I'm turning 18 tommorrow - Tips before applying for credit?

Bravehearted_2

Plus, you can get a decent laptop for what you've got saved up to be frank.

No need to go getting a CC for that.

DCFC79

Bravehearted wrote: »

Plus, you can get a decent laptop for what you've got saved up to be frank.

No need to go getting a CC for that.

Well you would hope he uses some of what he has saved up so far,

mcjordi

please OP think things through. i got a cc at 18 from barclaycard with a 400 quid limit i think it was.. all was fine and dandy till i was aplying left right and centre for credit. things got bad and couldnt pay off what i owed

credit file is now ruined and will be for a few years yet.

Its easy to get credit/into debt but not as easy once your hooked.. save up would be my advice.. thats what im having to do atm

caeler

Don't do it. Please.

Save like crazy and buy it outright and it will feel very satisfying.

Vikipollard

How about you wait until January (whn there are sales anyway), and you've put the second installment of £200 into your savings (which will give you £400 to play with).

Use the savings to pay the £350 (or whatever, if the same laptop is cheaper), then pay back to your savings account an extra £50 per month as if you'd taken a loan/cc. This would mean you save £250/month and inside seven months you have all the money without having incurred any debt or interest charges.

Please don't rush to get into debt. Not wishing to patronise, but at 18, the party season is unlikely to stop and you may find yourself wishing you'd never taken on a debt so young.

swbrua

eviekins wrote: »

Although being on the ER is a must, alot of credit checks won't accept people with no credit history, regardless of whether you are on the ER are not. A credit card or loan through your bank would probably be your best bet of being accepted. Once you've had either a few months and have paid the balance in full each month, then you will be much more likely to be accepted by other credit agencies.
I would still say this should be your last resort

I know it's wildly off topic, but at the age of 21 how do you have £30,000+ in savings? It would be interesting to see a topic explaining how, if it's just a reasonably good job and saving every penny or if you had money from family/friends and saved that? I guess if you left school at 16 and have been working full time since and made good decisions (living with parents to save money) you could have achieved it, that would take a lot of discipline congrats either way, would definitely like to hear how as someone a similar age!

drjones

Let's give the OP the benefit of the doubt here. I think he might deserve a bit more credit (pun!) than he's been given so far. The previous posts have all have been correct to preach caution - I wholeheartedly agree with this point of view - and generally would not recommend any 18 year old buy anything on credit. However, the OP has come HERE and asked for advice, having evidentially read this forum previously. Not every young person is dumb with money, and I reckon there's probably an inverse correlation between financial-foolishness and time spent on these forums. He's also smart enough to be saving already.

If I was in the OP's position, and could buy something on 6 months of interest free credit I would; we all know it's the most profitable option given the repayments are made. He doesn't lose interest on his savings and he starts building his own credit score. Ultimately it's his responsibility not to balls it up.

However, as stated this is likely a moot point as he may not be able to acquire credit anyway. So what are his other options? I would suggest buying the laptop from savings. OP you are confident that you would have no trouble paying back debt, so why not effectively take a loan from your own savings, with the view to definitely top it back up with in a planned time period? I know you said you have future plans for the money, but if you really need the laptop as soon as possible it's your only real option.

telboyo

Seriously- don't get credit! When I was 18 (30 yrs ago) my Dad told me not to get credit, well, he obviously he knew nothing! Consequently a few yrs later I started married life with a ton of debt.
When my son turned 18 I tried to advise him not to get a credit card. "Fortunately" he maxed them all out by the time he was 21 and was up SH!7 street, cleared them all by 24.
He now pays for every thing by cash - his only credit is a contract mobile.
He is fortunate in that he learnt his lesson the hard way by the time he was 24.

WAIT A MONTH AND BUY A LAPTOP FOR CASH

ViolaLass

If you can't get a 0% loan, which you probably can't, I can't see why you wouldn't use your savings. You're putting enough away that you'd have the money in two months max, possibly less and it would cost you a lot less. Unless you NEED the laptop before (need, not want), then why waste money on interest?

money_free_2011

Hello. I HAVE BEEN HERE in exactly the same position.

I turned 18 and purchased a laptop on credit. Next thing im hooked into the lended spiral and I am just getting out of 30K Debt and im only 27. Its not worth it. I have a £34,000 per year job and have nothing to show for it. And was earning 25K at 19...

The way you talk about it seems just like me as a teenager; 'I want it now', 'I cant pay £50 per month and use the rest for other things'. etc etc... Its a vicious spiral and in this climate can get out of control.

Do it the hard way, save the cash and get the laptop in full. Another 'post' suggested purchase in Jan sales (GREAT IDEA).

Most people on here are saying stay away, and from personal experience I totally agree. Being in debt is terrible. dont start it at 18.........