Looking to build a credit rating

The_Joker_4

Hello

Just turned 18 a few months ago and looking to build some credit rating

Should I apply for a credit card or maybe go for a contract phone my father's profession is an accountant and I understand the value of money.

My father thinks I should go for a contract phone and not get a credit card.

Thoughts?

JayZed

Nothing wrong with getting a credit card as long as you use it responsibly, i.e. pay off the balance each month, don't use it for cash advances, don't splurge when you can't afford it.

DipStick

The_Joker wrote: »

Hello

Just turned 18 a few months ago and looking to build some credit rating

Why do you want a credit rating? So you can borrow money in the future? If so, borrow money for what? If you know for what, how about starting to save now for it so you don't have to borrow. You're 18: if you start out now with the intention of borrowing for whatever you want ask your dad to work out how much interest you might end up paying over a lifetime!

So8py

DipStick wrote: »

Why do you want a credit rating? So you can borrow money in the future? If so, borrow money for what? If you know for what, how about starting to save now for it so you don't have to borrow. You're 18: if you start out now with the intention of borrowing for whatever you want ask your dad to work out how much interest you might end up paying over a lifetime!

I'm 19, I save and I have a credit card too, I pay it off in full, every month, I count it as 10 days intrest free spending. Long as you pay it off, your fine and come mortgage time, will get better deals. Good way to learn to manage money and remmebering to pay credit off imo.

The Joker, I got a credit card just before my 19th birthday, I got it with the Halifax, the intrest is 27.9% AER and I got a limit of £250 as I have only been in a decent full time job for a month when I applied. :cool:

Don't get a contract unless you spend large amounts on your phone! Otherwise, when you come to pay it off you might not have it, where as a credit card, you can cut it up.

The_Joker_4

DipStick wrote: »

Why do you want a credit rating? So you can borrow money in the future? If so, borrow money for what? If you know for what, how about starting to save now for it so you don't have to borrow. You're 18: if you start out now with the intention of borrowing for whatever you want ask your dad to work out how much interest you might end up paying over a lifetime!

Your right I have given thought and looked at some of the many posts people whom have lost control with there credit cards and have alot of debt. My file at Experian I only have 1 account on there my HSBC current account with OD and have never missed any payment or used my OD.

So over time if I look after this account it will increase my rating.

I am looking to save for a deposit on a house and thought gaining a credit card and paying it off will look good when I take the plunge in a few years when buying a house.

DipStick

The_Joker wrote: »

I am looking to save for a deposit on a house and thought gaining a credit card and paying it off will look good when I take the plunge in a few years when buying a house.

If you are responsible and well organised, which it sounds as if you are, then getting a credit card, using it occasionally and always paying off the balance by the due date sounds like a good idea, specially if you get one of the cash back cards. But don't buy anything you wouldn't have bought anyway just because you've got a credit card!

The_Joker_4

Thank's everyone for giving your thoughts I'll pass on a credit card for the moment and have a rethiink maybe in a years time or longer.

Like my father told me last night if I get a credit card what happens I will just waste money and that money could have gone for my house deposit.

My father has given me a great life and as his son he's always right.

Reading some threads on these boards have opened my eyes reading the many posts of peope looking to pay there debts I feel silly in wanting a credit card.

DipStick

Sensible decision.

KingPin_2

The_Joker wrote: »

Thank's everyone for giving your thoughts I'll pass on a credit card for the moment and have a rethiink maybe in a years time or longer.

Like my father told me last night if I get a credit card what happens I will just waste money and that money could have gone for my house deposit.

My father has given me a great life and as his son he's always right.

Reading some threads on these boards have opened my eyes reading the many posts of peope looking to pay there debts I feel silly in wanting a credit card.

smart move