Potential CC for a 3rd-year student?

ConnorH

Hi!

I've been wondering over the past few days about building up my credit rating for the future, for whatever reason it may come to be. I don't want come to a point in my life when I need credit, but because I have an in-existent credit rating, I'm unable to. I have looked around these forums, as well as other places, and come to the conclusion a credit card used cautiously will be the best bet in building up my credit rating.

Some information about me, though. I turn 21 in September, just as I begin my third and final year in university. I have a zero-hour contract job, which is typically at least 3 days a week, but as the summer holidays begin, it'll start ranging from 4-6 days a week. I live at home, so contribute weekly. I have one direct debit for my mobile, and my own savings which I'll be transferring into my first ISA tomorrow (:j). - I'm not too sure how much information would be beneficial, so I'm telling a lot!

I plan to pay off every monthly bill I get in full every time. I do not need a credit card, but merely want to build a stable credit rating. I'm just not completely sure if a credit card would be the best solution for someone in my situation, and if it is, which one would be ideal for me? - Ideas?

If you have any questions which may help you help me, then fire away!

Thank you in advance.

grumbler

The bank you have your current account with is the first place to ask.

rb10

A credit card is a good idea, as long as it doesn't encourage you to spend more than you would have spent otherwise.

Set up a direct debit with the credit card provider to pay it off in full each month. When you get your first statement, make sure the DD is showing up on it (if not, then make a manual payment). DDs sometimes take a few weeks to get set up.

To help your credit rating further, make sure you are on the electoral roll at the same address that you use for your bank account and credit card.

ConnorH

grumbler wrote: »

The bank you have your current account with is the first place to ask.

I may make an appointment to speak with someone at my local branch, that is a good idea. They may be able to offer me more specified advice, although wouldn't it only be relevant to their particular bank, and not other alternatives?

rb10 wrote: »

A credit card is a good idea, as long as it doesn't encourage you to spend more than you would have spent otherwise.

Set up a direct debit with the credit card provider to pay it off in full each month. When you get your first statement, make sure the DD is showing up on it (if not, then make a manual payment). DDs sometimes take a few weeks to get set up.

To help your credit rating further, make sure you are on the electoral roll at the same address that you use for your bank account and credit card.

I'm quite good with my money, so having a credit card wouldn't tempt me into any other purchases I wouldn't necessarily make otherwise.
I would set up a DD, makes things a bit more automatic doesn't it.
I'm already on the electoral roll and it's for the same address as my debit card.

Cheers for the responses.

rb10

ConnorH wrote: »

I may make an appointment to speak with someone at my local branch, that is a good idea. They may be able to offer me more specified advice, although wouldn't it only be relevant to their particular bank, and not other alternatives?

They won't give advice of any kind. They are purely a salesperson who is able to open an account.

It's much easier to just apply online.

pichon

I don't know about advice, but it is worth checking with your local branch and talk to them as they may give you a credit card based on your "good" history with bank.

Cycrow

as a student, do you have a student current account ?

if you do, then you should be able to get a credit card from that account, most student accounts include credit cards.

if not, it is worth getting one as they usually have interest free overdraft which you dont get on other current accounts

Maestro.

Who do you bank with? My experience is that some banks are very generous in considering your circumstances with them, whereas others don't consider it at all. For instance my own bank didn't entertain the fact I'd had an account with them for years and a well managed overdraft - they treated me as a new customer and then had the gusto to say "no way Jose, we can't credit score you". So depending on who it is you mightn't be as lucky as you think.

ConnorH

Cycrow wrote: »

as a student, do you have a student current account ?

if you do, then you should be able to get a credit card from that account, most student accounts include credit cards.

if not, it is worth getting one as they usually have interest free overdraft which you dont get on other current accounts

I do not have a Student account, no. I have an everyday current account. I've been fortunate enough through being good with my own money to not need the use of an overdraft, therefore Student accounts don't appeal to me.

Maestro. wrote: »

Who do you bank with? My experience is that some banks are very generous in considering your circumstances with them, whereas others don't consider it at all. For instance my own bank didn't entertain the fact I'd had an account with them for years and a well managed overdraft - they treated me as a new customer and then had the gusto to say "no way Jose, we can't credit score you". So depending on who it is you mightn't be as lucky as you think.

I bank with Santander, I've had my current account with them since I was 16 and began with Abbey, which as we all know merged into Santander. For approximately a year I've also had an eSaver with Santander also, however today I've just transferred the contents of that eSaver into a newly-just-opened Virgin Money Cash ISA.

From this, I guess my best bet is a Santander credit card.

DunPin

Barclaycard Initial coud be a good starting point, your bank is also a good starting point too, I see you said you bank with Santander, the 123 is a good card, better than the Initial so try for that if you can

Maestro.

The 123 card has a fee, and going by the OP's intended use his cashback won't cover it.