Card for 18 year old

callum9999

Zack1 wrote: »

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:


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

Actually, Nationwide said that about an overdraft, not a credit card. I was also just keeping my HSBC account open in case it helps me later on, if thats anything to go buy, maybe it won't make much of a difference (the interest on that account is 0% so I rarely keep much money in it). No harm in keeping it open empty though.

Zack1

MrTomato wrote: »

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.

Vanquis seems to be your best option then, followed by Capital One. But I really think you've misunderstood the situation or that your friends who were declined have some fundamental errors with their credit report (not being on the electoral roll for example) or have made errors in their application. I'm at university now and I don't know anyone that had trouble getting accepted (a lot of them are with Natwest though so that may say a lot). Some of us got rejected from Halifax, but I know nobody who is in the situation where they can not get any kind of overdraft at all

I think you are worrying about the credit rating too much in terms of a student account, but beware that recently opened accounts could be detrimental to your overdraft application. Having too much available credit in relation to your income is also a problem, so if you have one card they'd think long and hard before giving you a high overdraft

callum9999 wrote: »

Actually, Nationwide said that about an overdraft, not a credit card. I was also just keeping my HSBC account open in case it helps me later on, if thats anything to go buy, maybe it won't make much of a difference (the interest on that account is 0% so I rarely keep much money in it). No harm in keeping it open empty though.

I'm surprised your internal score makes no difference at all though, overdraft or credit card. Yea I have a empty Halifax one still open, I don't thinnk I've ever used the debit card they sent me, it can't have an adverse affect though, so I'll leave it open

MrTomato

Just to update, I've been accepted for a card off my current bank (Lloyds TSB) with a limit of £1000.

Kavanne

well done, mate. Use it wisely!

Zack1

MrTomato wrote: »

Just to update, I've been accepted for a card off my current bank (Lloyds TSB) with a limit of £1000.

Wow, that's a lot for someone that hasn't had credit! Well done though!:beer:

*Vikki*

Go with your bank, I was just 18 when I got my first credit card with HSBC, then was a bit if a tart card holder and went with a few others, dropped them and still with HSBC

Degenerate

MrTomato wrote: »

Just to update, I've been accepted for a card off my current bank (Lloyds TSB) with a limit of £1000.

Now you've got one, the best way to run it is to put all the your spending on it (but no more than you can afford) and pay it off in full every month.

MrTomato

Yeah, the limit seems worringly high, and I won't be going wild with it. I need to spend £100 in 3 months, which is fine since my first thing to buy on it will be my passport for about £80.

Zack1

MrTomato wrote: »

Yeah, the limit seems worringly high, and I won't be going wild with it. I need to spend £100 in 3 months, which is fine since my first thing to buy on it will be my passport for about £80.

I think you may be better off asking them to reduce the limit *if* you don't need it. Obviously it depends on your spending pattern whether you need it or not, and the last thing you want to do is reduce it then find out you need it – but it may be worth considering. For example I can't wait until my Capital One limit goes up because I max out both cards every month, but then one of my mates just uses it for petrol so doesn't spend anywhere near what I do on the card.

But if you aren't going to use it, I'd certainly try and get it reduced, maybe to £750 or £500, purely because when you apply for things in future they will look at your available credit in relation to your income, and too much available credit is seen to be a bad thing. Also if you have a lower limit there is less temptation!

callum9999

*Vikki* wrote: »

Go with your bank, I was just 18 when I got my first credit card with HSBC, then was a bit if a tart card holder and went with a few others, dropped them and still with HSBC

Any idea what your credit limit/income was?

I'm considering giving this a go now but I was trying to limit my credit searches as I have done quite a few already. I will be out of the country for 7 months early next year - would I be right in thinking any searches on my account that I do over the next couple of weeks will all disappear from my record by the time I come back (i.e. after 6 months)?