18 and needing credit

frepol

I am slightly concerned about a few recent threads where people who have turned 18 have decided that they now need credit.

Why?

Why can you suddenly not have the same quality of life as you did before your 18th birthday without a credit (AKA DEBT) card, cheque guarantee card etc?

Why are you so keen to put yourself in hock to the banks before you even leave school?

Why are you falling into the marketing trap? If you can't afford it, and you don't have the income to repay credit quickly then YOU CAN'T HAVE IT!

Your time will come - just be very careful and take it very easy.

Always remember - IT'S NOT YOUR MONEY YOU'RE SPENDING. IT HAS TO BE PAID BACK WITH INTEREST.

Queenie

Completely agree! Good point, well presented.

In fact, when I read the title I was all ready to reply with:

What? You're 18yo and you WANT DEBT??????

Phew, glad I misread the emphasis on the title.

newfoundglory

Hmmm, not sure I agree.

Credit is quite a powerful thing (just ask the credit card forum regulars). The first thing I did when I was 18 is get a decent bank account with a proper debit card - nothing wrong with that - I had no need for an overdraft at all because I was never going to borrow; so I didnt get one. I got a cash back credit card less than a year later.

If you are sensible, the best place for your regular spending is always going to be on one credit card which rewards you for paying it off in full every month - not falling into the trap of spending money in your current account and credit card together - all spending in a single place so you can see it easily, viewable online so you can check you arent over spending. You get a full itemised list of where you have spent every month, and a little financial reward in the form of cashback for doing so.

I'm gonna say getting a decent bank account and a credit card and USING THEM SENSIBLY is something everyone should do before they hit 20.

braken2000

thank you newfoundglory i agree with you, im 18 and looking for credit. I dont want it to buy extravagant items or run myself into debt but to actually get myself onto the credit rating ladder. I have tried to get a decent current account and found myself refused due to not having any credit history. I fully intend to use it sensibly and know from other peoples mistakes not to misuse credit facilities. I think it is important for people at 18 to get on the credit ladder so when you come to work or go to uni you can apply for better services when you need them.

skylight

Its society today. (god I sound like my Nan!!)

Its a want it now society - kids leave home and leave parents who these days have everything and they too want everything, without realising that they actually have to work for it. I balme the parents! Most dont teach their kids money issues . Most kids/teens ask for things and most get.

And yes - I have been there done that!

thaylock

Completely agree with frepol, if you can't afford it, don't have it. Credit has it's uses but people use credit for the wrong reasons, i.e. nice holidays, nice cars, nice clothes, e.t.c. Use credit for practical reasons, not for quick personal self gratification. All the blame can't go on the parents, alot of it has to do with excellent marketing & peer pressure. Braken2000, sorry to say mate, but you are talking complete garbage.

jonesMUFCforever

braken2000 wrote:

thank you newfoundglory i agree with you, im 18 and looking for credit. I dont want it to buy extravagant items or run myself into debt but to actually get myself onto the credit rating ladder. I have tried to get a decent current account and found myself refused due to not having any credit history. I fully intend to use it sensibly and know from other peoples mistakes not to misuse credit facilities. I think it is important for people at 18 to get on the credit ladder so when you come to work or go to uni you can apply for better services when you need them.

What makes you want to get onto the credit rating ladder? Does it mean that you are a better person for it compared to someone's who's not?Does it help you get a better job?
I have worked at the same place for over 20 years and have never tried to get myself on the credit rating ladder!I haven' t done too bad, never been refused for credit,mortgage or loans, all I did however was to leave school get a job, worked my way up, saved when I could, spend when I could afford and be careful of how much was o/s on any credit at any one time.
What better services are you on about?If you are 18 starting a job (or uni as a student) then banking is very simple. Get your wages in spend a little save as much as poss. and enjoy life before you are tied down.
On the other hand you may be the type of person who likes showing off to his mates 'hey look at me chaps I have a Gold card, I must be better than you 'cause you don't have one'. This is of course complete b******s
Eric

braken2000

im only passing on what 3 banks/bs have told me, i tried to get an account with them and they told me what i put here, its not having the card thats the problem, its how you use it which is where the problem comes in.

braken2000

oh yeh because i have a gold card im better than everyone else, yeh thats what i said wasnt it, i think not, im just acting on what i have been told, and of course the first thing you say to people in the pub is 'look at me, look at this card iv got its better than yours' im sorry im not that kind of person,

mrcow

braken2000, please don't worry about getting a bank card/credit card etc. From what I understand of your position, you are 18, and taking A-levels, hoping soon to go to university.

Trust me.....concentrate on getting the best possible A-level results you can and going to the university that most attracts you. Once accepted in August, banks will be tripping over themsleves to offer you a student account.

Barclaycard will also be pushing students to get a Barclaycard (with about £300 limit).

You don't even have to do this in August - just wait until you get to uni - loads of students apply for bank accounts (their first ones!) during Freshers week at their local branches.

By the time you leave university, you will probably have a wopping overdraft, a student loan and probably a bank loan - more debt than you could possibly wish for to get a credit score. It will take you many years to pay it off, and you won't begrudge a penny of it, as you will have had such a good time on the money and will have learned more about life and people than you care to remember.

Once you start work, and paying off that debt, again, banks/ credit companies will be fighting over your business. It's how they make money.

Chill out - this is a friendly site. No-one's having a go - honest!

braken2000

that sounds like a much better idea, it seems that i should know everything about credit ratings and stuff, well i dont so thats why i ask for help and i was only acting on what several people have told me, that freshers thing sounds like a better idea, and of course to those who said i was basically talking b****cks should remember that i have not been to university, for a while, well never and find it hard to get any advice at all, so im sorry if i am talking rubbish but as i said before im only acting on what iv been told, thank you mrcow, you have been a great help