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How To Get Credit Card In the United Kingdom

If you are new to the UK, you will all notice that there are a few differences when you get a credit card in the UK. Here we explain what you need to know about foreign transaction fees, how to plan your trip abroad financially, and choose the right credit cards for you. [Sources: 3, 8]

You can also use a prepaid credit card, but you may be limited by the number of credit cards offered and the amount of credit you can get. Alternatively, you can purchase a prepayment card and use it as a credit card. If you have a debit card but don’t get a credit card approval or if you need a card to buy cash-free purchases – then debit cards can be just as effective for you. [Sources: 5, 13, 16]

You can use the Shopify card reader to accept credit card payments from anywhere in the world based on your business, and you can even use it in other countries. [Sources: 0]

How To Get Credit Card In the United Kingdom
How To Get Credit Card In the United Kingdom

The card reader supported by Shopify can accept payments from anywhere in the world with embedded chip and PIN technology. The card is connected to Visa, MasterCard, American Express, Discover and Mastercard credit cards and can be used wherever credit cards are normally accepted. [Sources: 0, 7]

None of these cards have foreign transaction fees, but they come with a fee that you can pay in cash, dollars or pounds. If you often use credit cards when travelling abroad, a travel card can help you to save on fees for international transfers. [Sources: 3, 10, 12, 17]

While some credit cards have annual fees, others expect you to pay an amount for membership each year. Although you may often have higher interest rates on a balance, a credit card is a good way to build up your credit history if you use it responsibly. A credit card can help you build up your credit history so you get better interest rates from lenders on the street. [Sources: 8, 11, 13]

Using a credit card irresponsibly is also an easy way to get stuck in a big debt pile and cause you a lot of trouble. [Sources: 14]

A good credit card for low-credit cardholders is a secured card that requires a cash deposit, which is refunded after upgrading or closing the card in good condition. Except for secured credit cards, a deposit must be paid before opening a card account. If you close your card or the issuer decides to switch to an unsecured credit line (which most people think of as a credit card) and you don’t have enough money in your bank account, you will get the deposit back. If you use a bank card, you can withdraw money from your account if you have no outstanding debts and the cards are rejected because you did not have enough money in the bank account. [Sources: 1, 2, 5, 15]

Some banks also offer new customers a small amount that can be easily paid, which can be an alternative to applying for a credit card, especially if you only need it for a few days. Some banks even offer a one-off payment of 1.5% of your monthly income to a new customer into your bank account, which is another alternative for you to apply for credit cards if needed. [Sources: 9]

If you are a first-time borrower who gets a credit card, then the credit card is a good option for you. If you are a beginner in credit cards, read our guide to choosing a credit card to learn more about the different options available to you in the UK. You should be able to take the first step and continue to work on receiving your very first credit card. Even if you may not be able to, if you have credit cards for a while, you should still pack them, so you should not worry too much about getting a very low-interest rate or even a low balance. [Sources: 2, 16]

If you are from the UK and have never owned an American Express card, follow the steps above to create your credit history in the UK so that you can eventually apply for an Amex rewards card (Amex or not). It is worth keeping your credit card with you if you plan to return to the US at some point, but it is not worth keeping it open and active. [Sources: 4, 6]

If you have large credit cards and want to take advantage of a credit card, you should consider a reward or cashback card. American Express has several cash-back credit cards that allow you to earn cash back on a variety of purchases. Credit cards are used to purchase things and, like debit cards, allow you to shop online and access services that cannot be accessed with cash or cheques. You can also use a debit or debit card if you forget to take your cash from an ATM and need to use it to get out. [Sources: 1, 5, 7, 14]

Sources:

[0]: https://help.shopify.com/en/manual/sell-in-person/pos-classic/hardware/card-readers [1]: https://www.internationalstudent.com/study_uk/living_uk/money_matters/ [2]: https://www.nerdwallet.com/the-best-credit-cards [3]: https://www.creditcards.com/no-foreign-transaction-fee/ [4]: https://www.vanquis.co.uk/understanding-credit/financial-problems/overseas-uk-credit-rating [5]: https://www.novacredit.com/resources/credit-cards-for-non-u-s-citizens/ [6]: https://onemileatatime.com/how-to-obtain-credit-in-the-united-kingdom/ [7]: https://www.tripsavvy.com/bringing-spending-money-to-the-uk-1662407 [8]: https://www.luma.co.uk/credit-cards-ratings-guides/credit-cards-life-stages/expat-credit-cards [9]: https://www.moneyadviceservice.org.uk/en/articles/getting-credit-for-the-first-time [10]: https://championtraveler.com/guide/travel/paying-in-uk-best-credit-cards-and-more/ [11]: https://www.usa.gov/credit-cards [12]: https://uk.usembassy.gov/visas/non-immigrant-visa-fees/ [13]: https://www.investopedia.com/applying-for-a-credit-card-without-a-social-security-number-4684660 [14]: https://www.fool.co.uk/mywallethero/credit-cards/best-credit-cards/ [15]: https://www.nytimes.com/wirecutter/money/immigrants-build-credit/ [16]: https://www.money.co.uk/credit-cards/how-to-get-your-first-credit-card.htm [17]: https://www.finder.com/using-a-credit-card-in-the-united-kingdom

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