Credit card help?

eloiseh

Hello.

I am almost 22 and would like to get a credit card. I was offered the capital one secure card, with a £200 deposit - which I do not want to do as I do not want to tie £200 of my money in a credit card, I may as well get a prepaid card.

I want a card to improve my credit rating as when I was 19 I was silly, I had a store card which I forgot to pay and got a CCJ on, I have since settled the account. On top of this when I joined my bank they said they would take all my direct debits, however they didn't. They did not take my phone bill across, as I wasn't using the phone I didn't notice it get cut off. When I went home for Easter (student) I saw the bill and immediately not only settled the outstanding balance I paid the balance to close the account, so it couldn't happen again.

I would like to know the best place to get a CC that will vastly improve my credit rating so that I can eventually get a mortgage.

Does anyone have any advice?

Jack1888

Have you tried Vanquis, Aqua or Barclaycard Initial?

If C1 are willing to take you even with a deposit, I think your chances are pretty good actually.

I'd try Vanquis or Aqua as I know that Barclaycard can be quite picky!

reall

Dear eloiseh,

I would look at some options mainly see if you can live within your means,have a good look at your expenditure and income as a student. A prepaid card will prevent you going overdrawn accidently.Cashplus have a prepaid card that has two types of account flexiplus and activeplus.One of them charges a monthly fee of 4.95 and you can use it as much as you like.they report it to the credit reference agencies ...see their website https://www.cashplus.co.uk

secondly remember that when the ccj expires 6 years from its start then it will be removed and hopefully by then your circumstances could be improved i.e less or no debt at all.Pay bills promptly .think about what you need and plan to reduce student debts and increase savings will help you in the long term eg.mortgage or deposit by contributing to your isa rather than giving interest to banks/credit card companies/loans etc.

Consider reading maxed out by james scurlock, how to get out of debt,stay out of debt and live prosperously by jerrold mundis.
concentrate on your isa being bigger than what you owe from student loan etc.....
Do not forget that you can limit the amount to 100.00 and never go over 50% of the credit limit at any time including interest.if you have savings you do not need this.also consider joining a credit union some of them report payments to cra also it can help you to have less access to the funds and build them up by direct debit,deposit,standing order or wage deduction.
You will be able to get a mortgage but the better your deposit saved the better your level of interest you will pay on it.
save/invest

From reall

eloiseh

Jack1988 - Have sent an application to Aqua, will hear within 10 days.

Reall - I know there are a lot of misconceptions about students and money, I think you may have misunderstood my query. My plan is to get a card do the monthly spending on it (only spending what I have in my account) and paying it off in full each month with the money in my account, I give myself a weekly allowance. I have no intention of paying any interest on a credit card, by paying off in full I wont be paying interest. At the moment my overdraft is interest free hence why I have not paid it off yet, however it will be paid off in September as I want to get rid of it. It will remain interest free for the next 2 years. When it is paid off I will have no debt other than my student loans.

I am fully living within my means, I am able to save regularly too. I do not want a credit card as a safety net or to go on a shopping spree with. Just as a tool to repair my credit rating. Student debts do not count towards my credit rating so they will not hinder my chances at a mortgage application.

I do not graduate for another 2 years and am doing a placement year as of June (which I will be paid for and get a student loan, which will go into savings). I would like to get a credit card to build up some positive credit rating.

Jack1888

Good luck with Aqua, keep us posted on the outcome.

eloiseh

Today I have received a credit card agreement from Aqua to sign, but no actual letter saying "you have been accepted, we will give you £xx".

Odd!