Which CC to apply for?

Shelldean

DD is 19 and a uni student.
And as such has no credit history. Does her bank account count in that respect? it has no O/D facililty. She is on the electrol roll.
We was discussing her future and thought now might be the best time to start building her credit history, so when she does leave uni it will already be established.

We wonder which credit card would be best to do this?
She wont need a huge limit, she's going to do one wks shop on it a mth and then pay in full each mth. Simply doing this to get the green report.

Any ideas which she might try as she doesn't want to apply for loads and have all the searches?

mgarl10024

Does her existing bank offer a credit card?

angelbob

tbh i wouldn't advice any 19 year old to get a credit card, she might say now she will buy one thing each month then pay it all off. I bet everyone on here has at one point, but in ten years time she will be on here with a shed load of debt, looking for help.
Try and teach hher to save and use cash instead, she doesn't need credit yet :mad:

mgarl10024

angelbob wrote: »

tbh i wouldn't advice any 19 year old to get a credit card, she might say now she will buy one thing each month then pay it all off. I bet everyone on here has at one point, but in ten years time she will be on here with a shed load of debt, looking for help.
Try and teach hher to save and use cash instead, she doesn't need credit yet :mad:

I totally disagree. Depends on the person of course, but not everyone is the same.

Shelldean

Angelbob,
Thats a very sweeping statement, you can't tar all 19yr olds with the same brush.
She is uber senisble and know her limitations, if it was one of my three boys then no way would I even suggest it.

She does save as well and has an ISA.
Her maintenance loan is due begining of April and she has quite a bit left due to budgeting, so any is if left when next loan installment goes in it will transfered to her ISA.
She honestly is sensisble.
And she is trying to think ahead to when she leaves Uni, as we have hear (unsure if it's true) that NO credit history is as bad as a negative one.

She wants to build her credit history and I think this is the best way.


mgarl10024

Thank you.
Yes her bank (HSBC) offers a credit card and she has a meeting there tomorrow afternoon. I just wondered if there was any recommendations besides her bank credit card??? tho hopefully she should be accepted with her bank as she's run her account well for several yrs.

Shelldean

well she's sorted.
She applied to HSBC who she held her current a/c with.
They have given her a student a/c with interest free overdraft. And they automatically offer a credit card. She was accepted for the credit card. She was offered up to a £500 limit she asked for a £200 but was told the minimum was £250, which she accepted.
She's already set up the minimum payment mth.
And we've had a long long loooooong talk about using it wisely and clearing the balance in full every mth. Also discussed her credit rating & history and hopefully she'll be SO much more sensible than I ever was.


thanks again everyone

Weronika

Shelldean wrote: »

well she's sorted.

She's already set up the minimum payment mth.

That's the mistake people were warning above - she needs to set a Direct Debit for a full amount each month! You still get a month of free credit and there is no danger the debt will incur interest and build up!

Shelldean

Weronika wrote: »

That's the mistake people were warning above - she needs to set a Direct Debit for a full amount each month! You still get a month of free credit and there is no danger the debt will incur interest and build up!

She is going to pay in full each month by topping it up.
This was another subject discussed in looooooong chat lol
She was thinking that IF she ever did spend on it properly (rather than just a small shop) She might not be able to pay the full amount, but by having set up for min payment she'll avoid late payment charges. And she is fully aware that if she uses the card in this manner she will inccur interest charges.

But she doesn't plan to use it properly but wants to have the choice iyswim?