Credit Cards

teeb

I got a credit caerd along with my student account. I was already 18, and I just smiled, nodded and signed the form, mainly as I wasn't very money-savvy at that point.

Through my first year it was the ruin of me - as soon as I saw something shiny I knew I could get it using the card [500 pound limit on it]. And I suspect students who haven't had money available before might be tempted to do the same thing.

Which is why my suggestion is as follows : get one, yes, but cut it up before you use it. If anything write down the number on it for online shopping, but don't keep it in your wallet. It's too tempting otherwise.

Course, if you're able to control your spending impulse then I don't see anything wrong with having one.

pavlovs_dog

when hsbc converted my young persons account into a student one, they gave me the option to apply for a CC. i did, and they gave me a limit of £500.

since then i have applied for a store card, and a CC with decent rewards. for both of these, i had to battle to prove i was a good credit risk. with tescos for example, they declined me initially, i appealed, and ending up having to send them various different bank statements etc to prove im not about to do a moonlit flit.. and still they've only given a £250 limit to start me off.

so long as you use them as a debit card, and clear the balance in full each month, i think its a wise move. builds up your credit rating, which will make life much easier when you finally move out into the 'real' world.

ways to help get credit: make absolutely certain that your parents include you on the electoral roll. you wont get credit if you are not on it.

tr3mor

You definitely won't get a cashback card.

Also, for your purchase to be covered by the credit card you don't need to pay the full amount. Eg you could buy a laptop and put £10 of it on the CC and still be covered.

nige

tr3mor wrote:

You definitely won't get a cashback card.

Not entirely true, I've been with Lloyds TSB with my current account for so long that when I asked in the bank about a credit card, they said that if I want a credit card they will allow me either the American Express cashback card or a standard Visa credit card with £1000 limit gauranteed either way (and up to £2500 if I get a part time job).