Confused Student

Kathryn_Ayre

Like most students I have no clue about credit cards and credit cheques etc. However, I had heard that if you got a credit card, and paid a regular bill of with it (say a mobile phone bill) then this would help contribute to your credit rating - which YEY sounds fab.

However, I'm trying to do a bit of research, and this is an issue that's cropped up many times before that as a student I now have many different addresses (term time and non-term time) as well as more than one bank account.

I see that when I'm making an application (I did a practise check on money supermarket) I need to put in all my previous addresses for 3 years, however I am legally register at my parent's house - BUT many of my bills (in regards to utilities which are in my name for the student property) are at another address. I had read that multiple addresses may de-funk me in the lenders eyes.

Furthermore, I have more than 1 account (to help separate bills) and there is only ever space for 1 bank account.

Basically, I'm confused, I can't put all my addresses down as they basically overlap unbelievable amounts and give a conflicting picture, and I can't put all my bank details in AND I'm a student who only works part-time non-term time.

HOW am I meant to be able to apply for these things?!

Super_Whiskey

Some banks offer students a 'student' credit card which usually has a low limit on it. If you feel you are in a position to pay it off every month then yes it will help with your credit history as it shows you can borrow money and pay it back. There's no 'credit score' as such because different lenders look for different things and while one lender might turn you down, another will accept you.

In regards to the multiple accounts, are they all with one bank? If so, go to them first and see what they can offer you. Also, don't pay any bills with it as a couple of banks offer cash back for paying your bills by direct debit from one of their accounts! Use it for the odd purchase/day-to-day spending whatever you're most comfortable with.

grumbler

Kathryn_Ayre wrote: »

... I had read that multiple addresses may de-funk me in the lenders eyes.

This is correct.
Ideally, you want only one active address reported to CRAs and this address to be the same as where your are registered to vote.

ViolaLass

You use more than one account to separate bills? Why not just have one account for paying bills?

System

You are best using your parents address (where possible) as this will be stable plus you can put status as student with X amount of income.

A student or standard card with your main bank will probably be easiest to obtain.

jde-tv

Always Apply with your parents address Also most phone contacts are direct debits so you wont be able to pay that using a credit card. Just spend on it as you would your debit card and then pay it off straight away. If you are employed then apply for any card really, if not I would listen to other people and get a student bank account with attached credit card, that's what I did, went with NatWest.

SLZ

jde-tv wrote: »

Also most phone contacts are direct debits so you wont be able to pay that using a credit card.

You're given the option at sign up to go for DD or bill me later, bill me later is an automatic rejection so always say DD but you can pay your telecoms bills with credit card. I do it all the time.

Jeems

Parents address + online statements = job done

enjoyyourshoes

Dont forget to get yourself on the electoral register at same address as this is critical first step.

If do get CC, account for any purchases as you would normally with switch/contactless/SO/DD etc daily on your bank reconciliation. Thus you have the cash to fully pay off on statement date. Set up DD for full settlement monthly.

Don't just do minimum payment as interest can be crippling, don't think my limit is £1500 I will go any buy this jimmy choo shoes I don't need but lust over. Spend within your own financial envelope.

Start saving, I know no good for credit score, but starting a help to buy ISA now will put you in good position when you want your own home. Look into investing for the long term 10 years + in your own S&S ISA.

dresdendave

jde-tv wrote: »

Always Apply with your parents address Also most phone contacts are direct debits so you wont be able to pay that using a credit card. Just spend on it as you would your debit card and then pay it off straight away. If you are employed then apply for any card really, if not I would listen to other people and get a student bank account with attached credit card, that's what I did, went with NatWest.

If the purpose of the card is to build a credit history, do not pay transactions off straight away. You wait until you receive a statement, then pay the statement in full, either immediately if you wish, but certainly before the due date.

Dobbibill

Ideally a main address and a correspondence address(s) is your best option while you are a student. They will be looking for 3 years history so parental address would normally be fine.

Where are you registered to vote? Parental address or student address?