First credit card

  AL47 18:26 01 Jul 2009

im quite happy, my first application for a credit card has been accepted! 1% eqivilent cashback for use at thier site

i am fairly shocked because i have no credit history and its quite a useful card [for me]

im 23 and probably going to need a credit history in the future and paying things off at pay day will make life a bit easier

found it on the money saving website, which is quickly becoming my fav website, just changed current accounts for a free £100

  GANDALF <|:-)> 18:33 01 Jul 2009

'paying things off at pay day will make life a bit easier'...oh you poor naive person ;-)


  AL47 18:39 01 Jul 2009

no, im pretty good with money, the only debt i have is my student loan, never been in my current account overdraft, comes from my mum lol

  Forum Editor 18:56 01 Jul 2009

You'll build one by using a credit card. The secret is to use the card and make regular payments - never miss one if you can possibly help it.

  AL47 19:02 01 Jul 2009

this was the main reason i applied for one, just didnt think id get a cashback one as my first!

im going to set up a direct debit to go out every month to be paid off in full, that way i wont have to worry about it

  Colin 20:39 01 Jul 2009

Do you really need one? If it's going to be paid off every month why not use a debit card instead? I know you get protection for some purchases that a debit card doesn't give, but please take notice of Gandalf's post. My advice - cut it up and chuck it in the bin.

  2bathred 20:57 01 Jul 2009

AL47 seems like your head is firmly screwed on. The way you say you are going to use the card is admirable, pay off in full every month and be happy, pay of the minimum and be sad. The joy of a credit card is being able to get what you want when you want it, the horror of the credit card is seeing something you would love to have and knowing that you can't afford it. Keep this devil at bay and you won't go wrong.

  interzone55 21:11 01 Jul 2009

A good credit record will come in handy in the future, and the only way to get one is buy using credit wisely.

If AL47 is sensible - and they seem to be by waiting until they're 23 before getting a credit card, and then setting up a DD to pay it off in full - then a credit card can be an extremely useful tool.

Just don't do like I did with my first card, wander into a rare record shop near Harvard and spend nearly 3/4 of the limit in an hour. Not my most sensible move, and the banks weren't able to stop you being stupid with their activity analysis software in those days...

  AL47 21:17 01 Jul 2009

as i said ive always managed with a debit card, i dont buy what i cant afford, if the money isnt i my current account it doesnt get bought!

id rather wait for something and pay less than have something now and in the long run and pay more

ill just see this as a debit card where i get a bit extra cashback, a credit rating, and buyer protection

just today i was giving someone advice who had come into £3000,
pay off any debt first, then save, he wanted to put this into savings before paying off overdraft because it would 'disappear' didnt make sense to me

  BT 08:10 02 Jul 2009

You seem to have a sensible attitude, but setting up an automatic direct debit isn't the best idea. If you do spend a bit more than you intended you could end up short for the rest of the month.

I had one of the first Credit Cards, issued by Barclays in about 1969. It had a credit limit of £100, about twice my monthly income at the time. I didn't have to apply for it, Barclays issued it to some of its Current Account customers.

I now have several cards with total credit limits far in excess of my income, but in all the years I have NEVER spent more than I can afford to pay back over three months. I use my cards to manage my money not to spend more than I can afford, which unfortunately seems to be the attitude of many people today.

  newman35 08:54 02 Jul 2009

I believe that 'paying off every month' can actually lead to a bad credit record!
It appears that the 'system' prefers to see you paying off in instalments...crazy!
Friend of mine had always paid the full amount every month, yet when he tried to get a car loan they said his credit record was a problem because he had always paid in full.

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