Starter Credit Cards

An introduction to credit cards for beginners

Have you recently made the decision to apply for a first credit card? Perhaps you’re looking for the best credit card for first time users, or good credit cards for beginners?
Knowing where to start when searching for the right credit card for you can be confusing, and it’s understandable that you might be feeling overwhelmed by the vast choice of credit cards and their different benefits.

If you’re looking to apply for a first credit card, we’d love to take this opportunity to tell you more about the thimbl. Credit Builder Credit Card and why it could be considered a good starter credit card.

Applying for your first credit card

If you’ve never borrowed money or paid bills in your name before, it’s possible you have little to no credit history. This is known as having a ‘thin’ credit file.
A thin credit file could negatively impact your chances of getting approved for credit products, such as a personal or car loan, or even a mortgage. This is because lenders have no evidence of how you have managed credit in the past and could therefore see lending to you as riskier.

When used responsibly, the right starter credit card could help you establish and build your credit score. Using your starter credit card to make small, manageable purchases, and paying at least the minimum repayment amount due each month could, over time, contribute to an improved credit score.

Whether applying for a starter credit card is a decision you’ve been pondering for some time, or something you’ve only recently thought about, you’re going to want to make sure that you choose the best first credit card for your needs and circumstances.

Things to think about before applying for a starter credit card

There are several things to think about before you apply for a credit card for beginners.

Types of credit card

It’s a good idea to set some time aside to do your research and look into the different types of credit card available before deciding on the best first credit card for you. We’ve included a brief description of some of the most common credit card products below.

Credit builder credit card

Credit builder cards are designed to be a suitable credit card for beginners. They tend to come with a low starting credit limit to encourage responsible spending, and in time – when used sensibly alongside other credit-building methods - could help boost your credit score.

0% purchase credit card

These credit cards often come with a promotional period of interest-free spending. Once the promotional offer comes to an end, any outstanding balance will be charged at the standard interest rate.

Balance transfer credit card

This is not a credit card for beginners, as they’re designed for borrowers who want to move the balance of an existing credit card(s) onto a new card with either a low or 0% interest period. Any outstanding balance will be charged interest at the standard interest rate when the promotional period ends.

Annual Percentage Rate (APR)

The Annual Percentage Rate (APR) on any credit product refers to the overall annual cost of borrowing, including interest, but does not include any additional charges, such as late fees. The lower the APR, the less interest you’ll be charged on an outstanding balance. Having no credit history could mean that if you’re offered a credit product, it could be at a higher interest rate than a standard credit card.

Fees

Before you make a commitment and sign a credit agreement, you should be aware of any fees you could be subject to, such as a late repayment charge or fees for using your card abroad.

Introductory offers

Some credit cards, such as 0% purchase and balance transfer credit cards, may come with an initial introductory offer, such as a promotional low or interest-free period. Remember, once the promotional period ends, any outstanding balance, as well as future purchases, will be charged interest at the standard rate; make a note of when any introductory offer expires so you’re prepared.

Credit limit

Your credit card’s credit limit is the maximum amount of money you’re able to borrow. You don’t need to use the full amount and should only spend what you need and can afford to repay.
The thimbl. Credit Builder Credit Card has a personalised starting limit between £500 and £1,200.

What are the best credit cards for beginners?

The best credit card for first time users will depend on your individual circumstances.
The starter credit card that suits one person might not necessarily be a good starter credit card for another. It’s important to do thorough research and familiarise yourself with the product details before you make an application.

The thimbl. Credit Builder Credit Card could be an ideal first-time credit card for people with no credit history.

Why choose thimbl. for your first credit card?

Are you hoping to boost your credit score?
Maybe you’re searching for the best first credit card to build credit?
The thimbl. Credit Builder Credit Card could be a suitable starter credit card for you – here are some reasons you might want to choose us.

• We’re rated Excellent on Trustpilot, with over 3,000 5-star reviews.
• We’re powered by Vanquis Bank Limited and together we’ve said yes to over 150,000 customers.*
• Get peace of mind by checking your eligibility in just 60 seconds.
• People with all credit scores are welcome to check their eligibility for a starter credit card.
• Choose a monthly repayment date to suit you.
• Manage your thimbl. Credit Builder Credit Card on the go with our highly-rated mobile app.

*As of August 2024.

I’d like to apply for the thimbl. Credit Builder Credit card as my starter credit card. How exactly does it work?

The thimbl. Credit Builder Credit Card works in the same way as other credit cards.
Use the thimbl. Credit Builder Credit Card to make small, manageable purchases, and repay at least the minimum amount due each month. If you can comfortably do so, try and pay more.
It’s important to stay within your credit limit by only spending what you need to and what you can afford to repay.

Your repayment history will be reported to the credit reference agencies and, in time, you could notice an increase in your credit score.
The thimbl. Credit Builder Credit Card works best when used alongside other credit-building methods, which we’ll talk about in more detail later.

Who can get a starter credit card?

Every credit card provider will have their own eligibility criteria that must be met before you can apply for a starter credit card.

You can apply for the thimbl. Credit Builder Credit Card if you:

• Are over the age of 18;
• Are a UK resident with at least three years’ UK address history;
• Have a UK bank account with a valid debit card;
• Are employed, with a regular income; and
• Are not bankrupt and do not have any Individual Voluntary Arrangements (IVAs) on your credit file.

How to apply for your first credit card with thimbl.

Here at thimbl., we understand that applying for your first credit card can be a minefield. We aim to keep things as straightforward as possible, and we won’t confuse you with financial jargon or lengthy paperwork.
Our online application form should take around five minutes to complete and can be filled in at a time and place that suits you.

Here’s what you can expect from the thimbl. journey when you apply for a first credit card:

1. Complete our online form. You’ll be asked to provide details such as your address history, employment status, and income.
2. We’ll run a soft search on your financial profile, based on the information you’ve provided.
3. If you’ve been pre-approved**, you’ll be redirected to our partner, Vanquis Bank Limited, who will run some further checks, including a hard credit search.
4. If Vanquis Bank Limited are happy with the outcome of their checks, you’ll be sent a credit agreement. Take some time to carefully read through this before deciding if this is the right credit card for you.
5. Should you choose to go ahead, you can sign and return the agreement, and your starter credit card will be sent to you in the post.

**Please be aware that pre-approval does not guarantee acceptance and is subject to further checks carried out by the lender, including a hard credit search.

Other ways to build your credit score

If you’re looking to apply for your first credit card to improve a thin credit file, you might also be interested in other ways to establish and build your score.

1. Register to vote. Being on the electoral roll will make it easier for potential lenders to verify your personal information, such as your name and address.
2. Try to keep credit applications to a minimum. When you apply for credit, the lender will carry out a hard search on your credit profile. Too many hard searches within a short period of time could have a negative effect on your credit score. Additionally, a hard search will remain visible on your credit file to other lenders and credit brokers for up to 12 months.
3. Ensure that all your bills are paid on time each month, every month.
4. If you do decide that a credit card is the right option for you, be sure to stay well within your credit limit. You’ll be required to make a minimum monthly repayment amount; where possible, try to pay more than this to reduce your balance quicker.
5. Check your credit report for errors.

How to check your credit report

You can check your credit score and report with any of the following credit reporting agencies:

• Equifax.
• Experian; and
• Transunion.

Please be aware that TransUnion and Equifax charge a fee for their services once the initial free trial period has expired; if you don’t want to continue with your membership, you’ll need to contact the company directly to cancel your subscription.
Experian is currently free to use.

If you do notice that any of the information on your report is outdated or incorrect, you should contact your credit reference agency and ask that it’s amended.

Could a credit card harm my credit score?

Any credit product you take out will impact your credit score; whether this is a positive or negative impact is down to how you manage your borrowing. If used sensibly and repaid on time every month, you could see an improvement to your score; on the other hand, any late or missed repayments could damage your status. A low credit score could make it difficult to be approved for credit in the future, should you need it.

If you find yourself in a position where you’re unable to make your repayments, you should contact your card provider as soon as you can. They will discuss any options that may be available to you and will work with you to put a plan in place moving forwards.