First Time Credit

davies28

My son will soon be 18 and we both would like him to start building a good credit history as often credit is needed for all walks of life. He has been on the electoral roll since 16 and been with his bank for around 4 years now. I would like some information on what he could do to get a good start and any credit cards designed especially for new credit applicants. I thought maybe catalogue companies like Littlewoods offered to people with low credit ratings? Would appreciate any responses. Thank You!

BugsyBrowne

davies28 wrote: »

My son will soon be 18 and we both would like him to start building a good credit history as often credit is needed for all walks of life. He has been on the electoral roll since 16 and been with his bank for around 4 years now. I would like some information on what he could do to get a good start and any credit cards designed especially for new credit applicants. I thought maybe catalogue companies like Littlewoods offered to people with low credit ratings? Would appreciate any responses. Thank You!

I understand where your coming from,but bless him he has only just left school and you want him to get in debt.
The best thing he can do is just keep a good relationship with his bank.

davies28

I started to build my credit as soon as I left school as I think its essential these days and I have NEVER been in a debt - I have an excellent credit rating!

BugsyBrowne

davies28 wrote: »

I started to build my credit as soon as I left school as I think its essential these days and I have NEVER been in a debt - I have an excellent credit rating!

For starters if you have never been in debt you do not have an excellent credit rating,because to have a excellent credit rating you have to be in debt.

Let you lad go and enjoy himself ,explain to him to keep a good relationship with his bank then the time will come when they will look after him.

pinkarsenalprincess

I don't understand the desire to get your son a credit card personally! I did not have a credit card until 25 and it did not adversely affect me in any way. My partner has never had a credit card either. It caused no problems whatsoever in getting a mortgage.

The only reaons I have one now is for the SBT to clear my overdrafts after the financial mess I got myself in through emotional comfort spending. Something which would have been an even bigger mess if I had credit cards from a young age!

KingElvis

Just 18 with no history he will find it hard to get a card of any type, stay with his bank, behave and in a few years they will / should give him all the loans and cards his heart desires.

Tixy

Credit cards can be useful, personally I would never want to travel abroad without one as a back up for medical and emergency costs etc. And of course the protection they offer for purchases can also be useful. Although the second issue can be solved with a prepaid card. Perhaps you could suggest he gets one of these instead for now if he might need that protection.

I think you are right to acknowledge that he will need at some point to start having credit accounts to start buiding a postive credit history. But I would say that a lot of people have found from experience that having credit at 18 can sometimes be all too tempting.

Usually it only takes a year or 18months to build up a credit history to show you are resposible. He would need to do this a couple of years before he applied for a mortgage for example but I would imagine he would be some way off that yet.

Do you expect him will go to into higher education? If so then he will be offered a credit card and that point and will be able to use that to start his credit history - hopefully responsibly. If he isn't then I would suggest that he waits a couple of years until he has be earning for a while and then try to get a card. If at that point his bank won't lend to him he could try one of the subprime cards.
'Bad Credit' Credit Cards: Use them to rebuild credit rating

medaala

Perhaps you could arrange a low credit limit with the bank if he gets one?

I only got a credit card last year and am in my late 20s, I had a hard time finding someone that would accept me because I had no credit history. Even one or two of the ones that are supposed to be for those with no credit history or bad history. So I think as long as you're sure he won't get into debt and miss payments it might be a good idea to start him off now.

hannah16_2

Hi - slightly different question but on the same theme - Ive got a student credit card which is for only £500. Been good and made payments regularly and always above the minimum, balance is now about £150 and I've finished uni. I work full time in a bar / restaurant and basically live off tips, using the salary to clear my bank overdraft which I've now done. I still have my student loan outstanding though. I plan to work until Feb 11 and earn cash to travel for a bit. I understand that it is probably a wise move to buy my tickets etc on credit card to secure payments and I also want to have sufficient spare on a card in case I get into a sticky patch whilst away. My bank is refusing to up the credit limit and other cards I've applied for are refusing me as i don't have a regular income. Are there any cards out there which may meet my needs? I reckon I need about £2000. Thanks!

davies28

There are many credit cards out there for low income earners, bad credit history etc. The best to try would be Capital One, Visa Vanquis or Aqua. These all are designed for people how may have a bad credit rating but want to improve. Let us know how you get on!

Saucepot

At 18 the lad ought to be enjoying himself and not worrying about "credit scores".

He'll probably get his first credit card offered to him with his current account. I got one without asking when I went to uny and opened a student current account and got what was then called an "access card" with a paltry £200 limit. Oo and a cash card and a cheque book. The cash card wasn't a debit card but a cheque guarentee card. I remember thinking how "adult" it all was when I bought some trendy trainers.