First credit card recommendation.

desthemoaner

Not for me, but for my daughter. I've had loads of the darned things.


She's in her early 20s, works full time for the NHS, earns about 15k pa and rents a room in property shared with friends. She has one store card with a balance of around 200 quid and an interest rate of 28 per cent. She was hit with a missed payment charge on that card about a year ago, but set up a direct debit and has had no problems since.


We've talked about balance transfers, low and nil interest rates, introductory rates and all that malarkey. I know she would use the card wisely with the exception of the odd snap purchase that most of us are vulnerable to when given credit, and she would be content with a modest credit limit. I don't know how likely it is that she'll be eligible for some of the better deals because she's unlikely to have accumulated much in the way of a credit score, but any recommendations for suitable cards would be most welcome.


Which brings me to another important question. If she applies for cards and is turned down, does that have a negative effect on her credit score?

Thanks in advance.

CLAPTON

desthemoaner wrote: »

Not for me, but for my daughter. I've had loads of the darned things.


She's in her early 20s, works full time for the NHS, earns about 15k pa and rents a room in property shared with friends. She has one store card with a balance of around 200 quid and an interest rate of 28 per cent. She was hit with a missed payment charge on that card about a year ago, but set up a direct debit and has had no problems since.


We've talked about balance transfers, low and nil interest rates, introductory rates and all that malarkey. I know she would use the card wisely with the exception of the odd snap purchase that most of us are vulnerable to when given credit, but she's savvy enough to cope well within a modest credit limit. I don't know how likely it is that she'll be eligible for some of the better deals because she's unlikely to have accumulated much in the way of a credit score, but any recommendations for suitable cards would be most welcome.


Which brings me to another important question. If she applies for cards and is turned down, does that have a negative effect on her credit score?

Thanks in advance.

try her bank

but set up DD for the FULL amount on the card

any application for credit shows on her record but not whether succesful or not

if she is liable to make an unwise 'snap' purchase then a CC is NOT for her:

Superscrooge

With limited credit history and a missed payment. It is unlikely she will get the best offers.

I suggest trying the eligibility checker to see which cards she is likely to be accepted for

https://www.moneysavingexpert.com/eligibility/credit-cards/

Lots of credit searches in a short space of time tends to be viewed as a negative. Applying for just one card and being turned down will not have much effect on credit history.

grumbler

desthemoaner wrote: »

....She has one store card with a balance of around 200 quid and an interest rate of 28 per cent. ....

....I know she would use the card wisely....

I wouldn't say that carrying a balance on a 28% card is wise, even if it's just £200.

desthemoaner

The balance on the store card is coming down, admittedly slowly, but costing her little interest in real terms given the small amount involved. Point taken, of course.

Many of us are prone to snap purchases now and again, but in her case I'm sure they won't amount to much even when they happen. In short, I trust her to be responsible with the card, although we would of course start off with a low credit limit to be on the safe side.

Advice taken about eligibility checking and the likely effect of being turned down for several cards. We'll narrow it down to the more likely options, and apply for a maximum of two before giving up.

grumbler

desthemoaner wrote: »

Many of us are prone to snap purchases now and again, ...

Those who are prone, are better not to have a CC or have it frozen in a brick of ice in the freezer.

CLAPTON

desthemoaner wrote: »

The balance on the store card is coming down, admittedly slowly, but costing her little interest in real terms given the small amount involved. Point taken, of course.

Many of us are prone to snap purchases now and again, but in her case I'm sure they won't amount to much even when they happen. In short, I trust her to be responsible with the card, although we would of course start off with a low credit limit to be on the safe side.

Advice taken about eligibility checking and the likely effect of being turned down for several cards. We'll narrow it down to the more likely options, and apply for a maximum of two before giving up.

sadly you are giving her the wrong financial guidance

she should be SAVING a little money each month so she can AFFORD the odd extravagance
she needs to learn these vital lessons now before she gets into serious debt.

whilst it is true that there are many who haven't learnt how to manage money, its not a good idea to encourage her along the same road.

given the smallness of the sum then it should be really easy to pay off in full and never borrow again.

desthemoaner

Thanks again.


I think I may have gone to too little trouble to emphasise the level of trust I have in the potential for my daughter to conduct her financial affairs responsibly.


I have two children. In the past my son has been wayward with money, extremely so. He has now learned his lessons, is in a good job which pays well and is saving up to get married. My daughter has learned from his example and is far more conscientious. This doesn't mean that on occasion she won't be likely to buy something on impulse, but I doubt very much whether that something will ever be significant or expensive enough to get her into trouble.


I've explained to her the way credit cards work, and I know how they work because I've had them myself, and done the "interest rate tart" thing. I know that if used wisely they can be a useful financial tool rather than a burden. We're determined to start with a card with a low credit limit, and as far as I know she understands why.


We actually applied for a couple of cards today but she was turned down. We had a chat about it and after checking the "reasons to be turned down" on this website, concluded that one possible factor in her failure to gain the trust of a CC provider is that she may not have registered on the electoral role at her address. We've now taken care of this and once the council have confirmed her registration we might have another go.


Or we might not, and might instead take your other advice and put in place some sort of savings plan.

StripeyMiata

grumbler wrote: »

have it frozen in a brick of ice in the freezer.

That's actually not a bad idea, I assume that doesn't affect the chip/magnetic strip?

Sncjw

Try her bank. I got my first one from them. I work for NHS also and also earn same amount and I got a 2k limit.

I see why cc can be bad because I got mine on the 1st Jan the statement has appeared yesterday and I have until the 29th to pay it off. I have plenty in the dc account to pay it. Always have a reserve if possible. Use it for day to day spending. Treat it like q debit card because you will be paying it back anyways

desthemoaner

I suggested she went to her bank but she doesn't want to do that, and I don't blame her. I was with the same bank for years till we moved to Santander, and their interest rates and range of savings accounts were never better than derisory.

We're going to wait and see whether it was in fact a failure to register for the electoral roll at her address which has gone against her. If it isn't that, then it can only be one, some or all of the following: she hasn't accumulated much of a credit history, she is young, she's not earning a huge amount and has had a single late payment charge on a store card.
I suppose we could also pay for a credit check, but we'll have a think about it.