Credit Card for 18 year old with no credit

TeeMac67

My daughter has recently turned 18 and therefore has had no previous credit. She is looking to apply for a credit card, purely, to build up a credit rating and plans on using it and paying it off immediately. She works part-time and does not earn very much - can anyone recommend a card that she may be accepted for?

reclusive46

Pretty much the only option is Vanquis. Even Capital One want to see some sort of previous history now.

Herbalus

Usually your own bank is recommended for your first card, as they know what type of customer you are. However it depends if she's had a bank account and for how long.

If the only reason you want it is for a credit history, there is no hurry. Waiting 1-2 years until she earns a bit more (tesco want £5,000 income for example), won't hurt.

If she studies, then some student accounts come with a student credit card that she can apply for later in the year.

TeeMac67

Thank you .. She really wants to build up credit now though as she will be looking to move away and rent a flat and they may require credit checks.

She has banked with Royal Bank of Scotland whilst a student and just recently upgraded to an "adult" current account so maybe they may be the best to approach first of all.

I am aware that Tesco Bank require £5 or more income which is a shame as they would have been my first choice - great credit card!

I appreciate your replies - I will also look at Vanquis but worried this may have a detrimental effect.

reclusive46

TeeMac67 wrote: »

I appreciate your replies - I will also look at Vanquis but worried this may have a detrimental effect.

Other providers can't see who lent the money. When other lenders view the credit report it will just say "Credit Card", so it won't look any worse or better than any other lender.

TeeMac67

My credit report shows the name of the lender ?

reclusive46

TeeMac67 wrote: »

My credit report shows the name of the lender ?

It shows the name to you, yes. But lenders can't see this when they search your credit report.

TeeMac67

Ah Ok - wasn't sure about that. However, if a copy of your report is requested by a lender it will show, yeah?

reclusive46

TeeMac67 wrote: »

Ah Ok - wasn't sure about that. However, if a copy of your report is requested by a lender it will show, yeah?

Only you can view the names of lenders. The credit report that lenders see contains different information and is not an exact copy. Certain things are ommitted (Like the name of lender) added.

It would also be very unusual for you to have to get your own credit report and give it to a lender (If that is what you are referring). I've never heard of a credit card company or bank asking for this, they subscribe to the credit reference agencies themselves.

TeeMac67

That's fab - thank you!

Fruit_and_Nut_Case

reclusive46 wrote: »

Other providers can't see who lent the money. When other lenders view the credit report it will just say "Credit Card", so it won't look any worse or better than any other lender.

That's interesting; I didn't know that.

If this is the case, why do people say that taking out a Payday Loan is like a red flag on your report? (If only the loan is seen and not the lender.) Serious question.