Should my son apply for a credit card?

anxious_mum

He is 18, at college and looking for a job. I have read on here that when someone wants to apply for credit, usually when they are older, unless they have a credit history it can be very difficult.

I have been burnt by using credit cards stupidly in the past and would usually advise him to steer clear, but I'm wondering if I'm looking at it the wrong way? When he gets a job, should he apply for one, use it for small purchases and pay off the balance in full every month? Or is that too risky to expect a daft 18 year old lad to stick to?

Farway

anxious_mum wrote: »

? When he gets a job, should he apply for one, use it for small purchases and pay off the balance in full every month? Or is that too risky to expect a daft 18 year old lad to stick too?

IMO it is too risky, but only you know him. My two, now both older & wiser, thought it was sort of"free money", and the tempation today, what with the i this & i that's could just be too tempting

However, he is 18, and is classed as adult, so you can only advise him not to just yet, once he is working, and has a stable bank account maybe then. At least if his pay runs through his fingers like water you will know that not getting a card was best

anxious_mum

I agree with you Fairway, I think he could go and get himself well and truly in the you know what. I think I'll try and steer him away from the idea until he's had experience of using a bank account first. Thanks.

chattychappy

I got a CC when I was 17 and operated 2 or 3 without difficulty through university. Didn't pay a penny in interest throughout my studenthood, clearing each in full each month for 5 years. One of my parents was hopeless with CCs. The other one was ultra-cautious and would have been most disapproving. So I told neither of them and considered it none of their business anyway.

I think it's just down to your son and your relationship with him as to whether you even get involved.

Perhaps it's better for them to start when they're young so if they do get into trouble the chances are it will be hundreds/thousands rather than thousands/tens of thousands.

Practically, credit cards can be handy when you travel overseas, and a rating can be useful when applying for the non-loaded cards. (Clarity, Zero, Post Office etc.)

So on balance, my advice would be go for it.

jonesMUFCforever

To OP he is 18 in college (presumably not Uni) and looking for a job - not exactly what lenders are looking for when giving out cards.
IMO he won't get anything other than a small limit with someone like Aqua.

Beckie1

I am 18, and when opening a bank account in april with halifax, was asked if i would like a credit card.after some thought, i took one with a 600 pounds limit. i thought i would only ever use it in an emergency. so, here i am 5 months later and i have reached my 600 pound limit and it is a constant weight on my shoulders. i am making regular-ish payments (using my student loan!!!!!) and my wage but i would strongly advise him against one. i dont have anything much to show for it. IF YOU CANT AFFORD IT, YOU CANT HAVE IT. tell him this! i used mine irresponsibly, not having one would have taught me to save up and appreciate instead of spending 600 pounds on a lotta nothing!!
Hope this helps!

samwsmith1

Beckie1 wrote: »

I am 18, and when opening a bank account in april with halifax, was asked if i would like a credit card.after some thought, i took one with a 600 pounds limit. i thought i would only ever use it in an emergency. so, here i am 5 months later and i have reached my 600 pound limit and it is a constant weight on my shoulders. i am making regular-ish payments (using my student loan!!!!!) and my wage but i would strongly advise him against one. i dont have anything much to show for it. IF YOU CANT AFFORD IT, YOU CANT HAVE IT. tell him this! i used mine irresponsibly, not having one would have taught me to save up and appreciate instead of spending 600 pounds on a lotta nothing!!
Hope this helps!

I think it mainly depends on how you use it, I got a vanquis a couple of weeks after turning 18 and never thought of it as free money because I didn't want to pay the 50% APR, and never paid them a penny interest, I now have a First Direct card and have only ever paid interest once (think it was about £5) but paying that interest saved me £100, this is because it let me get something that I had to claim cashback on (HP Server), since then I've always paid my balance in full, but then again I only put on it what I know I can afford.

pqrdef

A credit history is a kind of psychological profile of your personality as a borrower and repayer. Time was when lenders didn't care, but those days might not soon return. In the meantime, a credit history is becoming vital - without one, increasingly many lenders just don't want to know. Capital One say a bad history (even a CCJ) is better than none at all.

And most people will want credit to buy something like a car, even if they never buy a house.

So a first credit card is a kind of life test to be gone through. You have to decide when you're ready to take it, and be prepared to learn something about yourself in the process. Being organised and careful with money isn't something that everybody wants as part of their self-image, but that hurdle needs to be got over first.