Xbox One on Credit at 18?

woahmike

I turned 18 in February, and so am eligible to apply for Credit with companies now. I want to get an Xbox One on credit from Currys in the UK. The price is £399, but on credit it is six months interest free, and you start paying £13 after 6 months.

I am currently employed as a paper boy (recently my contract with another employer finished) and earn £520 a year before tax (on the wrong tax code at the moment too) but my household annual income is well above £20,000. The paper round is paid directly into my account.

I am soon to start a job on £25,000 annually, but won't be paid for the first three months as it's training. My intention is to get the Xbox One on credit, but to pay it off immediately as soon as I get paid. With Currys you pay an initial £40 deposit, and there is a £25 fee for paying off early. I want to do this so that it will increase my credit rating. There is no question about weather I can afford the repayments or not, as I 100% can but I understand that it is based on my credit history etc, and right now I'm as clean as a whistle, but have nothing to my name either.

Also, I don't think i'm on the electoral register, yet :cool:

MisterBaxter

The fact that you have no credit history can make getting credit almost as difficult as having a poor credit history. If you do get approved and it's on six months interest free but with early payment penalty why not just put the money to one side and pay in full at the end of the six month period and avoid the £25 penalty.

Not being on the electoral register can be a major issue as well, but if you are still living with parents then you may find that they have already listed you on the annual return. I think you have to name all persons in the house who are approaching 18.

If you can't get credit then it's a case of waiting, saving and then buying, which to be honest isn't a bad lesson to learn in life.

DCFC79

woahmike wrote: »

I turned 18 in February, and so am eligible to apply for Credit with companies now. I want to get an Xbox One on credit from Currys in the UK. The price is £399, but on credit it is six months interest free, and you start paying £13 after 6 months.

I am currently employed as a paper boy (recently my contract with another employer finished) and earn £520 a year before tax (on the wrong tax code at the moment too) but my household annual income is well above £20,000. The paper round is paid directly into my account.

I am soon to start a job on £25,000 annually, but won't be paid for the first three months as it's training. My intention is to get the Xbox One on credit, but to pay it off immediately as soon as I get paid. With Currys you pay an initial £40 deposit, and there is a £25 fee for paying off early. I want to do this so that it will increase my credit rating. There is no question about weather I can afford the repayments or not, as I 100% can but I understand that it is based on my credit history etc, and right now I'm as clean as a whistle, but have nothing to my name either.

Also, I don't think i'm on the electoral register, yet :cool:

Won't happen im afraid, focus on your training. Get your parents to get it for you.

Saving up is your only way, whats the fascination with credit when turning 18 these days.

Mr_F_Dorsetty

Woahmike:

I can only say what I said to my now adult kids... stay away from debt.

Further, I also said to them to only ever take out credit for an investment purpose, something that in the medium to long term will more than repay the interest it cost you - A house or flat, precious metals or other such goods & art.

What seems like a great idea today in 3 months time might not seem such a good idea, but you'll still be stuck with paying for it. But then you'll want something else and bingo... welcome to the debt slide and down you go.

'In debt' is a miserable way to live. Look around this forum Mike, see how many people wish they had never even heard the word 'credit' let alone taken it out. They are just a tiny fraction of all those in the UK who are drowning in their debts.

Obviously do what you like, but I will say that my kids are now 22 and 23yrs old, they have no other debt than their mortgages, as they both own property but neither has an XBox; they're too busy working.

woahmike

Mr_F_Dorsetty wrote: »

Woahmike:

I can only say what I said to my now adult kids... stay away from debt.

I also told them to only ever take out credit for an investment purpose, something that in the medium to long term will more than repay the interest it cost you - A house or flat, precious metals or other such goods & art.

What seems like a great idea today in 3 months time might not seem such a good idea, but you'll still be stuck with paying for it. But then you'll want something else and bingo... welcome to the debt slide and down you go.

In debt is a miserable way to live'. Look around this forum Mike, see how many people wish they had never even heard the word 'credit' let alone taken it out. They are just a tiny fraction of all those in the UK who are drowning in their debts.

Obviously do what you like, but I will say that my kids are now 22 and 23yrs old, they have no other debt than their mortgages, as they both own property but neither has an XBox; they're too busy working.

Just reading this has changed my view, I think you're right. Thankyou for your input.

bigadaj

Wonder what the job paying £25k at 18 is?

The Xbox could be paid for out of the first months pay anyway.

woahmike

bigadaj wrote: »

Wonder what the job paying £25k at 18 is?

The Xbox could be paid for out of the first months pay anyway.

Train Conductor, basic pay is £25,000 PA

MisterBaxter

Mr_F_Dorsetty wrote: »

Woahmike:

I can only say what I said to my now adult kids... stay away from debt.

Further, I also said to them to only ever take out credit for an investment purpose, something that in the medium to long term will more than repay the interest it cost you - A house or flat, precious metals or other such goods & art.

What seems like a great idea today in 3 months time might not seem such a good idea, but you'll still be stuck with paying for it. But then you'll want something else and bingo... welcome to the debt slide and down you go.

'In debt' is a miserable way to live. Look around this forum Mike, see how many people wish they had never even heard the word 'credit' let alone taken it out. They are just a tiny fraction of all those in the UK who are drowning in their debts.

Obviously do what you like, but I will say that my kids are now 22 and 23yrs old, they have no other debt than their mortgages, as they both own property but neither has an XBox; they're too busy working.

My only observation on this would be that it does seem that in order to get credit you need to have had credit and managed it properly. If at some point in years to come you look to get a mortgage then it can prove very difficult if you have no credit history at all. It does seem that some well managed credit on your file is a good thing. A mobile phone on contract, a credit card used and paid in full each month. It hadn't used to be like this, when I had my first mortgage it was about deposit and income, credit history only seemed to be a consideration if there were nasties in there, now even for a remortgage I was advised to get a credit card to bolster my credit report, I wasn't even looking to borrow more just a better rate on a fixed rate than my current lender was offering. I think the sad reality is that at the moment you may need some credit although what you have it for and how you use it and how you manage it is the important bit, get it wrong and you'll be paying for years to come.

woahmike

MisterBaxter wrote: »

My only observation on this would be that it does seem that in order to get credit you need to have had credit and managed it properly. If at some point in years to come you look to get a mortgage then it can prove very difficult if you have no credit history at all. It does seem that some well managed credit on your file is a good thing. A mobile phone on contract, a credit card used and paid in full each month. It hadn't used to be like this, when I had my first mortgage it was about deposit and income, credit history only seemed to be a consideration if there were nasties in there, now even for a remortgage I was advised to get a credit card to bolster my credit report, I wasn't even looking to borrow more just a better rate on a fixed rate than my current lender was offering. I think the sad reality is that at the moment you may need some credit although what you have it for and how you use it and how you manage it is the important bit, get it wrong and you'll be paying for years to come.

I took advice from my Dad, and he said store cards were also useful to begin getting credit. Apparently it's pretty much impossible to get a phone contract without a credit history at the moment. I've applied for an Argos card, with the intention of literally spending a tenner a month and paying it off. Just have to see I guess. Thanks for the advice.

Coveredinbees!!!!

I don't know who said it, I might have even made it up myself but Money is the most expensive thing to buy. It is hard to save but when you get there the xbox will probably have come down in price.

DCFC79

If you still want 1 set yourself a challenge to save x amount each week, you might even get bored of the saving for it and put it off for a while.