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can someone help me with credit score and credit cards- I feel so dumb

I am 21 and I know you need a credit card to get a house in the future. I have a savings and current account with halifax. I want to get a credit card but I dont know where and what bank to get it from? does the bank matter???

Reply 1

martin7

Original post by jumbojim56877

I am 21 and I know you need a credit card to get a house in the future.

I have a savings and current account with halifax. I want to get a credit card but I dont know where and what bank to get it from? does the bank matter???

If you want a card, and have a regular income, then I'd start by applying for a card with Halifax. They have the advantage of being able to see how you're managing your existing accounts and that might help them to come to a positive view of you.

Failing that, perhaps look at "starter" cards, like Barclaycard Forward.

If you get turned down for a card, leave it 3-4 months before applying for another card (even with a different bank). Too many failed applications on your credit history suggests that you're desparate to obtain credit, and is interpreted negatively by lenders.

Reply 2

Reality Check

Original post by jumbojim56877

You don't 'need a credit card to get a house' as such, but you do need some evidence that you can handle credit responsibly - that can be through managing an overdraft, fixed-term credit like a personal loan or car finance, or a credit card.

As you have an existing relationship with the Halifax, then it's sensible to apply there for a card (if that's what you want to do). Equally, you could apply for an overdraft on your current account, but try not to use it, or only use it very infrequently and for as short a time as possible, as the interest on overdrafts now is extortionate at about 39%APR. Be aware that lots of banks 'own' lots of other names when it comes to finance, and it's probably sensible, if you get turned down for a Halifax card, not to apply for one issued Lloyds, Bank of Scotland or any other subsidiaries of Lloyds Banking Group.

The best way of finding out which cards you might be eligible to apply for is by using a 'quotation' service - these are offered by places like moneysavingexpert's Credit Club, or part of the free Experian or Equifax services like ClearScore (these are credit reference agencies)> You will be able to see a list of cards for which you can apply, alongside an 'acceptance score' which gives the probability of being accepted for the card, if you went on to make a formal application. Do NOT apply for lots of cards willy-nilly, because each one leaves a 'hard' credit search on your credit reference file. You don't want to accumulate a lot of these in a short period of time.

Reply 3

Reality Check

Original post by martin7

Where on earth did you get that idea from?

Having a credit card (and managing it appropriately) will probably be interpreted positively when a mortgage lender looks at your credit history. Conversely, having a credit card and not managing it correctly (e.g. missing payments, exceeding the credit limit) will reflect poorly on you.

If you want a card, and have a regular income, then I'd start by applying for a card with Halifax. They have the advantage of being able to see how you're managing your existing accounts and that might help them to come to a positive view of you.

Failing that, perhaps look at "starter" cards, like Barclaycard Forward.

If you get turned down for a card, leave it 3-4 months before applying for another card (even with a different bank). Too many failed applications on your credit history suggests that you're desparate to obtain credit, and is interpreted negatively by lenders.