First credit card in the UK – which one and for whom?
Credit card is one of the symbols of modern Western societies. It is no different in the UK. Millions of British people cannot imagine their lives without her. How to make it for the first time?
Have you come to the UK or have you been here for a long time, but are you thinking about taking your first credit card? If you intend to use it wisely and take responsibility for your decision, in other words, you measure strength on intentions, thanks to it you can get many benefits.
Probably each of us met a situation
When suddenly an unplanned expense popped out. We do not always have sufficient savings to cover it or we do not want to violate our deposits, of which we have a percentage. Then it seems ideal to have a card that allows you to immediately cover the cost of a new fridge, car repair or any other. You do not have to take a loan, and if you pay off your debt within the period set by our bank, most often the loan does not cost us anything. We don’t have to pay any interest.
Of course, it is very important to remember that the money spent is not free, that you will have to give it back, and if you do not do it on time, there may be serious financial problems. One should also know that the debt should be paid back as a penny, otherwise the interest will be calculated on the whole borrowed amount, not on the unpaid one.
If we borrow one hundred pounds and give back eighty, the bank will charge a percentage not from the remaining twenty, but from the whole hundred. In the event of late repayment, interest on the credit card is usually higher than on a regular loan. Banks, fighting for customers, also offer us many additional benefits, such as casch back or other loyalty programs.
Thanks to it, it is easier and safer to shop online
Which seems a special advantage nowadays. Of course, you must remember to protect your credit card information, such as its number or expiry date, and provide it only to trusted suppliers, otherwise someone can easily clean our entire account.
Another great advantage is the fact that thanks to the card, if you regularly pay off debt, you build your credit standing, which can improve your listing, for example when applying for a loan for an apartment.
Banks are very reluctant to look at those who have never taken any loan, prefer to borrow money to those who have already taken loans and repaid them on time. Therefore, if you are “new” in this respect, do not count on too good conditions.
Which credit card in the UK should you choose?
First of all, you have to remember that if you do not have an adequate credit score in the UK, you should not count on any particularly favorable offer. You have to reckon with higher interest rates, no bonuses and generally less favorable conditions. However, it is the first card that can be used to build trust with the bank, which will result in more favorable offers over time. Increasing the limit, lowering the interest rate, increasing the repayment time or more favorable cash back or other loyalty program. It is not worth immediately applying for credit cards in the UK from the higher shelf, because every rejected application reduces our creditworthiness, and thus puts us in an even worse position.
To start with, you should try to get a so-called Credit buliders (or Poor credit). If you are unsure what to expect, you can check our credit standing for free on our creditworthiness page. It is also worth choosing the benefits offered for you. Some cards may offer reimbursement of some expenses incurred in supermarkets (although at the beginning you should not count on too much), others e.g. discounts on fuel. The universal rule is also the fact that our own bank will be most favorable to us and if we do not have a good credit history in the UK, you should go to it first to apply for a credit card.