My First Credit Cards
Credit cards are extremely useful tools for maximising return on spending. But be wary. One man's tool is the same as another man's weapon. I am cautious when it comes to credit card spending. I always pay back in full every month via direct debit. Repeat, I pay back the full balance monthly, not the minimum. That way, it doesn't matter what the interest rate is, because I will never pay interest. I just have to look at the benefits of spending on that card.
A Credit History to Get Credit
The cards I outline here are the first ones I owned and used. I am young, and just over one year ago, my credit history was minimal. I had a phone contract here and there and I was present on the voting roll. But the irony of getting your first credit card is that you tend to need a credit history to be accepted for a card with a valuable rewards scheme.
So I started out small. I applied for a capital one credit card which was designed for someone with little/no credit history. I was accepted and given a £200 limit, which is minimal. But the card served it's purpose. I watched my credit score increase and built up a 5 month history before applying for an American Express card. Amex rewards, to me, are highly valuable. I used to think avoiding them was sensible as I heard on the grapevine that their store acceptance rate is very low. Now, I would say that is no longer the case. Most major retailers accept Amex, and the acceptance rate is increasing year on year.
On this page I have outlined my first credit cards. You will note that I have not reported the APR (interest rate) of any accounts. This is because I do not take into account APR as I pay off the balance in full every month.
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Capital One Classic
Opened: February 2017
Credit Limit: £450
Best Usage: Credit builder (small monthly spend)
American Express Rewards
Opened: July 2017
Credit Limit: £1500
Best Usage: Amex Rewards (everyday spend)