Daughter Wants CC - which one?

Enterprise_1701C

My DD wants a credit card. She had one from her bank but they closed it as she (hadn't read all the letters as she hadn't used it - ironic really!), fortunately I was with her and could pay on mine.

What is best for a 22 yo with a job and a mobile phone contract (so some credit history) to go for?

She is also considering the possibility of an overdraft.

She is seriously careful with her money so not worried about her overdoing it!

Tixy

Do you mean they closed it because it was a dormant account she'd never used? She could try seeing if they'd reopen it.

Aside from her own bank she may well have to go for a subprime lender to start.

What does she want the card for? (as in how does she intend to use it? - for spreading the cost of purchases, just for credit building, for the added purchase protection?)

Enterprise_1701C

It was a dormant account, but they can't reopen it for whatever reason.

She wants it to spread the cost of purchases, haven't told her about the purchase protection yet. She's a bit naive about this sort of thing as she has always paid up for things immediately. She even managed to save up for her car rather than borrowing for it.

She wants one in case she has another month like this one with heavy expenses leaving her almost broke halfway through!

Thought she might need to go supprime first off, might advise her to go to her bank to try for a new one as they have seen how well she has run her account.

opinions4u

She wants it to spread the cost of purchases

Perfect world scenario suggests a card with 0% on purchases.

She wants one in case she has another month like this one with heavy expenses leaving her almost broke halfway through!

While credit cards are handy, they also have inherent dangers around interest costs and escalating debt. In a perfect world using them and clearing the balance in full every month is the way forwards.

Life is full of months with "heavy expenses" and "unexpected bills". Along with death and taxes they are certainties. Equally, life is also full of months where no nasties come along. Setting funds aside in a savings account during the good months helps to pay for the bad months.

If you knew that you were gonig to spend (for example) £1,500 a year on something it makes sense to save up for it.

I know that in a typical year I will spend £1,500 on things I don't want to spend that amount on. I don't know what those items will be, but they will invariably be selected from the list below:

- exhaust falls off car
- puncture
- new brake pads
- new clutch
- accident claim excess
- car dying and needing replacing
- tile falling off roof of house
- door handle breaking
- fridge dying
- washing machine dying
- freezer dying
- plumbing crisis
- electrical crisis
- attending a wedding and needing a new outfit
- attending a funeral and needing a new outfit
- holiday to a different climate than usual needing new holdiay clothes
- moving up or down a size needing new clothes
- TV dying
- Skybox needing a repair
- DVD recording dying
- 3 piece suite groaning at the weight of my rear on it for too many years and needing replacing
- New piece of "must have" technology that I simply, well, must have
- Unexpected opportunity for a weekend away

10%-20% of income set aside every month will help with these things.

I'd hate her to get relaint on the credit card, build up a debt and then wonder why she's got no deposit for a house and the mortgage lenders will only lend her enough for a shed anyway.