Credit cards for young people!?

youngmoney3

To cut a long story short im 18 years old trying to save myself a bit of cash by paying my car insurance off all in one go... this is a pretty worthwhile venture as it will save me around £800!!
Im basically looking for a 0% interest credit card for 12 months and i will have paid off the full balance by the end of the 12 month period.
My only issue is alot of companies will only give me around a £600 credit limit when im actually needing around 1700.
Any ideas on how i can work around this are welcome!!
thanks

[Deleted User]

Very unlikely with virtually no credit history. I'd suggest trying your own bank or aqua or Vanquis for a basic card in the meantime.

Cycrow

at 18 i assume you have not had any other credit before ?

have you applied for credit cards before and they offer the £600 ?

i doubt you would get much more than that being young with no previous history.

also very few cards will offer you 12 months for 0% purchases, the ones that do will require a really good credit history

ILW

If the premium is £1700, how are they charging £800 interest?

youngmoney3

for the quotes ive recieved they hike the price up by £800 per year if i decide to pay monthly so its pretty worthwhile just to pay annually if at all possible!

izools

Yeah Admiral (and brands thereof) charge an abominable amount when you choose to pay monthly. My first year's car insurance was £800 but I paid nearly £1400 by choosing monthly!

youngmoney3

yeah its ridiculous!! my parents paid it out of their savings last year and ive paid them back in full over the year which is what id love to do again using a card/loan but its literally impossible! fingers crossed for my visit to the bank tomorrow

kloana

Age is largely irrelevant in lending decisions (provided you're 18+), though the very fact that you're young indicates that you've not yet had the chance to "prove yourself" with credit, and are unlikely to be offered the best deals right now. Bit of a catch-22...

...Not especially helpful for this year's insurance (as you've no time to realistically become the kind of customer that prime credit cards are looking for), but getting any credit card may assist you in building up your profile now, to "passport" you to better deals in future years.

You'd need to actually use any card you obtain. Some will come with awful-sounding APRs, but if you repay your balance in full every month (which is ideal!), interest rates become irrelevant.

The big disclaimer is to only spend money that you can repay in full every month, and if that plan goes wrong - never miss the bare minimum monthly payment!

Good luck.

youngmoney3

Thanks for all your advice guys!
Spoken to my current insurer who has given me an awesome renewal so no need for a credit card at the mo but will definitely look into one in future,
Thank you for your help! :j

opinions4u

kloana wrote: »

Age is largely irrelevant in lending decisions (provided you're 18+)

This is nonsense. Under 25 is far less likely to get credit than over 25.

The rest of your post was bang on.

System

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