Credit card for 18yr old?

chrislee765

Hello,
Soon i will be turning 18. I'm quite a controlled spended so feel that i wont abuse a credit card (3 weeks into my wages i still got money left).
I want a credit card for 2 reasons:
1. My credit rating, i know people who have trouble getting a loan because they dont have any credit rating.
2. Freebies, i dont want a one off pressie but something like an extra years waranty on white goods, air miles. Something that will always be usefull, not just at first.

I would be gratefull if anyone could post any credit cards. Obviously i want 0%apr for 6months, i hope to spend on the card and then instantly pay it off.

Kind Regards
Chris Lee

Fatboy_NSS

I think you're asking a bit much to get a 0% deal or other bonuses straight away with no credit history and not much employment history. You're probably best off applying for Capital One or MBNA as they have a range of credit cards for people in different situations. You'll probably get offered a really high APR and a low limit, but accept that (just make sure you can afford to pay the full bill each month). Slowly but surely the limit will go up and you'll be able to trade in the card you've got for the cards with more perks.

Lopo

Assuming you have a bank account, it would be sensible to apply for one of your banks credit card products initially before you go to other lenders who will have no prior knowledge of who you are and will be unlikely to offer a 0% card initially - although not impossible. Your bank is less likely to say no having seen how you run your accounts in good stead as you indicated in your post...and obviously will have prior knowledge of you.

Some banks will not do a credit check if you have a long history with them (3 years+) and it will get the credit ball rolling for you - meaning that you are a credit worthy individual with one of their credit cards.
Then, give it some time for a few months (at least 4-5), use the card routinely, pay it off regularly and then go looking for the other type of cards/products you desire with the appropriate features (warranty/freebies/etc).....and apply !

Other lenders will see via your credit file using credit reference agencies for what your credit usage is like - making purchases, routinely paying off the purchase debt, not missing payments, etc... and then using this as a reference guide judge you on ability to repay for one of their products/new card/loan and provide appropriate limits etc...

There are a few conditions that may affect the above process, cant go into it all as there is a lot of detail and conditions to cover, employment, period of living at your current address, etc.....but the above is a sensible start for your situation.

If I were in your approaching 18year old shoes I would not apply for a 0% card initially from a lender who has no previous knowledge of you as this "could" be viewed as not-ideal. Picture it,....to them you would appear as a first time credit card user wanting a 0% card for purchases/debts - highly implying your not going to make more than the minimum repayments for the first few months,...maybe not or after either(!) so it is would be high risk situation for them as your only likely to be building up debt - not a good start.

Additionally, if you were to receive a rejection for your first application, that really would not bode well on your credit file and make further following credit applications difficult. This would happen becuase searches of your credit file are recorded onto the credit file itself. Lenders are able to see see which other lenders have viewed your credit file in the last 12 months. In the above example, you may well end up with a credit application, that gets declined, leaving a record of the credit search of the lender on your credit file, and no products by that lender detailed on your file - which is an obvious indicator you received a rejection to another lender who then does a search on your file following another application you may make.

In short, new lenders like to see active usage of products when they check your file, and think "...lets have a piece of that!" and then offer you their products. The trick is to start off well without leaving bad stains or a dirty trail and the new lenders then chase you down with their products hoping you'll spend and get into debt with them instead!!!

Hope the above helps as a pointer, but dont get into serious debt!! ! Its upto you to decide what is the best for your situation and the above are merely my humble personal opinions and experiences. The final choices for what to do are always going to be your so do your research first and fully understand what your looking to do and achieve!

[glow=purple,2,400]Lopo... ![/glow][glow=red,2,400]Lopo... ![/glow][glow=orange,2,400]Lopo... ![/glow]

student100

....If I were in your approaching 18year old shoes...

...I would hold my nose and get to a shoe shop as soon as possible... ::)


Last year I was an 18 year old student. I got a Student account from Halifax and also one of their 0% credit cards (although only with a £350 credit limit). After I'd had this about 8 months I applied for an Accucard because I wanted cashback rather than a 0% deal I wasn't using. I got a card with a £500 limit from them.
I don't know if I'd have got a card from Accucard had I applied to start with rather than after I'd had 8 months good history on the Halifax card.

If you're planning to spend on the card then immediately pay it off you're not going to care about a 0% deal, much better to try for a cashback card. Your bank is probably the best place to try for your first card - they won't do the best deal but they will help you build up a bit of history as a senisble spender then you can apply for a better card in a year or so.

ohit

Dunno what people mean about not able to get 0% offers etc...

I turned 18 months ago and applied for Natwest Visa, Natwest Mastercard, Mint, Abbey MBNA, Egg, Capital One and a store card.

All got accepted apart from the stored card and Abbey one.

For me, it "just worked" and I haven't closed any yet either so hopefully that'll make future applications better with their limits.

chrislee765: best idea for you is to get one through your current account provider.

ohit

Oh, and I forgot to say that the Natwest, Mint and Egg ones all had 0% periods. Lovely 7k stooze ;D

Lopo

Like I said though regarding the 0%....not impossible to get.  Depends on the individuals background... and ultimately, is it wise?

As for ohit, it does make sense that you managed to get the cards from Mint, MBNA, Egg, Capital One.  You may have a suitable background for them but they are probably some of the easiest to get and some would say are so easy that they entice people to the easy money and resultant debt.  Not saying this is you as you have clearly indicated otherwise but straight out of 17 and hitting the 18 mark, I'd bet some are likely to go mad spending, get stung and be introduced to the wonderful world of debt...

I'd say its irresponsible of the cc lenders allowing it to happen personally...

For a sensible 18year old astute with how credit works or prepared to wise up on, its probably best to begin by building up decent unflawed credit history, while gaining from cashback/points -- perks of added insurance -- freebies etc... as the original poster quite rightly seems to have thought about.

Just my stoozed 2 pence worth!

Lopo...!

paulsingleton

18 what you need a credit card for? go to uni, work hard, get a student loan, get a job, then get a credit card.

Martinslovechild

18 what you need a credit card for? go to uni, work hard, get a student loan, get a job, then get a credit card.

Probably the same reason that 12 & 13 year olds need mobile phones.

ohit

paulsingleton:

1) The convenience when paying for things, especially for the few weeks of the purchase being interest free.

2) Consumer protection for goods/services purchased over £100.

3) Improve credit rating for later in life.

4) Look cool with the girls at uni.

5) Stooze to generate a further monthly income to use at uni.

6) 'cos at 18 you can

;D

kinster_2

18 what you need a credit card for? go to uni, work hard, get a student loan, get a job, then get a credit card.

the uncreative mind... only mentions getting a job and working hard and not smart...