Can anyone advise me on Credit Cards?

[Nitrojan]

Today at work, the subject of Credit Cards came up during our general office banter (and especially with Xmas well under way ) and I was advised by a number of my colleagues that I should begin looking into obtaining a credit card and actually using it in order to be able to obtain a credit rating for the long term (such as house purchases/mortgages etc). I have always been told as a child and during my early teenage years "Don't ever get a credit card.. don't get involved with them.. you'll only get yourself into debt" etc. However it has struck me that maybe it is a sensible idea, to get one and use it as long as I know I have the money to pay it off and I am sensible.. Maybe it will come in useful.

So here is my question. I am 18 years of age and I have a full time job earning around £12.5k a year trainee wage whilst still at university (not amazing, I know.. but definitely a good start!). I know nothing about credit cards at the moment and so I don't want to just jump the gun and bind myself to one company without doing my research first. So here is where I hope you guys can help me. What do I need to look for when selecting a suitable credit card, and what would be the best credit card for me to get? I really have no idea.

 

[Russinating]

You should definitely get one. You won't get into debt and trouble unless you, well... get into debt and trouble. I use mine like a debit card and pay it off in full every month. The benefits as well as the credit rating? Extra security, peace of mind, helps with cashflow, and of course airmiles .

The easiest thing to do would be to get one with your bank (ie attach that to your current account) and set it up so it pays itself off in full every month. Use it for everything you can. Then after about 6 months or so apply for one that actually gives you something back.

 

[Brian8bit]

All I can say about credit cards is I never charge onto them what I can't pay back at the end of the month. I do my banking online, so when I do make a credit card purchase, as soon as the option to pay it off comes up online, I do.

 

[smr]

Don't get one, is my best advice.

I did when I was about your age - young. Regretted it. Got into debt, cut it up, paid the debt off. Never got one since.

I run a successful PC Repairs business now at the age of 26 and have never needed one since. Spawn of Satan.

 

[Russinating]

Don't get one, is my best advice.

I did when I was about your age - young. Regretted it. Got into debt, cut it up, paid the debt off. Never got one since.

I run a successful PC Repairs business now at the age of 26 and have never needed one since. Spawn of Satan.

If you're bad at managing your money then you can't blame your credit card. And don't say "I'm not because I runs a successful bizniz!!!" because if you got into debt then you obviously are/were.

 

[Yamahahahahaha]

If you're 100% sure you can pay off your balance every month then get one.

If you're not 100%, try it for 3 months.

You must pay it off every month, without fail. Most cards allow 60 days but don't risk it.

Try www.moneysupermarket.com for a comparison of different credit cards, ones with cashback are nice if there are no monthly fees.

 

[Clipsey]

Get one - as long as you pay it off every month you'll be fine
Plus the points you get back can be great. We use ours for every single thing we purchase and bills etc, pay it off each month. Now just got back $500 for about 9months worth of spending

 

[smr]

If you're bad at managing your money then you can't blame your credit card. And don't say "I'm not because I runs a successful bizniz!!!" because if you got into debt then you obviously are/were.

I was bad with my money then, as I was still a kid. Now I'm a man. I've never needed one for anything - never needed a loan since, never needed a credit card for anything. Debit Cards and actually having the money in your bank in the first place before buying anything ***.

 

[Nitrojan]

I was looking at a Virgin credit card as this was the top one on MoneySupermarket. Is this a good idea?

 

[[TW]Fox]

Don't get one, is my best advice.

I did when I was about your age - young. Regretted it. Got into debt, cut it up, paid the debt off. Never got one since.

This is only good advice if you have the self control of a squashed fruit. For anyone with half a brain, getting a credit card is absolutely a good idea.

For the OP's purposes, my advice is as follows.

Pick a card with an offer that suits you. Go for something which gives you an extended guarantee or damage protection on electrical purchases, or something with favourable foreign exchange rates if you travel, or perhaps a cashback card. Ignore cards with 0% deals as you dont need this at your stage.

Once you get the card, ring up and activate it and set up a direct debit for the FULL amount each month.

Then, only spend on the card what you can afford to pay for. Let the card automatically clear itself via direct debit every month.

You will:

a) Benefit from the increased security and protection a credit card offers
b) Benefit from the offers on that particular card
c) Never pay a penny of interest
d) Never acrue any debt
e) BUILD UP A CREDIT RATING because you will be demonstrating you can pay the balance each month.

Please, please, please ignore those people who are so dim they think a credit card means they can rush off and max it out. Don't consider it free money, because it isnt, and you'll be fine.

Debit Cards and actually having the money in your bank in the first place before buying anything ***.

Please stop attempting to dispense advice on subjects its quite clear you know precious little about. The only problem in your situation was you.

I was looking at a Virgin credit card as this was the top one on MoneySupermarket. Is this a good idea?

Moneysupermarket will appraise credit cards based on things like interest rate, or the availability of balance transfers of 0% purchase deals. As you are going to clear the card, in full, every month, the interest rate makes NO difference to you. You could get a card with a 1000000000000% APR rate and you'll never pay interest.

 

[smr]

This is only good advice if you have the self control of a squashed fruit. For anyone with half a brain, getting a credit card is absolutely a good idea.

For the OP's purposes, my advice is as follows.

Pick a card with an offer that suits you. Go for something which gives you an extended guarantee or damage protection on electrical purchases, or something with favourable foreign exchange rates if you travel, or perhaps a cashback card. Ignore cards with 0% deals as you dont need this at your stage.

Once you get the card, ring up and activate it and set up a direct debit for the FULL amount each month.

Then, only spend on the card what you can afford to pay for. Let the card automatically clear itself via direct debit every month.

You will:

a) Benefit from the increased security and protection a credit card offers
b) Benefit from the offers on that particular card
c) Never pay a penny of interest
d) Never acrue any debt
e) BUILD UP A CREDIT RATING because you will be demonstrating you can pay the balance each month.

Please, please, please ignore those people who are so dim they think a credit card means they can rush off and max it out. Don't consider it free money, because it isnt, and you'll be fine.



Please stop attempting to dispense advice on subjects its quite clear you know precious little about. The only problem in your situation was you.



Moneysupermarket will appraise credit cards based on things like interest rate, or the availability of balance transfers of 0% purchase deals. As you are going to clear the card, in full, every month, the interest rate makes NO difference to you. You could get a card with a 1000000000000% APR rate and you'll never pay interest.

The problem is you're a bit older than 18, so have probably forgotten what it's like to be at that age, and the temptation and lure of a credit card can sometimes be too much to take.

For me, that was quite a long time ago, I was single then and moved around quite a bit after coming out of University.

Now, I'm settled, live in house which I pay a mortgage on with my partner, her two kids and we have a baby on the way. If I had a credit card now I would be sensible with it, as I've matured and grown up considerably - 18 is a young age.

Suffice it to say, many would agree that they become better "handlers" of their money/financial situation when they get into their twenties and have accrued a more level headed view on the world.

Just my two cents, I think at that age the temptation is too much, it was with me anyway. If you can handle it, go ahead and do it though. Each to their own and all that

 

[mjt]

I wouldn't get one in your position as you don't really need one.

 

[[TW]Fox]

The problem is you're a bit older than 18, so have probably forgotten what it's like to be at that age, and the temptation and lure of a credit card can sometimes be too much to take.

I had a credit card at 18.

Just my two cents, I think at that age the temptation is too much, it was with me anyway. If you can handle it, go ahead and do it though. Each to their own and all that

Thats your own problem though, not a credit card. Most people are quite able to overcome the complicated thought process of 'I should not buy things I do not have enough money for'.

 

[smr]

I wouldn't get one in your position as you don't really need one.

 

[[TW]Fox]

I wouldn't get one in your position as you don't really need one.

It is never too early to begin building a credit rating. There is nothing wrong with credit cards used in the way I have described - it brings only benefits.

Look at all the people moaning in the mobile phone forums that they can't get a T-Mobile phone contract in their 20's! Because they have no credit rating..

You'll get a particularly small limit anyway - I think the limit on my first card was £500.

 

[smr]

I had a credit card at 18.



Thats your own problem though, not a credit card. Most people are quite able to overcome the complicated thought process of 'I should not buy things I do not have enough money for'.

It's not my own problem at all - I'm sure if you took the time to google it you'd quite easily see how credit cards have wrecked thousand's of peoples' lives. It is easily done, as for my situation I only got into debt of about 1k but that was enough for me to stay clear of them.

At the end of the day - if Credit Cards are a product that banks and financial companies alike sell to consumers. If everyone used them the way you do, (most sensibly), then do you think they would exist?

No, is the answer to that. The idea, for the banks, is that they make money from their customers by the hope that that little plastic card will drive them into debt, make them miss payments and give the banks a tidy return.

Young people are their favourite target for such matters.

 

[[TW]Fox]

It's not my own problem at all - I'm sure if you took the time to google it you'd quite easily see how credit cards have wrecked thousand's of peoples' lives.

Wreckless spending and an inability to rationally decide whether something should or should not be purchased wrecks thousands of peoples lives, not credit cards.

A credit card did not wreck your life. Your idea that you should spend £1000 of money you didnt actually have 'wrecked' your life.

At the end of the day - if Credit Cards are a product that banks and financial companies alike sell to consumers. If everyone used them the way you do, (most sensibly), then do you think they would exist?

Irrelevent provided you grasp the ridiculously simple concept of:

'I will not buy things I do not have the money for'.

 

[PapaLazaru]

If you are SURE you will pay it off each month, just get the one that looks the coolest.

 

[Russinating]

And lest not forget a credit card IS a loan, and to that end they're also good to have in an emergency. Sure you shouldn't run out and buy a flatscreen TV, but what if you need car repairs at the end of the month? What if you're abroad and you need to pay for medical bills or emergency flights? I know you're only 18 but there's still plenty of things like that that can happen that make credit cards worth their weight in gold, even if you do have to pay a little bit of interest.

 

[[TW]Fox]

And lest not forget a credit card IS a loan, and to that end they're also good to have in an emergency. Sure you shouldn't run out and buy a flatscreen TV, but what if you need car repairs at the end of the month? What if you're abroad and you need to pay for medical bills or emergency flights? I know you're only 18 but there's still plenty of things like that that can happen and that make credit cards worth their weight in gold, even if you do have to pay a little bit of interest.

This is where the slippery slope begins.

'Oh I dont bother to save £x a month incase my car explodes, I'll just whack it on the credit card and splurge the cash I would have saved on random junk'

Simply follow the advice I gave, and you'll be fine. Deviate from the advice, and thats when you might come unstuck.