First credit card for 18 yr old son

BugsyBrowne

samwsmith1 wrote: »

This is off my statement:

So I would have thought that would be correct?

Lol thats your simple rate mate,now phone them up and ask what apr you are really currently paying.

samwsmith1

star-fire wrote: »

Lol thats your simple rate mate,now phone them up and ask what apr you are really currently paying.

What do you mean it's my simple rate?
Surely if it was different they would print it, or is it done to mislead?
Thankfully I've never had to leave a balance on it so never paid any fees, and never signed up to there repayment option plan despite there numerous calls - so never paid them a penny.

BugsyBrowne

samwsmith1 wrote: »

What do you mean it's my simple rate?
Surely if it was different they would print it, or is it done to mislead?
Thankfully I've never had to leave a balance on it so never paid any fees, and never signed up to there repayment option plan despite there numerous calls - so never paid them a penny.

34.08% PA is the SIMPLE interest rate.
34.08/12 = 2.84% Per Month 1.0284^12 = 1.399 (1.399-1)*100=39.9(%) APR. Call them and ask. If they say your interest rate is 34% say "NO, that is the SIMPLE rate, isn't it? I asked for my APR. What is my APR?" You'll see.

pjcox2005

My views:

18 is fine to have a credit card, hence the law allowing it. Whether you rack up debts or not is down to the individual and not the age, to suggest otherwise is another way of people looking to blame others.

Why have a credit card - cashback/delayed repayment if o% and increased insurance/protection (which is relevant for all ages).

Should you be spying on an 18 year old - no, and probably will cause family issues if you do.

In terms of interest rates, I see no difference to whether it's high with Vanquish or lower with your bank as you'll be paying it off in full.

To the original question - I would look to find one that gives something back ideally cashback so that a benefit is received (why apply for one without the benefit). If he meets the principal lending criteria with capital one then go with that.

If rejected, then go and speak to his current bank who will probably still offer the card.

One credit card rejection is hardly going to have a significant impact on his credit rating at this stage.

callum9999

PursuitOfHappiness wrote: »

Crazy credit card at 18.
Even if he is a sensible lad don't you think he'd be better off using his own money at the time being? What advantage would a credit card bring to him?
I'm 21 and the amount of people that I know who've had credit cards and have misused them is unbelievable. They're sensible now, were sensible then but on the other hand temptation is temptation.

Rubbish. Advantages? More protection, deferred payment, builds credit history, airmiles etc.

The poster is presumably in a better position to judge whether they are sensible enough for a credit card than you are.

PursuitOfHappiness

I'm not exactly judging the OP's son, basically highlighting that there is a risk of overindulging on a credit card.
I understand the advantages and agree but you really think many young people at 18 bother, and spend enough on their cards, to earn airmiles points?

7891368

pjcox2005 wrote: »

My views:

18 is fine to have a credit card, hence the law allowing it. Whether you rack up debts or not is down to the individual and not the age, to suggest otherwise is another way of people looking to blame others.

Why have a credit card - cashback/delayed repayment if o% and increased insurance/protection (which is relevant for all ages).

Should you be spying on an 18 year old - no, and probably will cause family issues if you do.

In terms of interest rates, I see no difference to whether it's high with Vanquish or lower with your bank as you'll be paying it off in full.

To the original question - I would look to find one that gives something back ideally cashback so that a benefit is received (why apply for one without the benefit). If he meets the principal lending criteria with capital one then go with that.

If rejected, then go and speak to his current bank who will probably still offer the card.

One credit card rejection is hardly going to have a significant impact on his credit rating at this stage.

I related it more to the amount of credit he would be offered rather than the APR.

Why get £200 when for the sake of a few months you could have double that.

£200 p/m is nothing really. I spend around £600 a month on a credit card and pay it off in full each month.

izools

samwsmith1 wrote: »

My APR is 34.5% or something like that.
But as I said, as soon as I get my student account setup next year I will have a HSBC student card.

That's your simple interest rate not your APR. Your APR is 39.9%.

Call and ask if you don't believe me. If they quote 34% again state Ï didn't ask for the Simple Interest Rate, I asked for the APR. Please tell me the APR" and you'll see.

They quote the Simple rate to look cheaper, it's just marketing and obfuscation.

BugsyBrowne

izools wrote: »

That's your simple interest rate not your APR. Your APR is 39.9%.

Call and ask if you don't believe me. If they quote 34% again state Ï didn't ask for the Simple Interest Rate, I asked for the APR. Please tell me the APR" and you'll see.

They quote the Simple rate to look cheaper, it's just marketing and obfuscation.

Izools hope you didn't mind i borrowed your percentage working outs for this samwsmith1,as i knew you have covered this before when talking about vanquis and their 34.5% nonsense.

jammieb

I got a credit card at the age of 18 and i am now 23 and even though i have had 4 years at university i have never failed to make my monthly payments in full.

I think it is a great idea to get a credit card at 18 (if you are sensible with money of course) and of course help him when choosing his first card as you will know a lot more about what you are looking at than him, my dad basically told me which card to get as i had no idea back then.

I went with my bank for my first credit card (barclays/barclaycard) and they gave me a limit of £500 which is perfect for a first credit card. I would suggest looking at those cards where you get something a bit extra like cashback or clubcard points with tesco. When i first got my student card i got a free railcard for 3 years so student cards may be a good place to look if hes a student.

not sure if any of that will really help but just wanted to put my two pence in and show that 18 year old can be responsible :-)