Card for 18 year old

MrTomato

Hello.

I don't want to sound like an arrogant twart, but if you're going to comment saying something like "don't get a credit card you'll end up with loads of debt/on a slippery slope" then don't bother commenting. I am fully aware of what happens with credit cards and again, without wanting to sound like a prat, don't want to be patronised like that.

Basically, having recently turned 18, I want to build a credit rating. Reason: When I get a student account next year I want to be in the best place to get a good overdraft for university time.

Can anyone recommend any cards. I don't really want to go down the prepaid route either.

I've looked at Capital One's most basic card for people with poor/little history, but it asks to have at least some history, even if bad, to start off with. Barclaycard Initial is asking for 10k annual income too, but mine is probably more like 7k.

Any advice?

Thank you.

michael1983l

I'd start with the bank that provides your current account, they will be the only ones who have any history on you so they should be the easiest to get providing you have run your accounts correctly.


On a side note, please be very careful with credit as when I was 18 I wanted to do pretty much the same as you and ended up in mountains of debt. That might just be my personality but my only advice is always pay your bills ontime. I know that sounds obvious but I thought the odd late payment didn't matter when I was 18.

Zack1

As Michael has said above, the bank that gives you your current account would be easiest at first. I went to Natwest first (been with them since I was 12), after a few months of paying that back (along with my o2 contract) Capital One have approved me so I've got 2 now, but Capital One rejected me at first, and you want searches on your file to be kept to a minimum so I'd only try Capital One after you have a decision from your bank, and only then if you think you needed and could handle 2. Try to keep your file clear in terms of searches/missed payments etc in the 6 months leading up to your Student Account application (well missed payments at any time!)

callum9999

I would be careful about going to your bank. Invariably, they give out the "mainstream" cards and expect you to have a good credit history - something you won't have at 18 regardless of whether you bank with them. All 3 of my banks have also told me my long standing current accounts have no bearing on the application as they aren't credit accounts.

I got a Vanquis card with no credit history and no income - maybe thats easiest. I got rejected from Capital One initially but when I started working I applied again with a reasonable income (and 4 months of good history with Vanquis) and they then accepted me.

JasX

I'd check the Ts and Cs on the student overdrafts and talk to your bank -generally those taking student accounts aren't expected to have any kind of credit history so you might well be able to get whatever the standard student overdraft offer is without worrying about getting a credit card in advance....

would you plan to use the credit card at all? if you just want a history of credit getting one and putting away in a drawer and never using it will do just as good a job.

also could you not ask for a small overdraft and use that to establish a credit history?

Lokolo

Also bare in mind, having a decent credit rating might do more harm than good. Banks give out big overdrafts to those that are in a neutral zone, so never have credit before, as they will then spend it all and then owe a lot more to the bank.

Those who have perfect credit ratings are obviously good with money are more likely to stooze, so won't get decent overdrafts (Halifax namely).

freesha

When I was first at uni aged 18, I had no credit history, zilch - unless you count 2 years' worth of a solo account for my Saturday job pay

However, I got an overdraft of £1k on my student account, it's pretty standard for student accounts, credit history or not. HTH.

Zack1

callum9999 wrote: »

I would be careful about going to your bank. Invariably, they give out the "mainstream" cards and expect you to have a good credit history - something you won't have at 18 regardless of whether you bank with them. All 3 of my banks have also told me my long standing current accounts have no bearing on the application as they aren't credit accounts.

callum9999 wrote: »

I got a Vanquis card with no credit history and no income - maybe thats easiest. I got rejected from Capital One initially but when I started working I applied again with a reasonable income (and 4 months of good history with Vanquis) and they then accepted me.

I’d disagree about internal ratings not making a difference, someone from Natwest’s Customer Relations said it did make a difference when I asked. And I’m pretty sure that’s why I got both the credit card and account

That's a good point about mainstream cards though. I assumed the OP was going for a student card like me. MrTomato are you going for a Student Credit Card (i.e. "Natwest Student Credit Card") or just a normal mainstream credit card? If you are going to your bank for just a normal card you've got very little chance, wait until you are eligible for the Student Card that your bank offers (normally they offer them when you get a student account, I know Natwest do). That will be later in the UCAS cycle. If you get a student account with your bank you don’t really need to worry about building up a good history (I know someone with missed payments who’s been accepted with their own bank but had a lower limit for first few months). It’s if you want to change banks that it makes more of a difference (Halifax etc), but even then I can't work out why Halifax are so harsh, a lot of banks used to be falling over themselves to attract students, maybe it's the recession

JasX wrote: »

I'd check the Ts and Cs on the student overdrafts and talk to your bank -generally those taking student accounts aren't expected to have any kind of credit history so you might well be able to get whatever the standard student overdraft offer is without worrying about getting a credit card in advance....

JasX wrote: »

would you plan to use the credit card at all? if you just want a history of credit getting one and putting away in a drawer and never using it will do just as good a job.

also could you not ask for a small overdraft and use that to establish a credit history?

It depends what bank you are with. I know loads of people that have been accepted with Natwest (some of them used to bank with other banks too, and had no credit history). I don't know if Natwest credit score you or not. A few do credit score you though (I know Halifax and HSBC do if you are a new customer, I failed credit scoring for both of them).

callum9999

Zack1 wrote: »

I’d disagree about internal ratings not making a difference, someone from Natwest’s Customer Relations said it did make a difference when I asked. And I’m pretty sure that’s why I got both the credit card and account

That's a good point about mainstream cards though. I assumed the OP was going for a student card like me. MrTomato are you going for a Student Credit Card (i.e. "Natwest Student Credit Card") or just a normal mainstream credit card? If you are going to your bank for just a normal card you've got very little chance, wait until you are eligible for the Student Card that your bank offers (normally they offer them when you get a student account, I know Natwest do). That will be later in the UCAS cycle. If you get a student account with your bank you don’t really need to worry about building up a good history (I know someone with missed payments who’s been accepted with their own bank but had a lower limit for first few months). It’s if you want to change banks that it makes more of a difference (Halifax etc), but even then I can't work out why Halifax are so harsh, a lot of banks used to be falling over themselves to attract students, maybe it's the recession


It depends what bank you are with. I know loads of people that have been accepted with Natwest (some of them used to bank with other banks too, and had no credit history). I don't know if Natwest credit score you or not. A few do credit score you though (I know Halifax and HSBC do if you are a new customer, I failed credit scoring for both of them).

Thats interesting. Alliance and Leicester, HSBC (who I've been with since the age of 10) and Nationwide (who I've been with since about the age of 6!) all said those accounts won't play any role as I don't have any credit facilities on them. Maybe Natwest is different then (or the people I spoke with didn't fully understand the criteria?).

Zack1

Lokolo wrote: »

Also bare in mind, having a decent credit rating might do more harm than good. Banks give out big overdrafts to those that are in a neutral zone, so never have credit before, as they will then spend it all and then owe a lot more to the bank.

Those who have perfect credit ratings are obviously good with money are more likely to stooze, so won't get decent overdrafts (Halifax namely).

That's a good point, I think that's why Natwest try to force credit cards onto us (I know a few people that have been pressured into signing up despite saying they never want a credit card). If students miss payments, go over the overdraft limit etc then that gets the bank more money so that's probably a factor. If someone has a string of accounts it shows they are reliable so the bank will get their money back, but they won't make much (if anything). Capital One seem to have that attitude too, that they'd rather a more risky customer as they'll get more money :mad:

callum9999 wrote: »

Thats interesting. Alliance and Leicester, HSBC (who I've been with since the age of 10) and Nationwide (who I've been with since about the age of 6!) all said those accounts won't play any role as I don't have any credit facilities on them. Maybe Natwest is different then (or the people I spoke with didn't fully understand the criteria?).

That's really strange about those 3 (and I've got an A&L account, it's got good interest at the moment, but I was hoping it might help if I ever want their credit card!). I only know about Natwest, but thought all lenders used an "internal score" in addition to your credit report, especially for students as most of us don't have any kind of history. For example if you have Direct Debits that are setup on your account and always bouncing then you'd have a lower internal score than somebody who paid all their Direct Debits on time - even though neither of those involves credit (unless you pay one using an overdraft). It doesn't directly say you that you won't be a fool when they give you credit, but previously running accounts well certainly gives a pretty strong indication that you'll be sensible

OP one of my friends never applied for a Student Account back in the summer, I told her to go to Natwest the other day to get the overdraft she needs (and she doesn't normally bank with Natwest). They've given her a grand, so they certainly seem the least harsh in my experience. Unlike Halifax, who declined me and 4 or 5 others I know

MrTomato

I just want a standard card. I think it can and does make an effect on student overdrafts. Many of my friends who went to uni last year (well, 2009 entry) never had credit and had trouble getting higher overdrafts.

Some of them even got rejected outright for an overdraft (and yes, this was on a student account) due to lack of credit history.

I don't want to be in that situation as I already know uni will be tight.