First time credit card for mature student with no money problems!

StabiloBoss

I'm a mature student (25, single, living with parents) who decided to return to University full time recently - I am extremely responsible with my finances and decided to finally look into applying for my first credit card. I should have done this a few years ago when I was in employment but was informed that this wasn't necessary for me at the time. Now I'm trying to build a credit history for myself and starting to feel a bit concerned...

I currently have two current accounts with different banks (have never, ever been into my overdraft), I have a help to buy ISA which I have consistently paid the maximum amount into for the past year and I regularly pay for everything from my main current account. I figured as I began to pay for petrol much more regularly than usual I should try to get a credit card to show I am can regularly pay back money (direct debit from current acc). I've found that most CC applications ask for you to be employed and earning a minimum of £3000.

Does anyone have any advice?!?!?! I'm really good with my money and just need a credit card to prove this for the future... there is no student option on credit card applications, just 'unemployed'. Is my only way to go with Aqua or Capital One? My situation is unique as I'm not a typical 18 year old student, I have worked and I am responsible with my money - and I've never been in debt! Surely one of the two banks can help me open a credit card upon their own discretion according to my circumstances? Particularly seeing as with one I have shown a consistent year of monthly direct debits from my current account to the ISA?

bigadaj

You don't say what your income is currently, do you have student loans or grants, are you living off savings, you presumably aren't working as you don't have any significant income to record.

You've stated the options you have, the banks you have a current account with and a record of handling money are your best options, if not then look at sub prime cards, aqua reward gives you cashback and favourable Exchange for overseas travel for example. If you are paying off in full monthly then the high interest rates won't affect you, and your credit files will improve and reflect the responsible use of credit. no one can see that these cards are sub prime, teh only indication might be low credit limits and that's what you would expect from a student account anyway.

EachPenny

StabiloBoss wrote: »

I've found that most CC applications ask for you to be employed and earning a minimum of £3000.
...
there is no student option on credit card applications, just 'unemployed'

As bigadaj says, start with the banks you currently use, preferably by making an in-branch appointment rather than applying online.

Are you sure the applications are asking for you "to be employed and earning a minimum of £3000" ? Many just ask for a regular monthly income. If your only income came from benefits this might be a problem, but savings and investments income, pensions etc are other sources of income the banks may consider.

I'd also take another look at the categories in the application process. You should never lie, but is there a category other than 'unemployed' which fits your circumstances? Arguably as a full-time student it would be a lie to claim you are 'unemployed' Speaking to an advisor in branch may help you to overcome this issue - if in doubt they would contact the credit card team and confirm what category you should be in.

Also, if your only objective is to build up some credit history, then why limit yourself to looking at credit cards? Perhaps you would find it easier to get a store card - so long as you are able to pay the money off and not incur interest or fees it may be as good as having a credit card. Stores are often keener to sign up new customers than credit card companies!

phillw

StabiloBoss wrote: »

I'm a mature student (25, single, living with parents) who decided to return to University full time recently

Does that mean that you have applied and accepted to go to university starting this year? What is your income at the moment? If you don't have one then can you apply for some work for the next few months?

If you need to be creative to answer the questions then at least be consistent when applying, or you could get rejected. Just don't lie.

You should be able to get some form of credit card here.

http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards