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

dzug1

kaya wrote: »

No offence to the OP as it's your life to do with as you please but is that seriously how people are pre-programmed nowdays? The first thought you have when turning 18 is how you can get yourself into debt in order to keep up with the Jones's ? Can you not borrow the money from family and pay them back instead ? You are playing right into the hands of the financial industry who's goal is to get you and keep you in debt for the rest of you life so they get rich by doing SFA!

If you read some of the other boards on this forum that can be a very bad idea indeed

eviekins

dzug1 wrote: »

If you read some of the other boards on this forum that can be a very bad idea indeed

Not if you're going to pay them straight back? The OP is earning and has disposable income each month as well as savings (hence why I still can't really understand the need for credit) so as long as they have morals, you would presume they would want to pay it straight back to family/friends anyway.

[Deleted User]

Dont do it - its a slippery slope & before you know it you'll be kicking like yourself like most of us on the DFW boards!!!!!!!!

Dxxx

drjones

Just to provide a counter point to the "I got credit at 18 and had to sell both my kidneys by 21" posts, I got a credit card at 18. I've never paid a penny interest (by paying it off, not by stooging) and have grown my own savings considerably since then, despite being a uni student for 7 years (£12,600 a year for 4 years postgraduate study, woo!). Credit isn't intrinsically evil, it's a useful tool that should be used with great responsibility.

allybee101

Credit is ok if you are fully aware of the ways to play the system (i.e paying back in full each month to earn cash back), but the bottom line is that
it's not your money
and the banks will do their damn best to make sure they profit from their lending.
It's fine if your control it, but if you start to use the card for everyday purchases or take out some cash on it then it can be a slippery slope.
There's a lot to be said for saving up for something and having the satisfaction of paying for it with your own money.

TrueUnitedFan

Hi guys, thanks for your responses. I won't respond to all the responses directly as i will be here until next year if i do, but i appreciate your input and i have read them all.

I would disagree with some of the comments that were made towards me about, oh 'You're 18 now and the first thing your thinking about is getting in to debt and getting credit' Yes, i admit that credit has been on my mind for a few months now, but i do know that whatever i take out, i will be able to afford it.

I have sit back and watched 2 of my family members had their credit ruined over the years, because they were careless. (I checked my mums score on CE last night and it was 122!!)

but yes, i will be careful when it comes to having credit, as i have plans in the future such as getting a mortgage ect and if your credit rating ruined than that will cause problems and so on.

I have decided that i won't get credit for the laptop as i can easily wait a month or two, to buy it outright. I won't touch my savings. Got around 100 today for my bd...

However, i decided that due my PAG bill comes up around 40 pounds per month. I will get a phone contract instead for around 25 pounds a month which will save me money in the long run.

Some may laugh at this but i don't really care, i'm not going to go wild and apply for credit but leaving too late without having something in credit might not do any wonders in for say, a few years later i want to get a loan/mortgage ect. The only thing i will take out for now is a phone contract.

Once again, thanks for your responses.

Jeff_Bridges_hair

Well as long as you understand the risks - which appears that you do - then go for it with the phone. Always handy to build a report when young really - can only help in the long run when you come to making a big financial commitment later.

But remember - be careful

TrueUnitedFan

Jeff_Bridges_hair wrote: »

Well as long as you understand the risks - which appears that you do - then go for it with the phone. Always handy to build a report when young really - can only help in the long run when you come to making a big financial commitment later.

But remember - be careful

Hi Jeff, yep, i fully understand the risks and i won't take anything out other than the phone contract for now., i'll defo be careful also. 100 percent.

thanks for your response.

drjones

Whichever phone contract you go for, be sure to check Quidco first!

eviekins

Hope you had a lovely birthday
The phone contract sounds like a great idea. Saving you money each month, and building a credit rating!
It's also nice to hear that you have decided to save for the laptop and purchase is outright. I'm sure you will find this very rewarding!
Like drjones said, make sure if you are purchasing via the internet you compare prices online and use a website such as topcashback