Credit Card Application For Student

jewellybear

Hi,

I am getting round to insuring my car, which is going to cost quite a bit. Unfortunately, due to unforseen circumstances, I am not quite going to be able to afford the full lump sum by the time it actually comes round to it, so my Dad recommended getting a credit card with 0% so I could effectively create my own payment plan, and not have to pay monthly with the interest. The only thing is I am worried I may not be able to have one due to the fact I haven't borrowed money before, bar my Student account overdraft. I was refused a contract with Virgin mobile earlier this year (based on my "credit report/status") as it was based on a direct debit system and I'm worried the same thing is going to happen. Can anyone give me any advice please?

Thanks

Fang_3

Can you not go with a company that allows you to spread the payments throughout the year? I doubt that you would get a 0% credit card if you can't get a mobile phone contract. Though if you're a student, do you have a student account with an overdraft?

jewellybear

Yes I have got an overdraft, though I can't access it all at once. I don't know why they refused me the contract, they wouldn't say. But it does beg the question, if I keep being refused to borrow money based on the fact that I haven't borrowed any before, where do I start? I can spread the payments but it means paying a load more overall.

Fang_3

jewellybear wrote: »

Yes I have got an overdraft, though I can't access it all at once. I don't know why they refused me the contract, they wouldn't say. But it does beg the question, if I keep being refused to borrow money based on the fact that I haven't borrowed any before, where do I start? I can spread the payments but it means paying a load more overall.

What do you mean 'you can't access it all at once'? If you have an overdraft then you can access it.

By all means try and get a 0% credit card, but I would guess that you would be knocked back if you can't get a phone contract.

[Deleted User]

does your student account not offer a cc?i know my dd got one with her natwest student account with a £500 limit,but not interest free.

Jon_B_2

I'd personally be very !!!!ed off if a student managed to get a 0% card when I have regular income and decent credit history and can't be accepted on a 0% deal.

Fiddlestick

woodbine wrote: »

does your student account not offer a cc?i know my dd got one with her natwest student account with a £500 limit,but not interest free.

What's a DD?

ElkyElky

Jon_B wrote: »

I'd personally be very !!!!ed off if a student managed to get a 0% card when I have regular income and decent credit history and can't be accepted on a 0% deal.

I'm a student with 6 (previously 7) credit cards, a bank loan and phone contract. Just because I'm a student, doesn't mean I'm any less credit worthy as apposed to someone working full-time such as yourself. I've enjoyed my fair share of 0% offers simply because I fit the criteria they were looking for.

You obviously don't have a 'decent credit history' if you're being declined for 0% cards. You have to sit down with your credit reports to try and figure out what could possibly make the lenders decline you.

paulmcerlean

You'll not get a 0% card at this present time without good previous card history - in fact if you are a student and have never had a card, I dont think you'd get a decent apr card with even a big enough limit to cover the premium.

You'd be best paying your insurance monthly.

Jon_B_2

ElkyElky wrote: »

I'm a student with 6 (previously 7) credit cards, a bank loan and phone contract. Just because I'm a student, doesn't mean I'm any less credit worthy as apposed to someone working full-time such as yourself. I've enjoyed my fair share of 0% offers simply because I fit the criteria they were looking for.

You obviously don't have a 'decent credit history' if you're being declined for 0% cards. You have to sit down with your credit reports to try and figure out what could possibly make the lenders decline you.

Well considering I was a student for 3 years only graduating last year with £22,000 of student debt I was never in a position to be offered credit, let alone all my other peers who were living in the breadline. Trust me, my credit file is almost perfect, suffice for the fact I still have an outstanding overdraft that funnily enough I accrued during my student life, when all I had to worry about was where my next pint was gonna come from.

The fact banks offer students credit cards is abhorrent in itself, especially with the abundance of interest free overdrafts about

To be honest any responsible parent wouldn't be recommending financial help from the banks at all and would maybe lend the money themselves to be repaid as and when. Also I cannot fathom why anybody would really require a car at uni unless they were studying at home. I could afford a car at uni, because I had saved for it and could afford the insurance on top, but if I had to for a second consider a credit card to keep it on the road the car would have been sold.

But to be honest, this is a forum where a lot of people are in a pickle with money and perhaps my advice and opinions go a lot against the grain.:)

ElkyElky

Jon_B wrote: »

Well considering I was a student for 3 years only graduating last year with £22,000 of student debt I was never in a position to be offered credit, let alone all my other peers who were living in the breadline. Trust me, my credit file is almost perfect, suffice for the fact I still have an outstanding overdraft that funnily enough I accrued during my student life, when all I had to worry about was where my next pint was gonna come from.

The fact banks offer students credit cards is abhorrent in itself, especially with the abundance of interest free overdrafts about

To be honest any responsible parent wouldn't be recommending financial help from the banks at all and would maybe lend the money themselves to be repaid as and when. Also I cannot fathom why anybody would really require a car at uni unless they were studying at home. I could afford a car at uni, because I had saved for it and could afford the insurance on top, but if I had to for a second consider a credit card to keep it on the road the car would have been sold.

But to be honest, this is a forum where a lot of people are in a pickle with money and perhaps my advice and opinions go a lot against the grain.:)

You're credit file is almost perfect? Have you held a credit card before? If not, this is your problem. Lenders want to see multiple credit accounts on your file to be able to judge your credit worthiness. An overdraft unfortunately isn't enough. Your credit file may be perfect in the sense that there is no negative information but lack of positive information also leads to an imperfect file.

It's actually a very good thing that banks offer credit cards to students. I've built up an excellent history of managing credit which will allow me to quite easily obtain a mortgage following my graduation.

It's up to the individual to choose whether they respect the responsibilities they've been given or abuse it.