Credit cards, which 1?

[Behemoth]

Ok have been getting a lot of post about credit cards recently and think that now I'm working I can take one up but not really sure which one.

I like the look of the Halifax Classic credit card, with an interest rateof 10.9% (if I read it correctly)

Am really not sure about these things but feel a card might come in handy for emergencies and so on. One slight problem is my Nationwide bank account. It's only really a savings account and so I haven't got a chek book for it, to get money out I have to goto the old hall in the wall, not sure if this creates a problem.

Any advice/guidance much appreciated.

Behemoth

[gem]

I would not worry too much about the interest rates UNLESS you plan to borrow, like not pay it all off at the end of the month.
No bank a/c. I would not have thought that a problem from the paying the cc bill point of view since you get a paying in slip at the bottom of the cc bill so you can pay, say, cash thro' your nearest bank (but they may make a charge for it unless it's a bank that you bank with or is the same as the cc company).
However, when you apply for a cc they MAY only accept you if you have a bank a/c. I'm not certain about this since I've always had a bank a/c, but be forewarned.
The only other points I can think of, some cc's offer points or something similar. If you know that you would use, say, Tesco Clubcard points then go for a Tesco Visa. That's the sort of thing I mean.
Good luck and DON'T spend more than you can repay. Most cc have relatively high interest rates, if you want/need to borrow then seek a loan, it's cheaper.

[Dantony]

I agree with Gem, don't start borrowing money from a CC, always pay the bill in full each month.

That way you never have to pay any interest, it is just a useful way to buy things by post or internet and you don't have to pay straight away, there are always a few weeks between buying and paying.

Just keep track of your spending and you won't get any nasty shocks. I use Excel to keep a running log of CC expediture.

The Tesco card is good if you shop at Tesco, they give you 1% discount on everything and sometimes 2 or 3% on special offers, often on petrol at Tesco stations. You get the discount in the form of coupons through the post every few weeks.

If you don't use Tesco then see if your local supermarket or shops offer cards.

Or use an affinity card, the Coop bank run several, I have an RSPB card that gets a cut from the Coop but there are a lot of other organisations that can benefit from your spending.

Read the small print on the offers that come by post very carefully, there are so many from odd companies with strange names, I get two or three each month but they all go into the recycling bin.

Dantony

[Memfis]

They will require a bank a/c number to run a credit check.

They may also require a proof of earnings like payslips.

Be Very Very Carefull.

I have two, one with a 3,000 limit which is maxed out (actually over)

The other I cannot remember the limit but it is about the same & is also maxed out, & my bank accounts with a 1,500 overdraft is also over the limit.

I am a very careful spender but these things clock up when you are out of work.

It always takes longer to pay off than expected too. Every time you say pay 30 pounds off u gain 25 in interest, so u've only paid 5 pounds off.

Get one in case of emergencies, but lock it away, & use it just for that.

-Mem

[silver]

most places will take switch - rather than mastercard / visa etc,. so you might be better off with that.. just open a bank account an get a cheque card an it'll have switch on it

CC - all seems great when you can pay it off every month, as memphis say a quick spell out of work or something an you are left with a large bill thats *very* hard to pay off...

Sil

PS, I should refinance so its not costing too much, perhaps switch to another CC so the balance transfer is 0% interest.. any recomendations?, wasn't there a website which gave details of all the current deals?

[Memfis]

I seam to remember Egg doing a good deal.

Dunno if it's still on, but might be worth a look.

P.s. Business trips being put on the CC doesn't help either!


-Mem

[squidgy]

I guess you're quite young, probably late teens early twenties from what you've said in this thread so far (but I could be wrong). If that's the case, and you don't have a bank account with a cheque book or a debit card on it, then I think your chances of actually getting a credit card are incredibly slim. Have a word with your bank first. After you've been working for a few months, they'll probably give you a debit card. At first, I'd be surprised if you manage to get a decent credit card from any organisation which isn't somehow affiliated with Nationwide, but it'll get easier as time goes by.

Lots of people are saying be careful, I agree, but the truth is, credit cards are often a much cheaper way of borrowing than store cards, or the HP deals you get in computer stores. It'll also be very handy if you ever go travelling.

You say which one - but it's better to have at least two, from different institutions. Some credit cards have their introductory offer balance transfer deals, but other credit cards have cheap balance transfer rates that apply whenever you transfer a balance from another credit or store card, regardless of how long you've had the card for - that is, it's an ongoing offer rather than a mere introductory offer. However, they still charge higher interest rates for purchases. Why do the banks do this? If you have a good history but can't convince anyone else of this, and you borrow from your bank, you're locked into them, you can't move your debt, and they know this - so they charge you whatever interest rate they can get away with. However, when other organisations start offering you credit, your bank knows it has to compete. It also accepts the fact that if someone else trusts you, that's a good sign that they'll get their money back too. So they start falling over themselves to offer rock bottom interest rates. I don't think I've explained this very well, but hopefully you get the gist of it.

[Behemoth]

Thanks all, certainly food for thought, but have decided to sit and wait and see what my bank offers me in a few months time, never know might be able to get a proper Debit card.

Behemoth

[landsker]

There are, out in the big bad world "secured" credit cards. These work by you, as the holder, depositing enough dosh with them to cover your "credit" limit.
This can be useful if you need to buy over the internet etc. After a period of satisfactory operation you can apply for a real credit card, and you should be accepted then

[DavidMad]

Your question - "which one?" is the wrong question.

Some credit cards are "cheaper than cash", there's a Halifax card which gives 1% off, Goldfish is worth 1% if you shop at Asda and some others. These generally have higher interest rates SO DON'T PAY ANY INTEREST ie pay off in full without fail, if you leave behind any amount at all, you'll pay interst fro purchase date to paid date for ALL spending.

Some credit cards are useful for borrowing. Look for low interest rates and, if you can pass their credit checks, surf your debt around - you can generally find 0% or 2-3% rates for 6 months and then another etc.

Get one from each category.

[MegaTsunami]

Well, I haven't used my Barclaycard in a while now (zero balance you see), and I only got one for a fixed low rate on a balance transfer which is now paid off, was only 5.9%

Anyway, they are sending me a GOLD card very soon and closing my other account down, and this new card has a low rate fixed 6.9% APR for balance transfers - until the balance is paid off which I think I'll act upon.... I currently owe just under £3,000 on an ALLIANCE & LEICESTER Visa @ 8.8% fixed APR until paid off, and also £1,000 on a NATWEST Visa @ 5.9% APR, again fixed until paid off.

NOTE: I DO NOT SPEND ON THESE 2 CARDS.

Should I move the £3,000 from the 8.8% rate card to the new 6.9% rate GOLD Barclaycard ?

How much will I save - anyone please know ?

[bouncingjohn]

There was something on the telly this morning that said the best card at the moment for transferring balances is the PC World Marbles card: 0% for 9 months then 14.9% (i think - I wasn't really paying attention) after that.

[MegaTsunami]

0% for 9 months then 14.9% afterwards...

Man, that's a rip-off !

Try the NatWest VISA @ 5.9% fixed, until balance transfer is paid off, or the Alliance & Leicester VISA @ 8.8% until paid off (don't you read my posts eh ?!)

Hope that's of use to anyone... ?

Edit: Oops ! Sorry, my posts only take into account those wanting to transfer a balance from another credit card !

Still, hope those wanting to transfer a balance found it useful ?!

[MegaTsunami]

Originally posted by MegaTsunami
Well, I haven't used my Barclaycard in a while now (zero balance you see), and I only got one for a fixed low rate on a balance transfer which is now paid off, was only 5.9%

Anyway, they are sending me a GOLD card very soon and closing my other account down, and this new card has a low rate fixed 6.9% APR for balance transfers - until the balance is paid off which I think I'll act upon.... I currently owe just under £3,000 on an ALLIANCE & LEICESTER Visa @ 8.8% fixed APR until paid off, and also £1,000 on a NATWEST Visa @ 5.9% APR, again fixed until paid off.

NOTE: I DO NOT SPEND ON THESE 2 CARDS.

Should I move the £3,000 from the 8.8% rate card to the new 6.9% rate GOLD Barclaycard ?

How much will I save - anyone please know ?

Boost ! I need to make a transfer onto the BC "GOLD" before end of the month !!!

Hi,

All depends upon yer circumstances......... 0% is great fer 6 months..9 months whatever if you have the means to settle before the interest kicks in.

Our 18 yr old has got a card which gives 0% for 6 months. That's purchases and transferred balances included... Capital One I do believe.

STS

[DavidMad]

Mega,

Transfer if you're not going to spend on the card. If you spend on it then your payments will almost certainly pay off the balance first leaving the higher interest purchases untouched (but check the small print).

Can you not bung it on the NatWest one?

Also..

0% for 9 months then 14.9% afterwards...

Man, that's a rip-off !

not if you then move it on again.

As I said earlier, get one for spending which has freebies/points/rewards (and never pay interest), and use another for your debt.

[MegaTsunami]

Right then, I filled out the Barclaycard Gold cheque for the amount of £1,400 and posted it off to Alliance & Leicester last week, which when paid off my account, will leave me now owing £1,500 on the A&L card @ a fixed 8.8% until paid off, plus a new amount of £1,400 on the new fixed 6.9% APR Barclaycard Gold offer until paid off !

Only thing that worries me is that today, my new BC "GOLD" card came through the post along with a separate letter / cheque offer as the one I had above, only this letter said the 6.9% APR was an offer for the next 6 months.....

Now, am I right in saying that seeing as I sent off the balance transfer cheque on the 6.9& APR offer letter I will still get just that, i.e. 6.9% fixed APR UNTIL PAID OFF ?

They can't turn around and try and charge me 6.9% APR on the £1,400 balance just for 6 months now can they ?

I have kept both letters just in case...