Banks - still forcing credit on the young

spadoosh

I know this is probably gonna get me a bit of abuse but can i just say its not the banks fault. They are perfectly entitled to try and sell their goods. It is on the responsibility of the customer to say yes or no. I think most people know that credit cards are a fantastic service and its not like we have a go at tesco when they have a 30% mark up (basically where aware that there will be a cost for using such service) The problem is with education, if said 18 year old turned down th CC but the bank gave it anyway then yes blaim the bank but they haveen't and will not either.

I know that without my CC i would struggle to pay unexpected costs (car breaking down (likely to happen to 18 y/o)) And it gives them the flexibility to pay for these costs without having to avoid paying other bills. Credit Cards are not evil, neither are banks. Greed is the only evil and the only blame in a situation like this

podperson

I remember going into my bank at 18 to ask about changing my basic savings account so I could get my student loan paid into it. They offered me a £1k overdraft and £500 credit card on the spot. I actually remember sitting there saying that I didn't need a credit card and they said to me that I might as well take it while it was available as it was useful to 'have for emergencies'. Needless to say with almost no financial experience at the time it was maxed out within a few months, so they extended the limit!!
I accept that people need to take responsibility for their own finances but the banks throwing credit at people with little to no experience with it really doesn't help.

L7oopys

Mine started at that age! At 18 they have me a credit card with £1000 limit and a £500 overdraft!
I was young and blew the lot on going out etc! Crazy!!

I think those adverts from Natwest about doing money education in school r really good!

Watalie

spadoosh wrote: »

I know this is probably gonna get me a bit of abuse but can i just say its not the banks fault. They are perfectly entitled to try and sell their goods. It is on the responsibility of the customer to say yes or no. I think most people know that credit cards are a fantastic service and its not like we have a go at tesco when they have a 30% mark up (basically where aware that there will be a cost for using such service) The problem is with education, if said 18 year old turned down th CC but the bank gave it anyway then yes blaim the bank but they haveen't and will not either.

I know that without my CC i would struggle to pay unexpected costs (car breaking down (likely to happen to 18 y/o)) And it gives them the flexibility to pay for these costs without having to avoid paying other bills. Credit Cards are not evil, neither are banks. Greed is the only evil and the only blame in a situation like this

Why would that get you abuse? You are right - it's not the banks fault - they are there to sell! I firmly believe that Education is the way forward!!

But I know in my case - a £2k credit limit was way too much for an 18 year old earning 4.5k - but I didn't know any better - the banks should have more appropriate guidelines in the same way people should be educated more.

runninglea

I'm not saying the banks shouldnt try to sell their products, but to give an eighteen year old whom has only been in fulltime employment since August a credit card with £2000 limit is irresponsible of them.

When this limit is reached and they are struggling to meet the minimum payment, more than likely they will recommend a loan to consolidate and the cycle has begun for another poor debt ridden sole

littlepinkstars44

The minute i turned 18, thats when all my troubles with money started really! 5 years on, and look at the mess i've got myself in now! I really hope that schools do start to educate kids about credit soon. Thinking back there was about 10 people in my year in school who turned 18 while they were still in school, i wonder if any of those took out credit while they were still at school!?

chigley

I got my first (and only ever) credit card shortly before my 18th birthday - must have been a mistake on Barclaycard's part, in fact, I must be their most loyal customer, as I still have the same card and I am now 51!

However, I can still hear my mothers words ringing in my ears - "never a borrower nor a lender be" and I never have been - so its got to be down to education, and in a lot of cases, will power. I have met many people throughout my life who cannot save and have to have everything 'now' and therein lies the problem I reckon.

ru20205

Just to add to this. The first job i got as an 18 year old out of college was working for NatWest bank. Great job, great people, made many friends i still have today.....however, part of the requirement of working there, as im sure it is with other banks, is you have a bank account with them, (then, at the time) you could then get their 'Advantage Gold' account, that the average joe blogs pays for, for free!!! Fantastic, i know, it comes with lots of benefits including, interest free O/D's, preferential rates on loans and credit cards.....so guess what.....i had a free O/D, 2 x preferential rate loans oh and a credit card too, thank you very much......BIG mistake!!

I left Natwest 2 years later with 11K debt around my neck, plus another 4k on a Student Barclaycard i got when i struck 18 and had one thrust under my nose like a carrot being dangled under my nose, when i walked into a barclays branch (who i banked with prior to working for NatWest and having to open a NatWest Account).

My fault - totally.....was i silly - absolutly.....was i aware of the risks & consequences - possibly, i mean you dont have to be a genius to work it out....however, i wasn't educated about the risks and consequences to fully understand the results of my accepting and applying for this 'free' money (which is what i thought it was at the time).

Too much faith is put in 18 year olds to make the right decision. Im not saying they are not capable of making the right decision, but as im sure a lot of you will agree, you have to know what the right decision is in order to make it, at 18, fresh out of college / school, you have no concept of the true value of money and what the right decision would in fact be when applying for credit, because you do not know, not down to lack of forethought, but down to lack of education and life experience the immediate, short term and long term consequences of the actions you choose.

I loved being 18, not a care in the world, free to live life, have fun, spend as much money as i wanted........however, I much prefer being the age i am now, 11 years on, having learnt a lot of valuable life lessons along the way, being much wiser and debt free, with a very good line of credit in my name which i trust myself with as having been there and got the t'shirt, i will never ever return. Some good has come out of it though, i have educated friends and aquantainces on debt problems, and my younger siblings learnt from my mistakes and didnt follow suit and get credit as soon as they were 18.

So in short, it is all about education, education, education...it has to be....otherwise how is an 18 year old supposed to know credit is bad if they only see it as 'free money'?!

Dellers

A lot of it comes down to having a credit card is been seen as grown up.

Vaila

I myself am 18, and would never in a million years apply for a credit card, ive never been offered one by my bank or through the post, if anything there just pestering for me to set up savings accounts. i assume most of my thinking is down to never been brought up with relatives using credit cards and in most cases using cash. i feel rather sorry for all the naive 18 year olds who will be running up debts on credit purerly because they now can