Credit Cards

Crhis

I'm hoping someone can clear this up for me.

I'm 17 at the moment and currently in second year of college education and will be going to University next year. I have a debit card at the moment mostly for making the online purchases or occasionally a withdrawl when I'm out and about.

I understand that some credit cards provide cashback for purchases, which would obviously be useful, but also protection against fraud which is sometimes a worry on the internet and at some point this year I will be buying a laptop online and even though it will be from a reputable seller that protection would be handy.

Obviously I have little experience in the matter but I can confidently say that I will not be going in to debt with this.

My question is, how does this tie in to a student bank account? Are you allowed both? What if I got this now and then cancelled it when it came around to September 07, will it in any way alter my ability to get a student account?

Thanks.

cupid_s

when I opened my student bank account they tried to persuade me to have a credit card but I didn't (wish I had as I struggled to get one from anywhere else recently).

Unfortuantely full time students generally find it difficult to get credit cards so unless one comes with your student account you may be turned down. However the one offered with student accoont will most likely have few/no benefits and a high interest rate. I suppose they're good to increase credit rating if you're intent on paying off the balance each month.

Crhis

So there's no problem with having the two then (I read something about the T&Cs only letting you have one student account, wasn't sure how broad a term that was), the problem is just getting hold of one in the first place. Right.

Savvy_Sue

You'll have a BIG problem getting a credit card before you're 18 ...

Crhis

A fact which I'm well aware of, and that's why I didn't ask of it in my question.

I turn 18 on Monday; I'm just planning in advance.

djhworld

I'm sort of in the same situation.

I'm 19, second year of university and starting to think about getting a credit card. Obviously not to be used as free money, I'm planning on getting one for the reasons Crhis described above, cashback, online purchases and so forth.

....but I'm starting to doubt as to whether I'm able to have one or not, I'm currently in my (interest free) overdraft like every other student is right now, I'm concerned this may reflect badly on my credit rating.

However I do have a mobile phone on contract, which I pay off in full every month.

Savvy_Sue

Crhis wrote:

A fact which I'm well aware of, and that's why I didn't ask of it in my question.

Apologies: it wasn't entirely clear from your post that you knew this!

Crhis wrote:

I turn 18 on Monday;

Congratulations ... :beer:

Crhis wrote:

I'm just planning in advance.

Not something I've been able to get used to with my eldest ... :rotfl:

djhworld wrote:

....but I'm starting to doubt as to whether I'm able to have one or not, I'm currently in my (interest free) overdraft like every other student is right now, I'm concerned this may reflect badly on my credit rating.

Only way to find out is to apply! And I can only speak for my son, but I know he regularly gets letters from his bank (NatWest) inviting him to apply for a credit card. He does have a good history with them, as he's banked with them for years, and I don't think he's using the overdraft, and I wish he'd take them up on their offer to build himself up some credit rating!

Why not ask the bank you have your student account with? Failing that, I believe from (much) earlier threads on this board that Egg are quite good at offering students credit cards.

Of course, another possibility for the sensible and responsible among you, if your parents have a reasonable credit rating, is to ask them to take out a card and have you as an extra cardholder. They cut their card up (unless you want them to be able to spend on your behalf) and you pay the bills. There would need to be a full, free and frank discussion before going down this route because you could quite easily b*gger up your parents' credit rating, but I think this would let you build up your own credit rating, even if you're not the main cardholder. And of course your parents could always cancel the card if you weren't paying the bills.

If I'm wrong about any of the above, I'm sure the more knowledgeable will be along soon to correct me! :rotfl:

techno_geek

Two days after I turned 18 (after the hangover wore off... lol) I went to my bank (HSBC) to apply for a credit card - they offered me a £250 limit as I didn't qualify for the student CC deal yet... I've had it for over a year and my limit is now £1200.

I always pay it off in full each month, and I think it's a useful tool to develop a credit history.
I now have student CCs with Halifax and Barclaycard too and use them for the same purpose.

It might be worth going to your bank and asking them if you can apply for a credit card - you'll generally have more luck there than asking another bank or credit card company to issue you one.

if your parents have a reasonable credit rating, is to ask them to take out a card and have you as an extra cardholder.

I don't think this would work, as it wouldn't show up on YOUR credit report as the main cardholder would be your parents. You're best applying for one youself (as above)

Savvy_Sue

techno_geek wrote:

I don't think this would work, as it wouldn't show up on YOUR credit report as the main cardholder would be your parents. You're best applying for one youself (as above)

Yup, I wasn't sure whether this would help your personal credit rating or not. Something for me to investigate if DS1 continues to procrastinate on the 'getting a credit card' front, because I would trust him not to be silly with it! :rotfl:

Freefall

Savvy_Sue wrote:

You'll have a BIG problem getting a credit card before you're 18 ...

In fact, unless your parents co-sign you won't get it and, even then, your chances are virtually nil.

colin79666

I passed a Barclaycard stall in a shopping centre about a month ago.
When they got to know I was a student they were practically forcing the me to sign up

I declined as I am not impressed with bully sales tactics. I don't yet have a credit card, although I am still considering getting one (I'm 19 soon)