Students Credit Card

[vwdan]

Maybe I'm just as equally inept as NLUK but my first credit card was a mere £650 which I promptly spent and spent years repaying at pathetically small amounts (For context, my first job was £800pcm!)

I think what's not clear is whether the student will have access to the card or not - I would argue if they do, then it's pretty likely to end in tears in the end. The credit limit wont' be *that* low. If the idea is to leave the card at home or something, then I can see the logic I suppose

[northernladuk]

Maybe I'm just as equally inept as NLUK but my first credit card was a mere £650 which I promptly spent and spent years repaying at pathetically small amounts (For context, my first job was £800pcm!)

I'm not inept. I dunno why I came in to this. I bought my first flat using deposit purely from credit cards back in the days of multiple cards with 40k credit and 0% balance carpet bagging. Never missed a payment in my life.

[SueEllen]

Maybe I'm just as equally inept as NLUK but my first credit card was a mere £650 which I promptly spent and spent years repaying at pathetically small amounts (For context, my first job was £800pcm!)

I think what's not clear is whether the student will have access to the card or not - I would argue if they do, then it's pretty likely to end in tears in the end. The credit limit wont' be *that* low. If the idea is to leave the card at home or something, then I can see the logic I suppose

You presume all young people are crap with money.

My limit was something like £400

I got it because I heard about section 75.

I quickly learnt how interest built up so learnt to not use it accept in dire emergencies.

When I wanted to buy a computer on it I had to put money in the card's account to make the transaction as my limit wasn't high enough.

[northernladuk]

You presume all young people are crap with money.

.

True dat but it's a better assumption than that they are good with their money to be fair. Both are assumptions and you know what they make but there is very strong evidence that they are a lot worse with money than later generations.

Always exceptions and arguments to every sweeping statement but saying the young struggle with debt and are high risk of non payment and the like holds a lot of water.

You obviously did very well but when their are statistics like the below then you were in the top set

But the charity's survey of more than 4,000 18- to 30-year-olds suggests almost a quarter are in debt all the time and almost half have to borrow to make their cash last to the end of the month.

It indicates young women are worst affected, with:

• 23% of young men constantly in debt, compared with 25% of young women
• 45% of young men running out of cash each month, compared with 51% of young women

[BigDataPro]

Update:

Thank you for every one who have taken time to provide all constructive comments and opinions.

The idea of getting a CC is to prove that they are good with finances (albeit we pay for them). Reason to prove is to build a history, a credit history. If any one has never taken a loan and/or CC, it doesn't mean their credit history is going to be outstanding, rather it will be poor because they don't have history.

vetran provided a very good link from Experian that explains it all.

Applied to TSB for an account, got it created. Looks like, we will have to wait for 3 months for a CC. That's fine.

Only action pending is to ensure that all payments/transactions are going through TSB, so that there are transactions and they would provide her with a CC.

Additional benefit of having such an account is that these days kids are so reliant on Apps for every financial transaction. I don't use any App for my financial transaction. I don't trust Apps especially for financial transactions. Besides I am the one who is going put money into her account, that gives me confidence that liabilities can always be limited.

By the way, the max limit on student's CC is £500, which is very good.

[jayn200]

Update:

Thank you for every one who have taken time to provide all constructive comments and opinions.

The idea of getting a CC is to prove that they are good with finances (albeit we pay for them). Reason to prove is to build a history, a credit history. If any one has never taken a loan and/or CC, it doesn't mean their credit history is going to be outstanding, rather it will be poor because they don't have history.

vetran provided a very good link from Experian that explains it all.

Applied to TSB for an account, got it created. Looks like, we will have to wait for 3 months for a CC. That's fine.

Only action pending is to ensure that all payments/transactions are going through TSB, so that there are transactions and they would provide her with a CC.

Additional benefit of having such an account is that these days kids are so reliant on Apps for every financial transaction. I don't use any App for my financial transaction. I don't trust Apps especially for financial transactions. Besides I am the one who is going put money into her account, that gives me confidence that liabilities can always be limited.

By the way, the max limit on student's CC is £500, which is very good.

As long as you don't increase it it's fine. You'd be surprised how quick credit gets built even with just 1 card, just that credit card alone with that small balance for 1 year + registration on electoral roll will probably be enough to secure fairly competitive credit if needed.

[vetran]

As long as you don't increase it it's fine. You'd be surprised how quick credit gets built even with just 1 card, just that credit card alone with that small balance for 1 year + registration on electoral roll will probably be enough to secure fairly competitive credit if needed.

yep when i was a kid they upped my limit every month. i never used it much, always paid it off.

[SueEllen]

As long as you don't increase it it's fine. You'd be surprised how quick credit gets built even with just 1 card, just that credit card alone with that small balance for 1 year + registration on electoral roll will probably be enough to secure fairly competitive credit if needed.

If it's anything like the CC I had they won't increase it until after you graduate. Even then they expect you to give your salary.

[clearedforlanding]

Replace the word 'credit' with 'debt' on this entire thread an see it for what it is. Credit history - debt history,

They are weapons of financial destruction.

Teach your kids about Vanguard ETFs, ISA wrappers, compound interest & about the Government adding 25p for every £1 they put in a pension.

Credit cards are useful for four things:*

• Travel Bookings
• Hire cars
• Section 75 protection (just pay 1p on any purchase over £100)
• Racking out lines of cocaine.

Think about this: One has to prove their credit worthiness by showing they are in debt.

*Why you really need them (and many of them) is to play the credit card shuffle on French Motorways.

[d000hg]

Think about this: One has to prove their credit worthiness by showing they are in debt.

Nope. You have to prove you can handle being in debt.

Unless you want to rent all your life you will need a mortgage which is a massive debt.