Using a credit card for financing the first months of a graduate job

huehuehue

Hello

I am hoping for some advice on how best to cover living costs during the first few weeks of a graduate job. I have been told by my Dad that I should maybe consider a credit card but I'm not sure this is the best option for me or even if I'd be accepted for one because I don't begin working for a few weeks.

A little background information:

I'm due to begin work in 3 weeks, and will not be receiving my first paycheck until a month after that.

Like most students I'm penniless and neither of my parents are in a position to be able to provide any financial assistance.

I have been into my bank (Lloyds) to ask about an overdraft however they say they cannot provide one until wages begin going in.

As well as living costs I am going to need to cover a deposit on a room/flat which will potentially be a few months rent (outside London near Gatwick).

Any advice or pointers anyone can offer would be greatly appreciated.

Voyager2002

Are you signing on for JSA? If so, ask at the Jobcentre: they have a fund that can be used for things like office clothes and transport to your new job.

A credit card is unlikely to be appropriate. Explore the Lloyds website and see if they offer a graduate account, or telephone their call centre (branch-based staff are unlikely to know much). Otherwise, do a search for graduate accounts and see if another bank could help you.

Other suggestions: use the next three weeks to build up a little money somehow (bar work; shelf-stacking; gardening...)

See if you can rent a room in a shared house or a family's spare room so that you have less need for a deposit and rent in advance.

And let the HR people at your employer know about the problem in case they have some policy to help you.

Doshwaster

Getting a credit card will help you with some of the costs and it's always good to start building up your credit rating but but it may bot be the best way to fund a rent deposit. If it's your first card then you are unlikely to get a 0% rate one.

I remember my first graduate job. It's a tough time - you are making money for the first time but you have a lot of up front costs and that first pay slip seems forever away.

I'd also talk to your bank to see what overdraft facilities you can have while you settle into working life. They will probably also try to sell you a graduate loan. These can be useful but just make sure you can cover the repayments and don't overstretch yourself. It's just too easy to start spending money when you are earning for the first time but if you aren't careful you will end up poorer than you were as a student.

huehuehue

Thank you for the replies, these have been extrememly useful.

Are you signing on for JSA? If so, ask at the Jobcentre: they have a fund that can be used for things like office clothes and transport to your new job.

Im not on jobseekers. I didn't know about this but I think i'd feel dishonest claiming through them as I already have the job. It is something I will definitely keep in mind though.

A credit card is unlikely to be appropriate. Explore the Lloyds website and see if they offer a graduate account, or telephone their call centre (branch-based staff are unlikely to know much). Otherwise, do a search for graduate accounts and see if another bank could help you.

Thanks, I have taken a look at graduate accounts and most seem to offer what I currently have with my co-op student (/soon to graduate account) i.e. a 2k overdraft so I'm not sure how worthwhile it would be to switch to somewhere else.

I'd also talk to your bank to see what overdraft facilities you can have while you settle into working life. They will probably also try to sell you a graduate loan. These can be useful but just make sure you can cover the repayments and don't overstretch yourself. It's just too easy to start spending money when you are earning for the first time but if you aren't careful you will end up poorer than you were as a student.

Lloyds does appear to offer a graduate loan but only if you've had a graduate account with them for 3 months. My student account is with Co-op and they don't list an alternative so this might not be something I can go for.

I remember my first graduate job. It's a tough time - you are making money for the first time but you have a lot of up front costs and that first pay slip seems forever away.

Definitely, I'm nervous enough about it as is without piling on uncertainty about money! I will of course be making as much effort as possible to get some money saved up in these coming weeks but the prospect of going away with only pocket change and no student loan payments coming in doesn't fill me with confidence.

Thanks again for the advice and cautions about the credit cards. I will probably spend tomorrow speaking to banks and seeing what options they propose.

Tixy

Does your employer offer any relocation expenses? or relocation loans? Or an advance on your first pay packet?

It also may be worth talking to them regarding accommodation in the early months.
At large firms they may have a notice board where they can advertise for someone prepared to rent a room for the first few months, or may already have staff who have offered this in the past to new starters. This could limit your outgoings initially and give you time to find an area you would like to rent longer term.