18 Yrs Old Finally!!! What are the advantages?

lazymoezy

Basically, looking to get a credit card, are there any good deals out there for students? What shall I look out for?

I wont be using it in stores or anything, most using it to buy from ebay and use it as backup. Something with a low interest charge? Maybe a 'freebie' when I sign up?

Not much knowledge on all the deals out there, used my sisters card for the past year or so, seeing I am old enough now, thought I should open my own card up.

I have a current account with Barclays, any need to change this? Not a load of money in there anyway (not suprising).

Any help is welcome!

-MoE-

lazymoezy

Barclaycard Simplicity? Is that any good? Low interest rate. I would be paying via ebay so that counts as purchases,roughly £200 a month spent, atleast 75% if not 100% of that will be paid back by the next month.

I only spend if I know I can get the money to pay it off or expecting some money to pay it off.

Wont need those balance transfer cards as I'm not lokoing to transfer the balance onto another card. Won't mind it though.

Has that narrowed things down?

Guaje7

To be abrupt.. It sounds like you want one more than you need one.

I'd seriously consider your motives for getting one.

lazymoezy

I think I need one BECAUSE I use my sisters eBay account with her card all the time. So, think its about time I get my own eBay account and my own card, I make quite a lot of purchases on eBay and mostly back it up via credit card, so, defiently need one. The question is which one? Not sure which to pick.

I thought there would be decent ones for students out there. Maybe thats for bank accounts only?

CLAPTON

Your best bet for getting a CC is to ask your own bank as they already have a fiancial relationship with you.

Most CC companies wouldn't give you one as you have no income and dont already have a CC. (Little paradox there .. because you dont have one you have no credit history of payments so they see you as high risk and wont give you one.)

Set up direct debit to pay the full amount each month so you dont pay any interest.. also that means the APR doesn't really matter as you will never pay any interest anyway.

Used well CC are very useful, used badly they are the start of a spiral of debt and problems.

elite_2

I wouldn't advise getting a credit card, if you do make sure you pay off the entire balance every month as CLAPTON says.

You can fund ebay purchases with a debit card you know...

BigBouncyBall

however ebay + CC = protection if things go tits up

bargains83

lazymoezy wrote: »

I thought there would be decent ones for students out there. Maybe thats for bank accounts only?

The cards for students are far from decent. You will most likely be eligible for Barclaycard student, which is 14.9% APR not all that bad when you consider that the average credit card is now above 15.9%. The fact that you have a relationship with Barclays should outweigh the fact that you have no credit history.

Failing that its Capital One classic at a stonking 34.9% APR. Of course the APR doesn't matter if you can manage to clear payments in full month on month.

From experience, unless you are a university student with a full student account with a bank then these are the only two cards you'll be able to get easily at 18 with no proven credit record. Of course, these will strengthen your history if you manage them well and then you can move on to better cards.

Bokkens

Get yourself on the electoral register with your council,even if it is at your parents address and keep it updated each time you move.
Stay out of debt and use the credit cards you do get to your advantage and for a particular purpose and never use them for withdrawing cash.
Alway pay off in full each month with a direct debit for the full amount.
manage your account on line.
good luck.

lazymoezy

Thanks for the advise! Should be going Uni (depending on my grades ). How does the monethly cycle work with credit cards? Say I use it to buy something for £200 on the 15th on July 07, do I have until the 15th of next month to pay it off? or do they work differently? i.e 25 day cycles?

CLAPTON

it basically works this way

There will be a 'statement date' , lets say 16th of the month.
Everything spent before the statement date will appear on your statement which will typically arrive 3 or 4 days afterwards...say 20th.

The statement will say when you must pay by .. typically about 20-25 days after the statement date, so could be 10th of the following month.

The payment of at least the minimum amount, must arrive by this date...so in practice you must make the payment 4 or more days before to allow time for the payment.
If however, you set up a direct debit (which I strongly recommend) then they will take it from you bank account without you having to do anything.

Then the cycle continues with a new statemant being produced on the 16th of that month which will show your purchases and your payment and if you haven't paid the full amount any interest.