18, in education need a card for insurance

rpsep2

hi,
my car insurance is due for renewal and i would like to try and pay it off in a lump sum, rather than getting the crazy interest rates for paying monthly ( a 980 lump some turns into 1400 total for paying monthly).

problem is im 18, with an income of 4k a year due to being in full time education.

what sort of card can i get? and with what limit?

i can find maybe £200-300, so ideally need a card with £700+ limit.

can i get this anywhere or am i going to have to pay monthly?

thanks for any help

Tixy

Do you have any existing credit history at all? have you any loans, an overdraft or a monthly phone contract? If you have any of these you will have started to build up a credit history, if not then lenders will know nothing about you. That might make it hard to get anything other than a subprime card (which will probabky have a higher APR than the insurance company would charge).

You might be able to get a student card, not sure what limit you would get. Often a good place to try first is the bank where you have your current account (providing you have run that well.)

rpsep2

thanks for reply.
i have had no loans or similar at all.
i do have a phone contract, but im pretty sure its in my mums name as at the time of getting it i didnt have any income.

Edit: my bank accoutn has been run well i think, never been overdrawn and money has always been moving in and out constantly.
message i seem to be getting from everyone is im guna have to pay monthly. i can afford this fine, but its just such a rip off.

moving on, would it be worth getting a card to pay for say fuel, and pay it off in full each month to build my rating, so maybe next year i can get a better card to pay insurance?

thanks

Any

Unless your bank account has overdraft that is no use to you. They need to see how you manage your DEBT. Though sometimes if you are looking for first card it is always suggested to start with your bank, because they can also look on your current account on the top of your credit report.

However - your income might make even this impossible.

What kind of education? Maybe you can get student card?

Yes, getting high % subprime credit card would otherwise be the best bet - just use it then for every day buys and pay in full every month - that will help to build up your rating.

It will take a time though. Anything between 6-12 mths.

rpsep2

thanks for all the help, ill go into my bank and speak to someone about my options.

i hate insurance! cant wait till im old:o

Jakg

You wont get a 0% card, and the highest limit you'll get will be about ~£400 on the BarclayCard Inital.

A non-0% card will cost you more than paying monthly.

Only "easy" was out is Student 0% overdrafts.

~Brock~

rpsep2 wrote: »

i hate insurance! cant wait till im old:o

Trust me on this........when you are old you will wish that you were still young

williham

It's not nearly as much as you say it is anyway - unless you're accepted for a 0% card, it would be more expensive on the credit card.

CLAPTON

sadly, the problem here is why does some-one with an income of on 4k have a car at all?.
Cars are very expensive to run
much better to save up for things and only buy what you can afford without any borrowing.

Any

CLAPTON wrote: »

sadly, the problem here is why does some-one with an income of on 4k have a car at all?.
Cars are very expensive to run
much better to save up for things and only buy what you can afford without any borrowing.

I'll give you my step son's email address, can you please tell him that?? I id try, but he just thinks I am tight with money;)

:rotfl:

Jakg

CLAPTON wrote: »

sadly, the problem here is why does some-one with an income of on 4k have a car at all?.
Cars are very expensive to run
much better to save up for things and only buy what you can afford without any borrowing.

I earn less than that on a basic wage (although i do extra to top it up) and I can still run a car.

Of course without a car I wouldnt have a job...

The whole point is that he can afford the insurance repayments, but if he could borrow the money over a year he would save about £100 if he didnt have to pay any interest. I was going to do the same 'till I realised the odds of me getting a 0% card before I was 20 were none...