Credit Cards..

[Sam Nichols]

I know the majority of forumers on here are either too young/have no use for a CC. I'd imagine some on here probably can't get a CC either!!

But i'm not really too interested in why people think they're a bad idea or whatever.

Basically for my trip to Australia I want a back-up something I can use if, for example I trash my bike and need to replace it/it gets nicked. Or if there's something I really want to do/see that I didnt budget for.

Obviously I will also be using it as a safety net.. I wont be phoning mummy and daddy to wire me money!

So ideally I want something that I don't have to pay back straight away.. As I will be away and not working. Most of the credit cards I've seen are interest free for 3 months. Is this the norm? I don't really want a 3month one.. for me 6months is the bare minimum as i'm expecting to arrive back in Guernsey with no money and so I'll need to have a month or two where I dont pay anything back ideally.

Things to note..

• I'm 19 and will have been in full time employment for one year.
• Never had a credit card or been in debt so no credit history.
• I will be coming back to full time employment as soon as I arrive.
• I fully intend to use the credit card so I'm looking for the best deal.
• Currently bank with Natwest but will be willing to change banks if i can get a better deal.
• I don't really want to pay any interest if possible but the lower the better.

I think that covers everything? If you need anymore info then let me know please.

Any first hand experience or guidance would be greatly recieved!!

Cheers

Edit: Wow - I typed a lot without realising it then! Sorry for essay!

Edited September 4, 2007 by nichols_sam

[Fish-Finger-er]

im with natwest for banking,and when they upgraded my account, my branch manager(my banks stupid small, so when you come to swap accounts, you get an appointment with the manager the same day) suggested me having a credit card and i did so, i activated it on march 19th this year(i know as it was the date leeds tickets came out, as i had it for about 3 weeks before, but didnt activate it). since then id say in the region of £7000-£9000 has passed through it, and im still paying no interest, although it was never discussed how long the interest free period would be. so may be worth trying to get some figures on this.

mbna are offering me a platinum card with 9 months on purchases and 13 months on balance transfers. although it may be worth giving them a go. ~

nationwide, are as far as im aware the only company who dont charge you for using your credit card abroad, which is kind of the whole reason you want it.so may be wise to see what they offer interest free wise. and tot up what you envisage spending abroad, what the charges will be and the interest incurred, as it may prove better to be charged a small amount of interest, but not get charges for using the card abroad etc.

also as for the period for paying it off when you come back, always bear in mind balance transfers. a lot of companies are offering 13-15 months 0% on balance transfers. meaning any debt you transfer to that card doesnt incur interest for 13 months from when the card was activated. as they like taking on debt, the only reason most people transfer the debt, is because the interest in getting them, and they cant afford to pay the debt off right now. meaning there the kind of people who spend a lot more than they have, meaning there exactly the kind of people a credit card company want, as they will run up nice big bills, with fees etc, meaning more money for the banks.

meaning if you signed up for(example only, prices + figures are not accurate) for nationwide with 3 months 0%, and no fees for using your card abroad. you could run up your debt in aus on that card, then when you come home, and the 3 months ended, transfer to mbna who are offering you 13 months interest free for the £20 transfer fee, and then have only payed £20 on £2000 of debt, over the course of 16 months, with no abroad fees or anything.

if your smart, you can save a lot of money using credit cards, for example, my mum owes about 3k on her credit card, its 0% for 14 months from when she got it.(shes had it like a month longer than i had mine). shes got the 3k, but its sitting pretty in an online bank account, earning 6.4% interest, therefore over the course of a year, she makes about £190.

[JD™]

i can't really add anything to that ^^ BUT in regards to getting the card in the first place:

if you live with your parents, a lot of your ability to get a cc will depend on their credit history as you have none. Bare this in mind because if they can't get a card, you more than likely wont be able to. On the other hand, if you get turned down at the beginning, it is worth giving them a ring and offering a parent as a guarantuer as long as you can convince them you wont need it!

Hope this helps.

J

[haydon_peter]

Your gonna love Australia

Anyway, I was in the same situation as you, going away to Australia so decided to get a credit card. I went with Nationwide after speaking to a mate who uses them.

As already said you get no bank charges for the cards use abroad. When I got my card around 4 months ago Nationwide were only offering 3 months interest free, not as long as some people but better than nothing.

What I would advise you do is set up a Direct Debit for the minimum monthly payment, this way your not gonna get caught out for any missed payments.

Whatever bank you go with make sure you set-up with on-line banking so you can monitor everything while your away, combined with on-line banking from your current account you can easily pay the card off as and when you need to. Be aware it will take a long time for any payments to clear, I had to wait for around 7 days and my credit card was getting declined while I was away. It wasn't a problem as I just used my debit card instead but this cost me a few quid of bank charges.

If you have time before you go and can be arsed to mess around opening a different current account, Nationwide offer free use abroad with any debit card transactions as well as cash withdrawals.

[Sam Nichols]

Really useful info so far guys, much appreciated!

Unfortunately I can't get a nationwide CC as they don't have a branch in Guernsey nor do they offer their services to us

Not fair!