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Credit Card for 18 year old

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Hi everyone,

My oldest daughter recently turned 18 and I thought it would be a good idea to get her to apply for a credit card in order to build up her credit rating.


She has a full time job and is very good with money so I have no concerns that she would misuse it, however I wondered if there was any favourable companies to apply to?

Comments

  • She would get one to build up a credit history - not a made up score/rating.

    She should also apply in her own time when she feels ready for one not when pushed into it.
  • virgo17
    virgo17 Posts: 977 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    If she has a bank account, I would suggest she applies for a card from them. Her bank may be the only ones who can see her credit worthiness at the present time.
  • Hi,

    As stated above, it would probably be best if she applied to her own bank and branch, as they will already know your daughter and have evidence of how she manages her account(s).
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • System
    System Posts: 178,344 Community Admin
    10,000 Posts Photogenic Name Dropper
    Hi,

    I agree that it is a good idea for her to get one, but I'd apply with the bank that she is already with as stated above just because they know her spending habits. I'd also just urge her get one with £250-500 credit limits just to be safe :D
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    1,000 Posts Combo Breaker Newshound!
    I agree with the suggestions that she should apply to the bank which receives her p[ay into an account.
    I don't agree with the suggestion that she should specifically request a low credit limit or reduce the limit should a higher one be offered.
  • Why does she need to build up her credit score if she has just turned 18? Is she planning on applying for a mortgage soon? Having seen many young adults get into trouble with easy accessible credit I think it is better to encourage them to save and budget in their early working years.

    Best bet is her bank where they see her salary go in and a well managed current account.
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  • I'd suggest the opposite. Teach her to budget and save and have an emergency fund for unexpected issues and to avoid credit.
    Even the most sensible person can call foul of credit cards. As long as it's in your wallet the temptation is there. Even if disciplined there is the chance of missing a payment or accidentally going over limit.
    Setting out to improve credit scores can backfire. Building wealth from regular savings and avoiding debt seems a better lesson.
  • Setting out to improve credit scores can backfire.

    This actually applies to everyone :)
  • Chrysalis
    Chrysalis Posts: 4,703 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Its a tough one.

    To have a very good credit history, ready for when you actually need credit is definitely useful. So I can understand where OP is coming from.

    But I can say from my own past life experience my first credit card didnt turn out well. I got it I think when I was around 19-20 years old. It was fine up until I got kicked out my parent as since I had essentially no living costs I could basically divert my entire wage slip to paying off the card.

    Basically in late 1990s I was given a card with a £1500 limit by my bank, so consider my age, and value of money then I think a £1500 limit is pretty high for someone of that age. I had put large spends on the card 3 times, all of which were paid off quickly, as I said I had basically no living costs whilst doing a full time job. Then I put £1200 on the card to pay up front for a driving lessons package, not long after that I walked out of my job (I regret doing this later on, but I was young), I didnt know my parents were planning on moving and kicking me out. Although I managed to find employment again it wasnt steady employment for a while (was moving between temp jobs to survive basically), this combined with having to move out and deal with not having my parents subsidise my living meant the card was zero priority for me, long story short it eventually ended up in lloyds tsb collections department and was there for several years until eventually paid off. I actually had that collections account up until about 3 months before I got my first 0% card, I decided to pay off all my credit by combination of cash payments and moving to 0% cards, and the lloyds card was paid off fully with cash. So obviously I reached a point where I started able to manage money better and how to handle credit.

    Also to make things even worse, at some point the card was paid off after I went in to see a financial advisor in the local lloyds branch, he approved a loan equal to the value of the card to my account, and watched me as I was at the counter using it to pay off the card. I was never advised to cancel the card, or even contemplated it, the card was eventually maxed out again with also the loan as a liability, these were my dark years of my credit history. From when I was much younger.

    With all that said tho, I know people my age who are terrible with money, and definitely bad with credit, so age is not the be all and end all of it.
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