[JackFord]

I was looking into getting a credit card but I don't intend to borrow any money. At the moment I bank with HSBC and have a debit card which is actually a Maestro card. I want to get a credit card for a few reasons. Firstly am I right in saying that I get increased online protection if a transaction goes wrong. Also I am taking a trip to the States soon and from what I hear they don't accept Maestro everywhere over there. Furthermore I have just gone to renewl my dotmac email subscription but can only pay with Visa, American Express or Mastercard, none I have.

I was looking at this card from First Direct because I like the idea of 24/7 phone support and I believe they are associated with HSBC.

I don't ever intend to go overdrawn, but I don;t really know how cards work. Will I get charged if I applied and never used it? If I change so my pay-cheques go into my credit card account and just spend the balance I earn and never go into the red I won't have any fees to pay?

What would the forum recommend, strange, getting a credit card but not wanting credit but I really only want the options that a Visa logo can bring.

[krish]

If you're using cards abroad, I would recommend both Nationwide debit and credit cards (meaning you'd need their FlexAccount current account for the debit card) - all foreign currency transactions are commission and fee free (good info at MoneySavingExpert) ... and I have had to phone them at night from the US on one occasion - I expect most do have 24/7 support anyway

You shouldn't get charged if the T&Cs state NO ANNUAL FEE, which most bar AMEX usually are

Always worth, or indeed necessary, having Visa/MasterCard plastic (one or the other or both should alway suffice .... never really known anywhere that takes plastic not to take those two)

EDIT: Yes, there is increased online protection with CCs ... in fact there is better protection against fraud (as well as naughty retailers going bust and taking all their customers' money without delivering their goods) with CCs than DCs in the sense that you won't have your bank account wiped out just like that. Once the issuer is alerted to the fraud, they'll freeze those suspect transactions pending investigation ... but you don't really want your current account funds to be wiped out even temporarily, as it is of course a massive headache and you could be up a certain creek without a paddle when that happens

[Abbeygoo]

I think its very useful to have a credit card, whether you want to use the "credit" aspect or not.

A lot of people have this card to benefit from the worldwide acceptability it brings and repay the full balance incurring no interest charges at all. Some credit cards will have an annual fee but these tend to be the more exclusive cards that offer fringe benefits such as airport lounges etc.

As you are travelling to the US I would definitely take a credit card as it always can provide vital back up should you need to use it if you preference is for Maestro.

As an aside, you don't have to get your salary paid into the credit card, just have that paid into your bank account as normal. You can set up a direct debit facility that automatically repays the full outstanding balance on your credit card every month direct from your bank account without having to remember.

[pjclark1]

Nationwide don't charge for overseas transactions ... get one of theirs. (they also give 1 year extra warranty on any AV equipment you buy)
Egg give 1% cash back on anything you buy ....... may be worth considering.

HSBC/FD are the very worst company to get into debt with ... have repayment problems and they will hound you to the end of the earth.

[SeanT]

You're supposed to use a credit card in the way you describe really - pay off the balance in full every month, and get between 28 and 56 days extra to pay for stuff, without incurring interest, and have increased buyer protection.
Cards to have if you can get them:

egg Money - cash at the same rate as credit at a low 7.9% - ridiculously useful for an overspend (500 quid towards my last car came off this one)

Nationwide - visa so accepted most places - not a terribly good interest rate but; NO negative payment hierarchy (so you can do a balance transfer, leave it on there for the free period, and carry on using the card) - usually a decent limit (which then helps you get cards with other providers) - NO charges for using it abroad to buy stuff in their currency (so when they ask you if you want to pay in their currency or in pounds sterling pay in theirs, otherwise the shop is charging you at their exchange rate) - free 1 year extended warranty on white goods bought on it in the UK

Barclaycard - if you travel abroad a lot, and to exotic destinations, you need one of these - hence the adverts being set abroad - just about anywhere takes barclaycard, my friend took a year out in belize and was told to get one as it's the only safe option

and the Nationwide debit card is useful too, as above

Most other cards in existence are only of use for balance transfers and have a negative payment hierarchy and disgusting interest rates so shouldn't be used for anything else.

[JackFord]

So far everyone seems to be stay away from First Direct and go with someone else, I'l have a look online and see what I come up with. Thanks guys. If I don get charged for using abroad though, what kind of costs do I rack up, percentage wise?

[nheather]

I have used credit cards in exactly the way you describe for over 20 years without any problem. With a good record the odd time a payment has turned up a few days late I have always been able to write off the interest.

You're supposed to use a credit card in the way you describe really - pay off the balance in full every month, and get between 28 and 56 days extra to pay for stuff, without incurring interest, and have increased buyer protection.

Whilst I agree with you, there was the case recently (with Egg, I think) where they dumped a load of customers - they were made up of bad liabibilities (understandable) but more worringly, people who paid off in fall each month - the theory was that they weren't happy not getting interest from them. Their ideal customer is someone who is financially stable but incurs credit card interest.

Cheers,

Nigel

P.S. Don't have an FD Credit Card, but my mortgage, current, savings, ISAs are with First Direct and all my dealings with them have been nothing but positive.

[Beetlejuice]

Originally Posted by JackFord

So far everyone seems to be stay away from First Direct and go with someone else, I'l have a look online and see what I come up with. Thanks guys. If I don get charged for using abroad though, what kind of costs do I rack up, percentage wise?

This is a useful tool to give you a rough guide.

Link

[wormvortex]

I have an HSBC credit card but have never paid any interest on it in 2years. Always pay it off in the 39days given. Mainy use it on the internet where they don't except debit cards or if I make a large purchase and don't want it to come out of my bank account at the time.

[kopchoir]

you could always buy a pre paid credit card and add the cash on to it for those purchases that you cant use your debit card for, i dont have one and i believe there is some hidden charges with regards to these but may be worth a look for what you want a credit card for.

Maybe someone else could shed some mre light on these for you