First credit card at 18

HolaBonjour

Hi all,

I turn 18 in the next couple of weeks and I'm looking into getting a credit card to make purchases

I'm in full time employment as a recruitment consultant earning just over £9000 a year and my salary goes up every 6 months by a couple of grand as I'm a trainee

What would credit card would I be accepted for and what sort of credit limit should I expect?

I currently bank with Santander & Natwest if that helps

Thanks

Ebe_Scrooge

The best thing is to apply to your own bank in the first instance - they can see a pattern of incomings / outgoings, and make a judgement based on that.

Credit limit ? Who knows, the bank will set it when they approve your application.

I would ask the question - why do you want a credit card ? They can be wonderful things if used wisely ( e.g. use for day to day spending, pay off in full every month and receive cashback / loyalty points of some sort. Maybe the odd treat where you pay off it over 2 or 3 months and accept the interest ).

Used sensibly, a CC can enhance your credit history, and allow you to access better deals in the future. But it's most definitely NOT free money, so be aware of how they work. At the very least, set up a DD to pay at least the minimum every month.

Check the eligibility checker on here to see what you're likely to be accepted for.

MrGreen

Hi, I'd say stay away from credit cards, at your age if you've been using a debit card then carry on. You don't NEED to have a credit card, debit cards for everyday use are no different from credit cards and you'll be using money you have and not borrowing from the card provider/s.

Credit cards can get get you into messy situations, just read some of the threads on this forum. I like a a lot of people started with just a£500 limit and slowly over the years (many years) I had ended up with balances of nearly 30k, all paid off and lessons learnt!

I know this is the voice of regret but I'd say to you (and myself at 19 if I could) don't do it!

DCFC79

Just use your debit card, no need for a credit card.

Tixy

A credit card will help you build up a credit history (if used right) and will provide you with the additional purchase protection.

So it can be a good thing if used responsibly and not to buy things you cannot afford to pay for.

Your choices are likely to be your own banks or one of the subprime lenders. (Vanquis / Aqua etc).

HolaBonjour

Hi guys,

Thanks for the replies.

I've used the eligibility checker and has recommend me applying for the initial Barclaycard.

I'd like to state I'm not stupid with money - I tend to use it to build a good credit score.

ricky_v

Try Aqua, they're sub-prime and you'll get cashback on all purchases.

Pay the statement balance off in full. Set up a DD to pay it off in full and make sure there's enough money in your current account to cover the DD.

Hi, I'd say stay away from credit cards, at your age if you've been using a debit card then carry on. You don't NEED to have a credit card, debit cards for everyday use are no different from credit cards and you'll be using money you have and not borrowing from the card provider/s.

My first credit card was when I was in my teenage years a year or 2 after the crash, it was with my own bank. 3 years after careful use of the credit card (i.e paying off the statement balance off in full every month) I was getting 90% LTV mortgage offers 3.5-4 times my gross salary at a good rate.

While the OP doesn't need a CC, it is certainly advantageous in this age of responsible lending, etc if used correctly.

DCFC79

HolaBonjour wrote: »

Hi guys,

Thanks for the replies.

I've used the eligibility checker and has recommend me applying for the initial Barclaycard.

I'd like to state I'm not stupid with money - I tend to use it to build a good credit score.

I wish you luck but you wont be building a credit score.

David301

I had a credit card when I was your age, it was very useful, was able to use it to help start my business and purchase different things that I needed.

Unfortunately as I got into my 20's I had to turn to the credit card at different times due people not paying me on time and shortfalls in cash.

When I met my partner we got a mortgage very easily and I think the credit card history helped with that showing that I could be trusted with money.

We were over stretched on our mortgage and the balance on the card kept going up and up until the minimum payments were beyond our means.

Fast forward to now and i have an agreement to pay £60 a month towards the card debt and it is now under £2000 that i owe on it with all interest stopped. I was very lucky to be able to get an agreement for this without getting a CCJ or a charge on my home.

It just shows that even with the best intentions life has a habit of causing problems and having a credit card available can get you into a whole heap of problems.

Just be very careful!

smdabs

I got my first credit building credit card with Capital One when i was 18. I was very sensible and stuck to the £200.00 limit. I Kept it as low as possible as this is what i (or my parents if necessary at the time) could realistically afford to pay off if i ever got stuck or made a mess of it.

Since then, my credit file has stayed absolutely spotless (I think i did have a missed direct debit default on current account @ 18...but that was it! oh, and nationwide messed up my CC payments, but they removed all of their defaults on my credit report)

I now have 4 credit cards, worth £7500, £10,000, £3000 and £5000 - only one of which has any balance on it (and very easy to clear - using it for the interest free period and keeping the funds in a separate savings account earning interest...i believe it's called 'stoozing' on here) and i have been accepted for a mortgage with no problems what so ever - I am 24 - thanks to building my credit rating from a young age and sticking to it, the banks trust me and my finances.

Do not let people put you off or make you feel like you're unreliable because of your age, i know 60 year olds (*cough* my mother *cough*) who still can't keep track of their finances and have defaulted god knows how many times.

Its individual differences, if you know in yourself that you can be a reliable and will use it wisely and keep up to date with payments - do it! Start credit-building now!

People can be sensible at 16, and people can be completely irresponsible at 40. Age has nothing to do with credit reports and debts, just read some of the threads in the forums!

MallyGirl

I agree - I had a CC at 18 (it was easier way back then) and a mortgage at 24. My 13 yr old daughter has been successfully managing her bank account and debit card for 2 years. I will be advising her to get a credit card at 18 (with the bank she will have 7 years history with by that point) and she will be fully educated on how to use it. She is way more sensible that my brother who is in his 40s.