Credit rating/fee-free credit card

Gina Rinehart on 02/01/2013 - 01:00

Hello,

I don't currently have a credit card, and don't really have much of a financial history which would indicate some sort of credit rating, so I'm looking to help improve this for the future when I plan on getting approved for loans/etc (which we all do somewhere down the line).

What I'm basically asking is, are there any fee-free credit cards out there with no interest on purchases (if paid on time), which I'd actually be approved for? I currently only work at woolies, and I'm technically casual, although I do a fair few hours and would easily be able to pay off a small amount on a credit card (only using it for small purchases, instead of my debit card).

Otherwise, if not fee-free, what would be the best option from here? I have no idea if I should even be considering a credit card.

Keep in mind that I don't earn a fixed salary, so even if I do apply, I may not be approved (although it's worth a shot, right?). My bank account history is fine, I have a fair bit of savings at the moment and I guess that's my only reference of being able to pay stuff off, can this count for getting approved for a card?

Thanks

Financial

Comments

  • ozhunter on 02/01/2013 - 02:08

    http://www.28degreescard.com.au/features.html

    No fees and good for international transactions/travelling. Interest is quite high but if you plan to pay within the interest free period it shouldn't matter. No sure how banks are with loans/credit cards right now, but when I worked as a casual a few years ago I got a credit card on my first application.

    • Gina Rinehart on 02/01/2013 - 02:22

      Thanks for the reply.

      I have seen that card in the past, but it seemed to have a requirement of like $30k/year, which I don't definitely make as I don't work that much.

      I just tried to apply with my details, and got this response:

      We're sorry, but based on the information you've provided, we're unable to offer you a 28 Degrees MasterCard, as your application doesn't fall within our current acceptance guidelines.

      :(

      • grasstown on 04/01/2013 - 19:26

        These aren't fee free but they are low $15,000 income.

        http://www.creditcardfinder.com.au/the-best-low-income-credi…

        If you don't earn 15,000 I wouldn't apply as i think it looks bad on your rating if you are declined credit. As It doesn't say anything on the rating as to why you were declined.

        The other advice for building up credit is good.

        Credit cards can be great. If u get the right ones.

        • Gina Rinehart on 04/01/2013 - 19:28

          Hi, thanks for the link but I don't think I will be applying for another card, as I was approved for the Low Fee Commbank one. Apparently, applying for multiple lines of credit in quick succession can look bad, so I plan on just keeping this credit account open for a long time and paying it off on time (I won't spend much on it anyway), which can't really hurt.

          I'm sure that link could help others though :)

  • Gina Rinehart on 02/01/2013 - 02:44

    Just applied for a Commonwealth Bank Low Fee Credit Card, no fee as I hold an eligible account already. Hopefully that gets approved. It would be nice to get some sort of backing and credit history. If I can't even apply for a basic credit card like 28 degrees, then imagine the struggle it would be to get a loan or something.

  • Eurokids on 02/01/2013 - 08:12

    Hi I subscribe to a newsletter with the barefoot investor "Scott Pape" he is a financial advisor and is sort of geared towards young people starting out check it out http://barefootinvestor.com/ I'm sure I read on one of his newsletters that credit card to get a credit rating is the worst and you can build a credit rating by saving into an account. From my experience I reckon hold off getting one as long as you can they are trouble we all start off with the best intentions but its easy for it to get out of control good luck

  • Geewhizz on 02/01/2013 - 08:21

    You can do simple things such as having the newspaper delivered (pay weekly or monthly or whatever) to help establish a credit rating. Do you have a phone on a plan? If so, this will also count towards a credit rating.

    • mintysaurus on 02/01/2013 - 10:43

      I've been living out of home for 5 years. Everything has always been in my name. I got a copy of my credit rating the other week…..there's only one thing on it, a contract for an iphone years back.

      I can't believe how little positive stuff gets recorded, so I got a credit card.

  • c64 on 02/01/2013 - 10:07

    i imagine a credit card would be considered a liability when it comes to a loan. i think the lack of a credit history is not a bad thing in australia. unless you specifically need a credit card then i think you are silly to apply for one.

    • Gina Rinehart on 02/01/2013 - 12:55

      I am fairly sure if you have a good history with paying off a credit card, it will improve your credit rating. As long as you don't go over the limit or fail to pay it off somehow, it is fine to have.

      A friend of mine has one, and uses it for day to day purchases just like a debit card, pays it off every week during the interest free period and that's improved his rating nicely.

      Also I got an email from Commonwealth bank, I got conditionally approved for $10000 lol. I don't need nearly that much so I am going to request it to be reduced I think (unless I can change the daily limit, mainly for security purposes)

  • No on 02/01/2013 - 14:26

    Lots of misinformation here. Unlike in the US our credit reports just list applications and bad stuff. So your only really establishing a credit rating with which ever bank issues the card.

    Sample credit report: http://www.mycreditfile.com.au/dotAsset/525318.pdf
    FAQ: http://www.mycreditfile.com.au/faq/#Whats_in_your_credit_fil…

    P.S don't give these guys any money, they legally have to provide a copy of your credit report if requested they just make you jump through a couple of hoops.

    • Gina Rinehart on 02/01/2013 - 23:12

      I think you are right to a certain extent. If I was applying for multiple sources of credit in a short time-frame, it would make my credit rating quite poor, however, now that I have something properly set on paper that I can pay bills on time and such, if I keep the account open for a while and everything is all sorted, it will improve my chances in the future of getting approved for loans and such (according to basically every article I just read on multiple sites).

      Also, I have quite a lot of savings so that will probably contribute more to my ability to get credit in the future than a card, but it's nice to have the proof here as well.

  • rewardscompared on 03/01/2013 - 09:57

    Virgin have a fee free card with up to 44 days interest free

    http://virginmoney.com.au/credit-card/

    If it's your first credit card, my tip would be to start out on the right foot and automate the full payment on the due date so you never pay any interest. Also make sure your credit limit is lower than your average salary and if possible set the payment date a couple of days after pay day. Make 100% sure you always pay it off, and don't get tempted to use it to buy things when you don't have the money. Read more tips here http://rewardscompared.com/tips

    • Gina Rinehart on 04/01/2013 - 01:37

      Well, I use OzBargain, and as you may assume from an avid bargainer like myself, I don't like spending too much money.

      I have a crapton of savings to fall back on anyway. I won't use this credit card any more than I would a debit card, and I'll treat it just like a debit card (obviously making payments/etc on time).

      To be honest, I probably won't use it unless there is no paywave terminal, as I get an extra 5% off on my ING card when using paywave. It's easy to just hit credit on a credit card at old terminals, and it doesn't require pin or signature (at some stores at least, like woolies - my local one still has old pinpads lol).

      But in the end, I won't be utilising my whole credit limit - ever. I don't spend or earn enough to even worry about buying a TV or something on credit. I'm not silly :)

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