Young adults not allowed credit cards or to buy foreign currency

CAG8
CAG8 Posts: 12
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Daughter (19) is organising fairly long trip abroad but isn't allowed a credit card and now we find she can't even buy cash because she doesn't pass the security check of The Currency Club.  
When I used to travel at that age, I had a Barclaycard and was able to organise the whole thing without any problems or hitches at all.  
Why is it all so impossible for them now?
Any alternatives they are left with are the most expensive ones.
I don't understand how they can build a credit history without being given any credit? 
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  • Brie
    Brie Posts: 9,345
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    It's because overall as a group younger people struggle to deal with credit and end up owing all over the place.  

    Can she get a phone contract or similar to get something on her credit record?  Get on the electoral roll even if it's at your house?

    Can you get a card and make her an associate user?  That way you can help keep track of her as well which might be reassuring all round.
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • eskbanker
    eskbanker Posts: 29,940
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    edited 6 February at 6:15PM
    19 year olds are allowed credit cards, or do you just mean that she's had some applications rejected?

    As with anyone else without much of a credit history, she needs to start on the bottom rung of the ladder, in terms of subprime options, or maybe her current account provider may offer something?

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

    Has she checked her credit files to validate that everything is as expected there?

    https://www.moneysavingexpert.com/loans/check-free-credit-report/
  • cymruchris
    cymruchris Posts: 4,919
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    CAG8 said:
    Daughter (19) is organising fairly long trip abroad but isn't allowed a credit card and now we find she can't even buy cash because she doesn't pass the security check of The Currency Club.  
    When I used to travel at that age, I had a Barclaycard and was able to organise the whole thing without any problems or hitches at all.  
    Why is it all so impossible for them now?
    Any alternatives they are left with are the most expensive ones.
    I don't understand how they can build a credit history without being given any credit? 

    Things are different these days. The majority of adults can get on the 'building a credit history' ladder with a dew simple steps. Nobody is 'not allowed' a credit card - you just have to prove that you are trustable enough to be given one.

    What kind of credit history does your daughter have?

    Does she have existing current accounts in her own name?

    Is she on the electoral roll?

    Does she have her mobile contract (even if sim-only) in her own name?

    If yes to the last three questions, and it's been that way for at least 6 months, then if she's able to satisfy income requirements, she should qualify for 'credit builder' cards - such as Aqua, Capital One and Vanquis. (Has she tried the eligibility checkers for these providers directly on their websites?)

    Usually for any financial product these days a hard or soft search is carried out - if the lender can't verify the applicant, it's usually 'computer says no'.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • eDicky
    eDicky Posts: 6,527
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    Why would having a credit card or the purchase of cash from The Currency Club, whoever they might be, be indispensable for your daughter's trip abroad? Debit cards for overseas fee-free use are easily available, and can be used to take local currency, if needed, from an ATM; or cash GBP can be exchanged in-country where ATMs charge heavily for foreign cards, such as Thailand.
    Evolution, not revolution
  • DullGreyGuy
    DullGreyGuy Posts: 9,184
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    CAG8 said:
    Daughter (19) is organising fairly long trip abroad but isn't allowed a credit card and now we find she can't even buy cash because she doesn't pass the security check of The Currency Club.  
    When I used to travel at that age, I had a Barclaycard and was able to organise the whole thing without any problems or hitches at all.  
    Why is it all so impossible for them now?
    Any alternatives they are left with are the most expensive ones.
    I don't understand how they can build a credit history without being given any credit? 
    So you've told her she "isn't allowed" or do you mean she has applied and been declined?

    Assuming you haven't banned her then she is "allowed" a card but may not be able to get one. Back in the day banks would give young people silly card limits etc relative to their earnings on the idea you build brand loyalty and sure you may make some losses in the short term but the long term there will be bigger profits. Banks are under more regulation now to be a responsible lender and not think that losses now are worth it for future profits. 

    Like others, never heard of the "currency club". This site runs an FX comparison tool, depending on where you are in the country it's possible to turn up with cash and exchange it no matter your age. Only if it's a very large amount will they do ID checks etc.

    These days though most only change a small amount for the airport etc and then have a fee free debit card like Starling so they can then withdraw cash in ATMs and get a better exchange rate. 

    There are credit building cards for those with poor or no history. You can also get other forms of credit like a mobile contract which has a lower hurdle to pass and starts building a history. Similarly check the other basics are covered like being on the electoral register. 
  • Kat78MFW
    Kat78MFW Posts: 259
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    Martin Lewis recommends the Chase debit card for spending abroad (and getting cashback on purchases). She should be able to get a current account with Chase I should think. 
    MFW since March 2019Mortgage-free 30th June 2023 My diary https://forums.moneysavingexpert.com/discussion/5974849/six-years-and-counting#latest
  • Neil49
    Neil49 Posts: 3,030
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    Get a debit card from Starling, Chase or Monzo as they all offer commission free transactions in a foreign currency. Get the card loaded up on Apple or Google Pay so they can use their phones to pay as well as the physical card. 

    If she runs low on funds you can simply transfer money to her account in seconds. 

    Personally I wouldn't rely on just one card but if she is in a group her friends could possibly help out if she lost her card. 
  • NoodleDoodleMan
    NoodleDoodleMan Posts: 3,262
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    No obstacles to buying cash in the UK if so desired - she can simply pay in readies at any Travel Agent or similar currency outlet.
    Or Mum can pay with her debit card for such a transaction.
    As above a "user friendly" debit card such as Chase or Starling would be the way forward, both preferably.
    As a matter of interest, where is the young lady in question travelling to - might help gain some relevant advice from the resident consultants hereabouts.
  • Westin
    Westin Posts: 5,889
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    Such a misleading and incorrect thread title.

    Have you thought of a career as a Daily Mail ‘journalist’?
  • CAG8
    CAG8 Posts: 12
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    Thanks for the replies (except the Daily Fail one - 'journalists' don't work for legacy media do they?)
    Title is not misleading or incorrect in our experience - neither of my daughters has successfully applied for a credit card.
    Debit cards aren't as useful as credit cards in my opinion - they don't give as much protection for some purchases for instance, but the daughter who is travelling (for 2 months and not with friends) was able to successfully apply for a Chase debit card so that will work at least.  Would be too much cash for a girl to carry around to cover the whole trip.
    I haven't banned her - we tried to get her a credit card and she was declined.  She doesn't need monitoring/supervising - she is very sensible.
    She isn't a student yet, but will be in Autumn.  She has been earning since leaving school, but only small amounts and that has ended now so she can't say she's going to be receiving an income any time soon.
    She has applied to be on the electoral roll but I don't know whether that process is completed yet.
    She doesn't have a phone or any other bills in her name at the moment.   That's something we can look at - so thanks for that suggestion.
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