Best credit card for someone on benefits?

DoneAndBeyond
DoneAndBeyond Community member Posts: 9 Listener
edited March 2022 in Benefits and income
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!

Comments

  • Ross_Alumni
    Ross_Alumni Scope alumni Posts: 7,611 Championing
    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.
  • racyguy
    racyguy Community member Posts: 560 Empowering
    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.
    Absolutely. Taking out a credit card whilst on low fixed income be they benefits or SRP can be a recipe for disaster unless you factor in that the debt has to be repaid as you point out.

    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.

  • Alphabet123
    Alphabet123 Community member Posts: 1 Listener
    Hi I'm on pip and I'm looking for a credit card. How do I get one? 
  • bg844
    bg844 Community member Posts: 3,883 Championing
    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.
  • OverlyAnxious
    OverlyAnxious Community member Posts: 3,418 Championing
    Someone else's!  ;)

    I've never had a credit card myself.  It's not needed for a good credit rating as some people suggest.
  • L_Volunteer
    L_Volunteer Community Volunteer Adviser, Scope Member Posts: 7,924 Championing
    What an insightful thread! Thanks everyone for your contributions  :)
  • Racertracy
    Racertracy Community member Posts: 1 Listener
    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!
    Racertracy
  • Cher_Alumni
    Cher_Alumni Scope alumni Posts: 5,714 Championing
    @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 know :) 
  • Ivy2023
    Ivy2023 Scope Member Posts: 7 Connected

    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.

  • cupcake88
    cupcake88 Posts: 1,398 Trailblazing

    hi there I have a hsbc card I have a 8 k limit but I never use it only for emergencies. X

Categories