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.
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.
If you liked this post, hit the like button down below. If you want to contribute to the discussion you can do so in the comments section down below.
My First Credit Cards
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)
Current Credit Cards
It’s been a few years now since I applied for my first credit cards. If you want to take a look at my updated list of credit cards with updated credit limits, I have a section on this in a regularly updated article.
The article also includes my portfolio of savings, current and investment accounts. If you liked this post, please remember to leave a like. What were your first credit cards and how did you get your foot on the credit ladder? Let me know in the comments down below.