Best first credit card for 2nd year student

enthusiasticsaver

Nasqueron said:

enthusiasticsaver said:

Nasqueron said:

enthusiasticsaver said:

Nasqueron said:

enthusiasticsaver said:

I recommend you do not get a credit card in Uni unless you can be very disciplined about using it.  Building up a credit score is not something you need to think about now. 

Building up a credit score is of course not something you ever need to think about.

Building up a credit history is no bad thing - being on the property ladder 2-3 years earlier might save money, better car deals etc

Yes,  when they have a job and are earning.  We have seen way too many young people on DFW who are using credit cards before they have learnt how to budget and manage money and before long are thousands of pounds in debt.  My own two daughters worked part time through Uni and sixth form but did not apply for credit cards for several years after leaving Uni and getting established on careers.  They eventually got credit cards in their early 20s and had no issue getting mortgages or car finance. I would recommend learning to manage money first before applying for any credit.  

Sure and to add my own anecdote to the mix, I got a CC from my bank at 18 while a student, with 0.25% cashback which I have held ever since, it's earned me money, helped me learn finance (which my parent also taught me, saving and buying only what you can afford). Poor financial education is the fault of the parents, not simply from having a credit card, particularly a low limit one that a student could typically get - mine started at £350!

People learning to budget is a life skill, a CC is not suitable for everyone sure but it's not a bad thing to have

Financial education is one thing.  Financial discipline is something else.  You can have one without the other.  

Sure but someone can do that with say car finance, overdraft etc

The general point is that a CC is not a bad thing - you and I clearly agree that a CC is fine, just we disagree on when to take it out, which I have no problems with, I completely get your reasoning. My more general issue here is the idea any credit is bad and nobody should ever take it out except maybe a mortgage - and the more specific, false, claim that a CC is worthless as the benefits are poor etc. I got £67.18 last year from cashback on one card just from paying for stuff like shopping, petrol, car service etc etc - now given I was spending maybe £6000-£700 a year (I have the Lloyds one with is 0.25% to £4k then 0.5%), it's a decent enough freebie that I wouldn't have got with cash (though a Chase debit card might have got more albeit I can have the money in savings for a month more with a CC!). I think if I was using them, an Amex card for miles or the 5% initial bonus etc would not be terrible either

I totally agree that credit cards are not bad and used properly they can be of great benefit.  I use mine for the S75 protection and have used them for cashback points etc in the past when they were worth having and keeping money in savings that bit longer.  My issue is that people who have them should know how to budget and live within income first. I have debt counselled for years and sadly lots of youngsters do fall into a pit of spending without consequences when they first get access to credit and then regret it later.  It is a life skill which often only comes with experience of handling money. 

enthusiasticsaver

(Removed by Forum Team)

There is evidence to suggest that 29% to  50% of 18-24 year olds are struggling with high debt repayments.  Burying our heads in the sand about this for fear of being judgemental helps no one.  There is no question of me venting my views as you say.  I do not think that the OP will get a credit card application approved while they have no income so that is my answer to their original question.  Continuing to apply and getting declined will make it harder for them which was why I suggested they wait. 

WillPS

enthusiasticsaver said:

(Removed by Forum Team)

There is evidence to suggest that 29% to  50% of 18-24 year olds are struggling with high debt repayments.  Burying our heads in the sand about this for fear of being judgemental helps no one.  There is no question of me venting my views as you say.  I do not think that the OP will get a credit card application approved while they have no income so that is my answer to their original question.  Continuing to apply and getting declined will make it harder for them which was why I suggested they wait. 

First of all, you're making an assumption that they have no income. Many students work part time alongside studies.

Secondly, you absolutely can get a credit while you are a full time student with no income, and both TSB and HSBC offer a specialist product designed specifically for students. Neither require an income, but they both require you hold a matching student current account (I presume so they can see you are getting your student loan payments).

Thirdly, your contention that getting declined would be problematic for them longer term is bogus. The only impact would be a 'hard search' which would fall off their report by the time they graduate, exactly the same as if they had been accepted.

All this has been covered already upthread. I put it you that now you've been called out on this you're trying to make your "advice" look as though it's based upon fact when clearly it is not.

Finally, putting aside your lack of citation, there is evidence to suggest that there are large amounts of every demographic under 50 who are struggling with high debt repayments. That doesn't mean it's correct to form a judgement about anyone's ability to manage credit based on their (again presumed) age alone. It's textbook ageism and is completely unacceptable.

If the OP has the savvy to ask on a forum for advice on MSE about which products to go for, given the niche they understand themselves to be in,  they are already way ahead of the curve for all adults in terms of financial awareness. 

Nasqueron

inthezeroroom said:

Nasqueron said:

You are perfectly free to dislike credit but making demonstrably factually incorrect statements e.g. on the benefits of cashback / points does not help the OP to make a decision.

It is not being clear to falsely state that credit cards do not have benefits as part of your post in advising against credit - it would be clear to state you are advising against credit simply because you personally do not like credit.

Nobody necessarily needs credit if you live in a tent, have an old scrap banger car and live using cash (or effectively doing so) but many many people use it to their benefit and any debate on the subject should be driven by facts not opinion, particularly when the opinion can be shown to be wrong.

OK, so now the OP can see that with a cashback card they could earn a whole £2.50 for every £1,000 they spend. I don’t think it’s factually incorrect to state that that is rubbish.

It is clearly factually incorrect to state that is rubbish because it's free money I wouldn't have got without spending and it's money I got from simply spending normally. As I said, it's £5 per £1000 after a £4000 spend. This is by no means the best deal, you get 5% (capped at £100? maybe?) from Amex for 3 months. There are Avios/Nectar deals too for lots of airmiles or nectar points - the old Nectar Sainsbury's card you'd get 2 points per £1 on top of the £1 from the nectar card - 500 points was £2.50 to spend in store - so £2.50 for every £166.67 you spent in store - and that's without the double up offers they did. Last year I spent 10,000 points in their November promo for £100 worth of vouchers - before they nerfed the nectar mastercard rate, that was £3,333.33 spend in store (we spend upwards of £6000 a year anyway) for £100 of vouchers - hardly "rubbish" (obviously I am including the standard nectar points in here too but without the Nectar card it would be basically £10,0000 spend instead)

I also didn't mention, though it's worth adding to help OP, that the money for the card is stored in a Kroo account paying 4.35% - which is paid every month so even more money that I got for nothing purely for using a CC not a debit card 

Nasqueron

enthusiasticsaver said:

(Removed by Forum Team)

There is evidence to suggest that 29% to  50% of 18-24 year olds are struggling with high debt repayments.  Burying our heads in the sand about this for fear of being judgemental helps no one.  There is no question of me venting my views as you say.  I do not think that the OP will get a credit card application approved while they have no income so that is my answer to their original question.  Continuing to apply and getting declined will make it harder for them which was why I suggested they wait. 

The question though is, is it CC debt or say desirable, but unnecessary spending like expensive phones or clothes on the likes of Klarna? Financial education is important firstly from parents - I was always brought up to spend what I had only, I didn't have a credit card until a student and that was the £350 limit with 0.25% cashback I mentioned and my first ever loan was when I was 33 and got a car on PCP! Secondly though from schools to help educate kids on the cost of trying to keep up with the lifestyle they want