'd need to work out how much cashback you could expect with normal spending and see if that would cover the fee.

Ultimately, however, you won't go too far wrong with the "credit building card" you've found. That would be the most straightforward way to dip your tow into the world of credit, and just set up a Direct Debit from your current account to pay it off in full each month.

Steeps · 27 Jan 2017 at 09:37

If you've not had any payment issues then I'd apply for a rewards card, especially if you've been with Barclays for a long time. Put every purchase through it that you can to build up points for freebies. For every £35 spent you get £1 back (£17.50 on fuel/transport/supermarkets) so while it isn't a lot, it still adds up to a good amount over a year.

Credit building cards are usually for those who have destroyed their credit rating with poor debt management so I'd avoid getting one of those.

Haggisman · 27 Jan 2017 at 09:47

Moneysupermarket and money saving expert both have credit card eligibility checkers where you can check your chances of being accepted for various cards before actually applying. They're obviously not perfect without doing a full credit check, but at least give a good indication of who is/isn't worth applying for

brightside229 · 27 Jan 2017 at 10:10

What is the need to repay in full every month?

For me it goes like this:

Get the longest 0% interest free credit card on the market, usually 18-24months, buy whatever i want on it, paying a good chunk off every month(not paying off in full) my current card i have just had the annual statement from tesco and have had a total of £7k credit over the year(£4.4k limit)

I have another 8 months to pay off the remaining £1200(easy) i have been doing this for the last 10+ years and in that time the total interest i have ever paid is £0.

I have actually saved money on interest by putting things like car insurance on it, instead of paying monthly, house insurance etc.. Plus theirs always the rewards for spending money.

I have always had it in my head that as long as you are not paying any interest at all, what does it matter if it is paid off in full each month?

I have an excellent credit score FYI, and have never been declined for any credit, Car, mortgage, Cards etc

Hostile-17 · 27 Jan 2017 at 10:39

I have a 0% purchases card which i use for work(mostly) and fuel which gets paid in full each month.

I also shifted debt onto a 0% (for 48 months) balance transfer card. This card doesnt get used as I repay above the minimum payment each month. the above works for me as I know the debt on this card will be paid by the time the term ends.

as brightside229 and Haggisman have indicated check the eligability calculators first and check your credit score. I use clearscore but have previously used the 30 day free trial with experian

Scam · 27 Jan 2017 at 10:42

Just find a credit card which gives something back. E.g. cash back, airmiles etc. If you pay off every month then you don't need to worry too much about interest rates. Probably the worst thing to do is get suckered into a 0% card, go mad and get yourself into debt that you can't afford. That's not what credit cards are for.

VincentHanna · 27 Jan 2017 at 10:55

brightside229 said:
What is the need to repay in full every month?

For me it goes like this:

Get the longest 0% interest free credit card on the market, usually 18-24months, buy whatever i want on it, paying a good chunk off every month(not paying off in full) my current card i have just had the annual statement from tesco and have had a total of £7k credit over the year(£4.4k limit)

I have another 8 months to pay off the remaining £1200(easy) i have been doing this for the last 10+ years and in that time the total interest i have ever paid is £0.

I have actually saved money on interest by putting things like car insurance on it, instead of paying monthly, house insurance etc.. Plus theirs always the rewards for spending money.

I have always had it in my head that as long as you are not paying any interest at all, what does it matter if it is paid off in full each month?

I have an excellent credit score FYI, and have never been declined for any credit, Car, mortgage, Cards etc

Standard credit card = pay off in full every month
Interest free credit card = pay off in full by the last month of the interest free period

Same principle.