Building a credit rating, turning 18

7891368

I turned 18 in the July, and I went to Uni in the September but wasn't able to get a credit card until the Decemeber (2009) and now have 2 credit cards which I manage responsibly and pay off in full each month.

I wouldn't rush for the sake of a few months, if you are going to Uni a student credit card is the quickest/easiest way forward I think

jfh7gwa

bouncyd!!! wrote: »

because you can have very responsible finance savvy 18 years olds and idiots in their 50's who can't manage their money!

I agree with this - all this doubt about whether the OP can handle the whole "don't pay any interest" tactic is just judgement based on his/her age! Plenty of 18 year olds are idiots when it comes to finances, but there are a few who are savvy enough to make it work for them.

We shouldn't write off their abilities just because they've just turned 18. Just look at the OP's posting style - they seem to be fairly clued up, are doing research, on the MSE website - these things all back up their assurances that they won't fall into the common trap where credit cards become an evil rather than a tool with benefits (with savvy use).

Honestly, OP - ignore the folks who are talking about getting a card and giving it to your parents for safe keeping. You're not 10 years old any more. You seem mature - as long as you are as smart as you've initially appeared here (and assure us), there won't be any problems.

I moved out of my parents' house at 16, and sure it was tough, but I also wasn't dumb - people often treated me as such - but not all teenagers are idiots. Perhaps the reason why so many youngers can't stand on their own two feet these days is because we assume they're all idiots and don't allow them some credit for having a few brain cells!

chanz4

Plxply wrote: »

I've sent off my UCAS application and I'm currently waiting for replies from Universities. However the problem is that if I'm given a conditional offer than I would have to wait until August to get my results whereas I'm turning 18 in December. What would be the optimum time to apply after my birthday? 3 months? 6 months?

Thinking about it I don't think I will carry a balance on the cards at all (hopefully) and interest isn't too much a worry. Would it be a good idea to immediately go for cards like Vanquis and Aqua or see if my bank views me as a suitable borrower? The banks will have more history on me and my account management whereas Vanquis and Capital One will have none, however they give higher interest rates so I'm unsure what would be best.

The banks wont have credit history though, you were not allowed any until you reach 18, credit and debit is a whole different ball game with them

skintdad

sorry if I came across as patronising. I agree the OP does seem to have their head screwed on. I'm trying to give the benefit of hindsight. op wants to know how to increase credit rating and doesn't seem to want the day to day use of a credit card. just to use it to build credit rating. to take away the possible temptation I advised giving it to their parents and described how to use it to build credit rating as that is what the post is meant to be about.
as a side note if so many 18 year olds are money savvy then why have nearly 100,000 people signed the e-petition for financial education in schools?

skintdad

Plxply wrote: »

I've sent off my UCAS application and I'm currently waiting for replies from Universities. However the problem is that if I'm given a conditional offer than I would have to wait until August to get my results whereas I'm turning 18 in December. What would be the optimum time to apply after my birthday? 3 months? 6 months?

Thinking about it I don't think I will carry a balance on the cards at all (hopefully) and interest isn't too much a worry. Would it be a good idea to immediately go for cards like Vanquis and Aqua or see if my bank views me as a suitable borrower? The banks will have more history on me and my account management whereas Vanquis and Capital One will have none, however they give higher interest rates so I'm unsure what would be best.

small element of doubt from the OP which is why I'm erring on the side of caution

skintdad

chanz4 wrote: »

The banks wont have credit history though, you were not allowed any until you reach 18, credit and debit is a whole different ball game with them

your own bank will see how you have run your account tho. you can have debit cards and direct debits on accounts for under 18s (unless things have changed since I was 16). card payments refused for insufficient funds and failed direct debits would be viewed negatively

connormill

I'm 19, and planning on buying a house in a couple of years, so got all the savings going and trying to build up a credit history.

I have:
3 Credit Cards
2 Catalogue Accounts
Overdraft with the bank if I need it
And a Cashplus "Credit Builder"

BUT, I pay off everything in full, and never pay interest. I just want the positives on my credit file. I dont buy anything I wouldn't have bought with cash anyway. just do my normal spending on the credit cards and use my debit card for cash withdrawals only.

Plxply

Thanks for your concern everyone, there are people my age who I wouldn't even let near a debit card let alone a credit card. But I assure you that I will only use it as I would my debit card (so I would have to have the cash). The main reason I'm trying to choose between the banks is there are pros to each, HSBC I have 4 years history with but a low balance, Lloyds I have a higher balance but only 1 year history.

System

I'm in a similar situation and really want a Tesco Clubcard Credit Card but have been declined.

DVardysShadow

cathrinkate963 wrote: »

My important enterprise is turn 18 and applying for attribute within a period, then the lenders seeing this as whatsoever forgiving of attempted run for "liberal money" or something. Especially if I endeavor to deal for HSBC get declined, Lloyds declined and then I try with City One and they see the two preceding seek markers.

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