Turning 18 tomorrow.. Going to apply for a Vanquis! And advice needed

[Deleted User] · 13 July 2018 at 7:05AM

Again do some eligibility checks.

If you shop on Amazon a lot go for the Amazon card that’s provided by New Day.

Nasqueron · 13 July 2018 at 9:15AM

T-G-C wrote: »

You are not correct in arguing that starting with subprime is not a sensible move. I can agree with you that performing a harmless soft check with mainstream providers is not a bad move in case of a rare positive result, however actually applying for a mainstream and putting unnecessary hard searches on an already blank credit file is not good practice.

The OP's purpose means that mainstream and subprime are irrelevant, he wants to build his credit file and clear in full each month, nothing more or less. I know that mainstream cards can offer rewards and incentives, however this is not something he is concerned about right now, he has the far future to consider switching to such offers when they are presented to him.

Other lenders cannot see the name of the lender, only the credit limit and account records, therefore having a Vanquis account doesn't effect him negatively. Even if approved for a mainstream card, his limit would most likely be hitting subprime level regardless, as no prime lender is going to offer an 18 year old, with no past history of credit, more than £500 to start off with. However, like I said, the chances of being accepted for a mainstream card without any credit history is next to none. I was in his position last year and know this for a fact. Income does have an influence, but the lack of a file still overrides most criteria of acceptance. The biggest exception, as mentioned around here, is a bank that you are a customer of, however I still wouldn't apply unless provisionally approved.

The OP does have a range of subprime lenders to choose from, however Vanquis is the easiest to obtain with a lack of history. Aqua and Capital One are more likely to decline an application in this situation than the latter.

The OP needs to start off with Vanquis. They can soft check with mainstream lenders first, however when they return a decline, which they most certainly will, he needs to go ahead with the safest option and then build a file to use in the future with more attractive offers. You can't head straight into the mainstream market at 18, it has to be earned over time with good credit management.

I started with £350 limit on my CC at 18, was up to £8850 18 years later with gradual increases. Starting with his bank who can see his track record (hopefully saving, avoiding running out of money etc) is hardly a bad idea (especially as he'll get better interest rates just in case of issues at university etc), worst case they say no and he either applies for a sub-prime card immediately or in 3 months

whitz666 · 13 July 2018 at 9:17AM

chelseablue wrote: »

Firstly, Happy Birthday for tomorrow!

Its nice to see a sensible young person when it comes to finance, I used to be one too (still am sensible, just no longer young!) and got my first credit card when I was 18.
It was with Capital One

From what I remember I just used to buy my petrol on it and paid it off in full when I got the statement.

If I could give advice to my 18 year old self it would be open an Stocks & Shares ISA.
I do have one now but didn't start until I was about 30

What happens when you open a S&S Isa? And why so at a young age?

MallyGirl · 13 July 2018 at 9:42AM

S&S - in the long term - grow more than you would achieve with savings accounts but you need to be in it for 10 plus years. Then that early growth itself grows and by the time you start wondering if you can retire early the S&S ISA is nicely stuffed with shares/funds that you can sell and withdraw the proceeds tax free.

binaryuniverse · 13 July 2018 at 10:40AM

My first credit card was with my bank. Had a dig through my records (yes, I still have some

) and it looks like I got a £3000 limit. Naturally, this was before the Credit Crunch, where credit was being handed out like candy.

It does sound as if you have your head screwed on but I still advise maintaining being cautious with your approach, and keep that discipline up. Having access to 'free money' can become a big temptation, if you're not used to it, and the times of 'Oh, I'll just stick the takeaway/concert tickets/beers on the credit card, just this once' can quickly mount up. A lot of us, on this board, have been there and worn the t-shirt.

Keep track of your debts. Keep track of your savings. Always ensure you have more in savings than you owe on the card. Always been in a position where you can pay that card off today, if necessary.

macman · 13 July 2018 at 10:57AM

At 18 you can open a LISA and save up to £4k pa-for which the Treasury will give you a 25% tax-free bonus (£1k). If you are looking to buy a house in 7 years or so, that's the obvious investment. Nothing else will give you a 25% return each year, unless you go into stocks and share, which means you risk your entire capital in order to get returns above what cash ISA's or savings accounts can provide.

binaryuniverse · 13 July 2018 at 11:25AM

macman wrote: »

Nothing else will give you a 25% return each year, unless you go into stocks and share,

Stocks and Shares LISA is the way forward, for long term saving.

whitz666 · 13 July 2018 at 2:15PM

So basically, I tried to sign up to the MSE Credit Club, unfortunately I could not complete the process because they use Experian for verification and I couldn't be verified. So, what I did was, I signed up for an Experian account on their official website and they still were not able to verify me, but I was able to request a "Statutory" Credit Report from them using a different service.. I just want to use the live service!

I also applied for a Vanquis Card using my friend's referral code. After completing the online application, I was told that they do not have much information of me, so they will call me within 10-15 days. I phoned Vanquis as well and they told me they have everything they need, they will call me within 10-15 days for a decision. Prior to doing this, I used the MSE Eligibility Calculator for Bad Credit Cards and Vanquis was at the top with a 95% acceptance rate.

MallyGirl · 13 July 2018 at 2:19PM

The Experian data is only fully rebuilt once a month so, although you are now 18, you weren't 18 at the time it was refreshed. In a month's time it should be able to find you.

whitz666 · 13 July 2018 at 2:22PM

MallyGirl wrote: »

The Experian data is only fully rebuilt once a month so, although you are now 18, you weren't 18 at the time it was refreshed. In a month's time it should be able to find you.

Ah, I understand now! Makes perfect sense.

Turning 18 tomorrow.. Going to apply for a Vanquis! And advice needed

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