Best credit card for someone on benefits?
DoneAndBeyond
Online Community Member Posts: 9 Listener
I'm unemployed and am on PIP and ESA. This would be my first credit card so I know a credit-builder one would be best, but what companies are the best? Many thanks!
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Hi @DoneAndBeyond
I hope you are well.
I have no personal experience in this area, but I'd be interested to hear from other members about whether they have any recommendations or insights to share.0 -
woodbine said:https://www.moneysupermarket.com/credit-cards/credit-builder/
There are quite a few "credit builder cards" they all have one thing in common they charge quite high interest rates usually around 39% APR, if you get one the best way to manage it will be to set up a direct debit to pay it off in full every month, then use it to buy something you were going to anyway.
Recently heard of a single mum in my area racking up a debt of over £15,000 with an income of £650 a month! No hope in her ever clearing that amount. Personally we have two credit cards - a Barclaycard one with a limit of £8000 but never used for over the last 8 years and a Halifax one with a limit of £11,000 which is used to buy one offs that do not exceed £500. The debt on that card is paid off at the rate of £150 or so a month over 4 months.
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Hi I'm on pip and I'm looking for a credit card. How do I get one?0
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https://www.moneysavingexpert.com/eligibility/credit-cards/search/This will compare all that are available to you without leaving a negative impact on your score. As others have advised, please do not take up debt you can’t afford.0
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Someone else's!
I've never had a credit card myself. It's not needed for a good credit rating as some people suggest.0 -
What an insightful thread! Thanks everyone for your contributions0
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DoneAndBeyond said:I'm unemployed and am on PIP and ESA. This would be my first credit card so I know a credit-builder one would be best, but what companies are the best? Many thanks!0
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@Racertracy Hello there and welcome to our online community,
I wonder if you had inadvertently typed your username, rather than a comment? If there's anything we can help with, please let us know0 -
I think it is not easy to get a good credit card on benefits. They probably have a higher rate in comparison.
I can recommend Vanquis (Visa) and Capital One/Ocean (Mastercard).
I hope this helps.
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hi there I have a hsbc card I have a 8 k limit but I never use it only for emergencies. X
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