HELP! Just Turned 18, I'm soooo confused!

Star2018

I have just turned 18, I have no idea what I need to do! Where do i start? Any good ones to go for?

Current account?
Overdraft?
credit score?
credit card?

Lokolo

Overdraft - No
Credit Card - No

You are more likely to end up in debt.

For a current account you could go with Lloyds TSB where you get a VISA debit card. Or go with HSBC and get a maestro solo card.

Are you in employment of education?

Star2018

Employment. Whats the difference between solo, visa etc.

Barneysmom

Always say no to cc, why would anyone want to live in debt?
There are interest free ones but it's too easy to spend on them IMO.

Try to live without an overdraft - they weren't so common when I was 18 and have learnt to do without one.

Yup Lloyds TSB are always a safe bet,

Lokolo

katieg543 wrote: »

Employment. Whats the difference between solo, visa etc.

Nothing really. VISA is more often widely accept against Solo. But I have always preferred HSBC as a whole. Hence why I have both

If you are employment you might want to look up savings accounts? Better your spare income be somewhere growing rather than sitting in a current account.

Kavanne

Er, you don't HAVE to get in debt with a CC! When I was younger I had a CC with a limit of just £700 so i COULDN'T get into unmanagable debt as I always had savings more than that...

Surely getting a credit card is good to start building a credit history?

marshall2k

Agreed! Use a credit card and pay it off in full each month. They are a financial tool and not to be scared of!

tom555tom

not overdraft too easily raised but hard to pay off.
just get yourself a cc for emergancies

PROLIANT

In order to get anywhere in this life you need a credit rating, a good one at that so start with a low limit card from Barclaycard or Capital One or whoever will give you one and use it sensibly, also try a bank that has good branch service as well as online service and keep within the terms of the account and this will also improve your credit over time as it shows that you are in control of your finances, this all means when you go for a car loan and or mortgage you will get the best rates on interest and deals etc.
Good luck.

CLAPTON

you need a current account so your income can be paid into it and so you can pay direct debits, bills etc.

you need a cash or debit card so you can spend you money in shops, bars etc... a full debit card is a lot better than a solo / electron card as they are more widely accepted.

a small Over draft (say £100) is advisable in case you accidental go overdrawn .. you may be charged interest but not charges.

a credit card is useful; for building a credit rating as long as you set up a Direct debit to pay the full amount each month so you never pay interest

a budget is essential so you know what you can afford to spend

never borrow money (except for a mortgage)... don't be influenced by friends who spend like water with borrowed money...

always save part of your income however small to pay for those yearly or one off things... presents, holidays, trips out, clothes, etc.

and once again whatever you don't borrow (especially for that car... that looks so attractive but costs lots of money to buy and tax, insurance, petrol, servicing etc )

username

Don't pay with direct debits unless you have to, and only where the amounts will be fixed. Pay manually via internet banking and/or by taking the bill to the bank/post office to pay it.

You should never live permanently in your overdraft. Only touch it one or twice only when you need to. Do not ever overdraw your overdraft - you will be stung with charges and it does not look good on your history with that particular bank, and possibly, your credit file.
The overdraft is the bank's money, and they can ask for it to be repaid at any time.

If you are going to use a credit card, then pay it off in full every month. I prefer to do it the old fashioned way, withdraw cash and then pay it in the branch. That means my account is cleared by the next day, and the bill is paid off. I would suggest a direct debit is a risky way, as if you have a shortfall in your current account, and they take it for the full amount and if you have no overdraft or little overdraft left, then they will levy charges.
And remember, the credit limit on your credit card is the bank's money.

But don't think credit cards are all bad - they offer additional protections when you purchase items on them, in that if the items are defective etc and the retailer won't budge, then you can apply for a chargeback. Same for those that have went bust before you have received your items, especially if you are using internet/phone/mail order.

It maybe a pain in the bum to do stuff manually, but I prefer to have control over what goes in and out of my account, rather than leaving it to the mercy of my utility companies/credit card firms etc to help themselves.