First Credit Card

allinsonp

Hi, I couldn't find this thread anywhere else but apologies if it has already been mentioned. I will be turning 18 in a little over a month and I have already planned on signing up to the Halifax Student Account as I have an existing account with them and the interest-free overdraft seems to be competitive.

I wonder if anyone could make a recommendation on what I should do about getting a credit card. Is there any benefit of having a Halifax One Card to go with their account or would it be better to wait until I'm actually in university and then sign to the Student Barclaycard which looks to have a better rate of interest but I'd like to get my credit rating started as soon as possible.

Any advice would be greatly appreciated

colin79666

Go for whatever card suits you best. Don't be overly swayed by introductory offers and most importantly only use your cc when you know you either need it to pay for an essential (food, clothing etc) or you know you can afford to pay it off when the statement comes.
Far to many students are spending like crazy on credit cards then finding they can't pay them off. Going bankrupt does you credit rating no good at all!

Personally I have a RBS student account and the RBS Mastercard to go with it. I only use it for purchases over £100 where the cc offers extra protection over using my debit card.

My mate has the Egg cashback card - might be worth having a look.

Bokkens

allinsonp wrote: »

Iwhat I should do about getting a credit card.

which looks to have a better rate of interest but I'd like to get my credit rating started as soon as possible.

Any advice would be greatly appreciated

Welcome to MSE,
As you have yet to have a credit card and a long future ahead of you Lesson one is aim to pay no interest at all while using your credit card.
0% offers are what you should be looking at not necessarily the Halifax card there are other cards who will be willing to snap you up.
Lesson two is pay your credit card bill off in full each month so you are not charged interest.
Lesson three is read up on Martin's credit card advice and apply it to your life style.
The credit history /credit rating will soon be established if you pay your credit card bill in full and remain out of debt.
Not easy to do but the power you feel when you spend your own money and owe no money to credit companies is fantastic.
Good luck.

Warriorsith

Hi

I had the same happen to me when I turned 18. Got offered CC and Overdraft, thought great, when mad spending all and it rolled and rolled. 12 years down the line still trying to clear debts.

I realise you may be going to Uni but try NOT to get a CC or an Overdraft. Initially its not your money but you'll be repaying more than your Limits over the following years to come.

Beware, its easy saying this due to hindsight but make sure if you do decide to choose a CC and overdraft that you have a job to help repay and control these accounts.

Good luck in whatever your decision will be.

allinsonp

Thanks for the advice, based on your comments I'm inclined to look around for which CC is best and not only because it is linked to a student account.

One issue which concerns me is that I read in the which report a while ago that certain cards appear to have a really competitive rate of interest but the hidden charges are enormous (Capital One especially).

Is there any benefit in sticking to a bank's credit card or does it make no difference whether you go for say a Halifax or Barclays CC or with someone like Virgin.

Also, as a lot of cards like the SkyCard and the SonyCard are run by MBNA, is the interest and other charges set by the third party or by the issuer?