Getting Credit Card

NotAGolf

NotAGolf

NotAGolf

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Hi all.

I'm thinking about getting a credit card, the predominant reason is to build up a decent credit rating, the other reason is to make my online purchases a bit more safe.

I'm not worried about over-spending, I'm not an idiot and consider myself sensible with money, I will set up a system to pay the money off IMMEDIATELY and automatically if possible. If I don't have the money I don't spend it, simple.

The thing I'm worried about is being declined for a card, I read about the whole spiral effect of being declined, because you got declined for a card you'll be declined for your next and so on. I know this isn't always the case but it's possible. So I don't really know what to apply for. I only want something basic. Any bonuses like cashback or airmiles etc would be a bonus.

The thing is I don't think I'm a very good candidate. I'm 22, I finished uni last summer, and I've just got back from traveling for half a year. I'm currently unemployed and have only ever had a job in the local supermarket. Obviously I hope to have a job soon but for now I am offically unemployed. I owe about £12,000 on my student loan. The only thing I use direct debit for is gym membership, everything else (old gym membership, car insurance etc) I pay off upfront for the entire year. I don't even have a phone contract (PAYG:D:o)!

I have 2 current accounts, 1 with natwest (which was a studnet and is now a graduate account) and a flexaccount with nationwide. I have e-savings open for both accounts, and because they give better interest than my current accounts I only ever have a few hundred quid in. My natwest current acount has been overdrawn for about 3 straight years (between £1000-2000) as it's interest free so I put that in the e-savingsto earn a bit on it. Would this go against me?

I've had my natwest account for about 5 years now, the nationwide I only opened 8 months ago. I would guess I would be more likely to get offered something from natwest for this reason, although I did get a complaint from them a few months ago about not spending anything on my card, i presume one of the conditions for the interest free overdraft was to spend regularly. I was out the country though so wasn't using it but I will go back to using it now. Would this go against me as well?

Any advice would be awesome.
Thanks.
 
I wouldn't recommend getting a credit card at all. Even for the purposes of building a good credit rating. I have a pretty good credit rating, mainly because when I had credit cards I paid off just more than the interest - which they like
 
i thought of myself as having a bad credit report due to my stupidity when i was in my teens, but got accepted for a credit card with no problems, was givin a very generous credit limit aswell which i was very surprised at lol, but only way to know for sure is to shop around and find a card for your needs and apply for it.
 
You sound in exactly the same situation as me, I also have no income, pay up front and only have a gym membership and I'm with natwest :p

I applied for a card with another bank, got declined, and then applied for one through natwest after reading that if you are an existing customer your bank is more likely to give you a card. So I've got a natwest credit card in the end.
 
If you are always going to pay it off, then just get any old credit card. A number of banks do high APR cards for this very reason - those with little credit history. You'll get one, it just won't have a great interest rate but who needs that anyway? Like you, my credit card is simply used in place of my debit card for security. If my card gets cloned it's a lot easier to sort it through my CC company than a debit card, from experience.

My first CC I got with my bank as it was tied to my online banking which allowed me to keep track of everything.
 
Go to your current bank and ask.

And don't set up a direct debit to pay off the entire balance, set one up to pay off the interest. Then if you DO need to use it in an emergency you won't be screwed.
 
How many times will you forget and then be charged interest on the next month. If you clear the balance off in full each month you take into account the grace period on the purchases and won't be charged interest.
 
Perhaps banks are more strict these days but I had no trouble getting a CC from Natwest (£500 limit) when I turned 18 and had no regular income. Can't see any compelling reason they'd refuse you.
 
Strife212 said:
Go to your current bank and ask.

And don't set up a direct debit to pay off the entire balance, set one up to pay off the interest. Then if you DO need to use it in an emergency you won't be screwed.
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Logged in especially just to say this is ridiculous.
 
Your bank will normally give you one quite easily. and if you setup monthly dd you can't really go wrong.

Personally I only use credit cards now, the extra security and the benefits make it a no brainer for me. big limits are also an absolute lifesaver when i've been stuck in a situation such as in a foreign city at short notice with nowhere to stay and no money on me.
 
And don't set up a direct debit to pay off the entire balance, set one up to pay off the interest. Then if you DO need to use it in an emergency you won't be screwed.
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????? Pay it all off asap(Within a month) and don't get charged interest at all. It's how credit cards are ment to be used, there not for accumlating debt on unlike what idiots do these days.
 
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you're in the same position as me last year. Get a credit card when you get a job, end of. No point even bothering gettin one before hand.
And for the record Natwest will give any idiot a credit card, they gave me one with no income or student loans or anything going into my account. I cut it up and never used it and only recently requested another one, which I used to book a holiday with.
 
Thanks for the replies all.

Couple of points so far:

@Wicksta: I'm not with O2 and don't really want to be. I don't use my phone much.

@Jotun: What type of card did you get in the end? Any complaints?

@Kol: One that enables online banking would be very useful, even less likely to forget about it then. Also, can you pay it off all online as well? That would be ideal.

@Beerbaron: Nope, they just gave me a Maestro.

@Strife212: That seems like an odd thing to do - just makes things more complicated.

Looking at Natwest site the classic card seems to be all I'm after. Only thing is it doesn't have any type of bonuses (like cashback, airmiles etc). Do you think it''ll be possible for me to get a card with bonuses or should I just forget about it for now and go for the basic?
 
peetee said:
Get a credit card when you get a job, end of. No point even bothering gettin one before hand.
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Nonsense, his reasoning is perfectly sound. For added security when buying things online and with the intention of paying it off in full each month. Regardless of whether he's currently employed, as long as he has the money to pay it off (savings!) then I don't see the problem.
 
I'd go for a basic for a few months, within that time you'll then end up getting bombarded with offers for credit cards.
 
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