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Previously on "Students Credit Card"

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  • clearedforlanding
    replied
    Originally posted by d000hg View Post

    Not sure what you think you're proving other than the ability to use a search engine. You can have credit without being in debt.
    Thank you. I had not thought of it that way.

    Leave a comment:


  • d000hg
    replied
    Originally posted by clearedforlanding View Post
    Not sure what you think you're proving other than the ability to use a search engine. You can have credit without being in debt.

    Leave a comment:


  • clearedforlanding
    replied
    Originally posted by ladymuck View Post
    I tend to see debt as credit that you can't manage.

    There is nothing wrong with taking credit, or being in debt, if you can afford the repayments.
    The interest rate is the main factor to consider, affordability of repayments comes after.
    Last edited by clearedforlanding; 12 October 2021, 21:02.

    Leave a comment:


  • clearedforlanding
    replied
    Originally posted by d000hg View Post
    If you want to rent that's fine. I never said you shouldn't, but in the UK most aspire to own their own home. That's the reality.


    I don't think anyone is, they're not the same thing.
    https://www.investopedia.com/terms/d/debt.asp

    Leave a comment:


  • ladymuck
    replied
    I tend to see debt as credit that you can't manage.

    There is nothing wrong with taking credit, or being in debt, if you can afford the repayments.

    Leave a comment:


  • d000hg
    replied
    Originally posted by clearedforlanding View Post

    Renting your whole life seems to work for the Germans.
    If you want to rent that's fine. I never said you shouldn't, but in the UK most aspire to own their own home. That's the reality.

    Debt is debt. Let's stop calling it credit.
    I don't think anyone is, they're not the same thing.

    Leave a comment:


  • clearedforlanding
    replied
    *their

    And other typos.
    ​​​​

    Leave a comment:


  • clearedforlanding
    replied
    Originally posted by d000hg View Post
    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.
    Renting your whole life seems to work for the Germans.

    Property ownership is a liability when it is ones primary residence. A mortgage sacrifices flexibility and mobility which are two of the value propositions that a contractor still holds has control of.

    The UK has a disfunctional system that relies on a mortgage system. A mortgage system that extends term because capital gain is greater than income growth. Term is needed to increase final value
    ​​of sale.

    Debt is debt. Let's stop calling it credit.

    I use debt as a tool, one that becomes more powerful as interest rates increase. I buy debt cheap, spend it on assets and when it is time to settle said debt, either buy more or settle it.

    But who the **** am I to talk about this. I started running cable and now own a company that dominates it's sector.

    The most astute example in this thread comes from NLUK (which is often the case) who rolled 0% credit cards to buy his first apartment.

    In the current climate, if I was not a drunken rambling millionaire, I would rent, if a contractor.

    If I had a crystal ball that said I would stay put for a finite period of time by which my interest was paid down, a mortgage might make sense.

    The steaming tulipty reality is the main reason that a mortgage is such a life goal is that the tenancy laws in the UK are so tulip, that a mortgage is the better of 2 evils.

    If tenancy laws were reformed to offer a tenant dignity and stability, this construct of upward wealth creation would be a non issue.

    A system where one must use debt to create a foundation for the bottom of there psychological pyramid of needs is defunct and an insult to our children.

    ​​​​​​Go and get a credit card so over time you will not have to bend over to a property owner as you have shown you can tolerate debt is a boring, dangerous distopia.


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    Leave a comment:


  • d000hg
    replied
    Originally posted by clearedforlanding View Post
    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.

    Leave a comment:


  • clearedforlanding
    replied
    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.

    Leave a comment:


  • SueEllen
    replied
    Originally posted by jayn200 View Post

    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.

    Leave a comment:


  • vetran
    replied
    Originally posted by jayn200 View Post

    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.

    Leave a comment:


  • jayn200
    replied
    Originally posted by BigDataPro View Post
    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.

    Leave a comment:


  • BigDataPro
    replied

    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.
    Last edited by BigDataPro; 7 October 2021, 17:16.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by SueEllen View Post

    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
    Last edited by northernladuk; 7 October 2021, 15:15.

    Leave a comment:

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