Best Credit Card for 18y.o

Wats_in_a_name

I am 18 and still in 6th year but am looking to get a credit card as I will be traveling a lot next year and need one with a reasonable credit limit for hotel deposits etc. I know my original credit limit will be very small so would like to build up a history with the bank & therefore credit limit.

I have tried my Bank AIB but they said you have to be in third level. Is this the case for all banks? I am technically a student with no income but have a fair bit of money. I'd be using the card more so for convenience then buying things on credit.

Does anyone know of the best bank/cards to try?

Baron_Kunkel

Permanent TSB are replacing Laser cards with Visa debit cards. They are as widely accepted throughout the world as Visa credit cards as they use the same terminals/systems. Visa debit card is definitely the way to go for an 18 year old student. They work off your current account and an overdraft can be applied for to cover your deposits etc.

Wats_in_a_name

I have a UB visa debit card at the moment but ideally would like a credit card now to start building up a proper credit limit. Also would like to move my current account back to AIB or BOI for a laser card as there cheaper to withdraw money internationally from.

Toots

AFAIK, there aren't currently any banks offering credit cards to second level students. If either of your parents have a credit card, they could make you an additional card holder on their account but I'm not sure how easy it would be to convince them to do that

**Timbuk2**

Sorry to thread hijack, but I have a related question.

I am an 18y.o. college student thinking about getting a credit card. I am with two banks, AIB Student Account (1.5 months - I read somewhere that you need to be with them for 6 months to apply for a CC) and UB (just under 1 year - note that I joined with an Under 18 account but I turned 18 five months ago, so I'm not sure what type of account I have now!).

Is it possible for me to get a credit card? I am in first year, and most significantly I don't have a source of income.

I was going to fill out the online form to apply to see what they say, but if they decline my application I don't really want it appearing on my credit report - there is nothing else on it, as far as I know!

I do have a Visa Debit card, which I find great, but for things like buying expensive books, etc., it's annoying that I am only able to spend the money in my account. I have often had to wait until I went home for the weekend in order to get money out of one of my Deposit Accounts ( I have accounts in the Post Office and the Credit Union) before I could buy the book.

Thanks.

Sofa King Great

My advice would be to steer clear of a credit card. Particularily seeing as you have no income. You'd be better off sticking with a Visa Debit. If you really want to be able to spend in excess of what is in your account maybe try get a small overdraft on the account?

I couldn't see a bank allowing you a credit card either

Wats_in_a_name

I would only be using the credit card to build up a limit for when travelling and only buying products that I can afford and clear of before interest kicks in.

Bjorn Bored.

your mad,dont go down the credit card road as a student ffs,its a disaster,if you really must have one then get a prepaid one like payzone,that way your not going to get into trouble!!

Sofa King Great

You say it is for travelling? Do you intend on financing your travels by credit card? You'd be better off showing that you have no debts and an income and go for a student loan.

Wats_in_a_name

Ok. Ill try and spell this out for people.

I am 18 and in the summer I will be doing a lot of traveling. I will be paying for the traveling from my own savings which I have. I want a credit card, because if used properly they can save you a lot of money. It means that if I am paying for car hire they take a deposit. It makes a hell of a lot more sense to have the deposit on a credit card instead of on my money. Credit cards also give you (around) 56 days interest free credit. Which means I can have my money in my savings account earning interest for ME.

your mad,dont go down the credit card road as a student ffs,its a disaster,if you really must have one then get a prepaid one like payzone,that way your not going to get into trouble!!

I really am not mad at all. Unlucky some people, I'm not an idiot. I know I have to pay back the credit card debt. I would only buy stuff that I know I can afford to pay off before the interest kicks in.

Suggesting the payzone card as an alternative is laughable. You have to pay to put money on and to spend the money. You'd actually have to be mad to use one of those.

I currently use a UB Visa Debit card which is handy enough but can be a bit of a nightmare for large purchases. Was in America and wanted to buy a laptop but couldn't because I didn't have the money in my Current account it was in a savings account. If I had a credit card wouldn't have that problem.

People need to stop going mental about students using credit cards. Credit cards are extremely useful there safe, convenient and can save you money. You just need a brain to use one.

Wats_in_a_name

**Timbuk2** wrote:

Is it possible for me to get a credit card? I am in first year, and most significantly I don't have a source of income.

I'd call into your local branch and see what they say. I know that if I was in 3rd level I would have got a credit card with no hassle at my bank just bear in mind the credit limit will be quite small to start off with but once you have a history of clearing it off on time you should be able to get a increase relatively easily.

kaiser sauze

Wats_in_a_name wrote: »

I have a UB visa debit card at the moment but ideally would like a credit card now to start building up a proper credit limit. Also would like to move my current account back to AIB or BOI for a laser card as there cheaper to withdraw money internationally from.

Despite the well thought out post you made, which contains valid points, I would still say to you to avoid the credit card. I used to have a credit card, but since I have Visa debit now I don't need it and cancelled it, I have not noticed an iota of difference.

It doesn't cost you anything to 'pre-load' your Visa debit either and, by sticking to what money you actually have, you avoid impulse purchases.

Nonoperational

I got an AIB student credit card when i was 19 in first year college. Limit started at €650. I didn't have much income maybe €100 a week max. Got it no problem and could increase the credit limit by €600 every 6 months online.

I heard they are more strict giving them out now though and slower to let you raise the credit limit. If you call in and ask they will go through it with you.

Sofa King Great

Wats_in_a_name wrote: »

I want a credit card, because if used properly they can save you a lot of money. It means that if I am paying for car hire they take a deposit. It makes a hell of a lot more sense to have the deposit on a credit card instead of on my money. Credit cards also give you (around) 56 days interest free credit. Which means I can have my money in my savings account earning interest for ME.

Assuming your savings account pays 5% (which it probably doesn't)

Having €1000 on deposit at 5% for an extra 56 days will get you €7.67. so that is a gain of €7.67 on deposit BUT you have to pay stamp duty of €40. Therefore a loss of €32.33.

By your calculations and assuming 1. You pay off your credit card on the 56th day without incurring any interest 2. You earn interest at 5% on savings 3. Stamp duty remains at €40 you would have to spend €5,215 on your card and retain €5,215 on deposit for an extra 56 days before it would be cost effective to do it this way.

**Timbuk2**

Stamp duty is €30 on credit cards, as far as I know. This is still quite steep though, seeing as Visa Debit is only €5 a year.

dotsman

Why is everyone attacking the poster for wanting a credit card? He knows how it works (which is more than most people twice his age), and intends to use it responsibly. Having a credit card as a student is the best time to learn how to use one.

If you are ever to screw up with a credit card, it's a lot better to learn your lesson when you are only a few hundred in debt, have no financial commitments or dependent persons, and are more likely to receive help from bank of mom/dad than when you're in your thirties, have clocked up ten grand on the card, have a mortgage, car loan repayments and bills coming through the letterbox, 2 kids to feed at home and have nobody to step up and help you out.

At the age of 29, I use my credit card several times a week and put about ten grand a year through the card. The only time I have ever been penalised was when I missed a payment one month, and another separate incident saw me paying interest for one month. Both these happened within the first year of me having the card (I was 19) and because the sums were tiny, I only paid a few euro in interest/charges.

Most people aren't perfect financial planners/budgeters. These skills mainly come from experience. And as I said, it's better to gain that experience when you're young (and learning lot's of other things about life) dealing with small amounts and have someone/something to fall back on than when it's too late.

###############################################

As for answering the OP's question: Unfortunately, I would imagine that all other banks would give you the same response as your own (and for good reason). Typically, a credit card should only ever be issued to someone with income. Third level students are dealt with as an exception (and are by no means guaranteed they'll be given one) as they are likely to have some income throughout their college life, are more likely to have parental support, are treated as a preferential demographic and are more likely to have an income post college.

You're bet bet is to get added to one of your parents card (as an authorised user). This is very common for people in your situation. Basically, a second card is issued on the account, and there are no changes to limits/interest etc.

The only downside is that (a) your parents have to trust you and (b) they will see what you buy (so you shouldn't use it in an adult store or sign up to porno sites etc;)) as the bill will still be sent to them.

broker2008

I did exactly what you are looking to do but I was in first year in college.

If your parent's are in the same bank, see if they would go as guarantor for the card and look for credit limit of say €500 - as you pay it off the limit will gradually go up in time as long as you are paying balance off in full each month - I think you have demonstrated that you know that.

Alternatively, get a parent to take out MBNA CC and request a small limit as well as additional card and set up 24hr banking and pay for it from your account - liability upto their chosen credit limit.

Be careful about putting account in credit though as apparently one is not insured according to MBNA. Good luck.

**Timbuk2**

I applied for a credit card online with AIB anyway (1st year college student, only with bank for 2 months).

If they decline my offer, will this negatively impact my credit rating? If in the future I apply for a credit card will I be less likely to be offered one due to having been refused in the past?

Xavi6

No, declined applications don't effect your credit rating because if anyone checks in future you've technically never had a credit history.

If you don't meet the bank's guidelines then it's no big deal, and you can just apply again in a few months anyway.

Re: credit cards - if you can get one and avoid interest by paying your statement balance every month then they are the best thing ever, especially if you're getting reward points.

Wats_in_a_name

Sofa King Great wrote: »

Assuming your savings account pays 5% (which it probably doesn't)

Having €1000 on deposit at 5% for an extra 56 days will get you €7.67. so that is a gain of €7.67 on deposit BUT you have to pay stamp duty of €40. Therefore a loss of €32.33.

The Stamp duty is €30 on a credit card. I have to pay €5 for my Visa Debit card but get my AIB laser paid for me so if I was to get a credit card I could cancel my UB account and therefore I would be technically paying €25 more for the credit card which means I would be need to spend around €4,100 a year to 'break even' with the 4% interest I get. Which isn't really that much when my car insurance would account for €2000 a year, petrol another €750 or so.

That was only one side of why I would like a credit card and how it can save me money. For example when I was in America I saw the Macbook I was going to get for far cheaper but as it takes 3 days to transfer money from my Savings to Current account I didn't have the money in time so therefore had to buy it her which cost me roughly €200 extra.

Also, I would like a useable credit limit for when I go traveling and a credit card is needed in some hotels to check in -some don't allow you to check in with a Visa Debit card as I learnt the hard way!

DubDJ

Sorry to steer the post in a different direction. But i've a question, probably an obvious one to most, but i'm unsure.

I've recently applied for an AIB Student Mastercard. I got the pin out in the post and it said i'd recieve my card in a few days.
I've read that the limit of these cards is €600-€650. But say if I want to buy something online that costs €2,500 and I have the money in my bank account. Can I transfer the money to this card (Just like moving money to a bank account) and pay for something of that price even though my limit is 600. Maybe this sounds extremely far-fetched or maybe it is a very normal thing I don't know. Just wondering can anybody help explain.

Not sure if the 600 is just the amount your allowed to be in debt by. Or maybe it's the max you can spend with the card. Any help i'd be grateful with

Thanks,

kaiser sauze

DubDJ wrote: »

Sorry to steer the post in a different direction. But i've a question, probably an obvious one to most, but i'm unsure.

I've recently applied for an AIB Student Mastercard. I got the pin out in the post and it said i'd recieve my card in a few days.
I've read that the limit of these cards is €600-€650. But say if I want to buy something online that costs €2,500 and I have the money in my bank account. Can I transfer the money to this card (Just like moving money to a bank account) and pay for something of that price even though my limit is 600. Maybe this sounds extremely far-fetched or maybe it is a very normal thing I don't know. Just wondering can anybody help explain.

Not sure if the 600 is just the amount your allowed to be in debt by. Or maybe it's the max you can spend with the card. Any help i'd be grateful with

Thanks,

Yes.

You are allowed to pay money into the account and put it into a credit (to you) balance. I have never heard of limits on positive balances, but I can be corrected on that.

So, to buy an item worth €2,500, and you were using the whole amount of your limit, you would need a positive balance of €1,900 or €1,850 (depending on whether it is 600-650 limit)

DubDJ

kaiser sauze wrote: »

Yes.

You are allowed to pay money into the account and put it into a credit (to you) balance. I have never heard of limits on positive balances, but I can be corrected on that.

So, to buy an item worth €2,500, and you were using the whole amount of your limit, you would need a positive balance of €1,900 or €1,850 (depending on whether it is 600-650 limit)

Great thanks a lot for the speedy response too. Just always been curious about that and I wasnt sure if it was just my head making that rule up or if ive heard it before.

If you pay the card off monthly on time with no money owed does that mean theres no interest to be paid or any related fees other than Stamp Duty?

dotsman

DubDJ wrote: »

Great thanks a lot for the speedy response too. Just always been curious about that and I wasnt sure if it was just my head making that rule up or if ive heard it before.

If you pay the card off monthly on time with no money owed does that mean theres no interest to be paid or any related fees other than Stamp Duty?

Yes.

Stamp duty is the only constant. Interest and fees are only for outstanding balances. You will have to pay currency conversion for any non-euro payments, but these typically work out much cheaper than allowing the website/shop to convert. You won't see the currency conversion charges as they are included in the total conversion amount.

psycho-hope

**Timbuk2** wrote: »

I applied for a credit card online with AIB anyway (1st year college student, only with bank for 2 months).

If they decline my offer, will this negatively impact my credit rating? If in the future I apply for a credit card will I be less likely to be offered one due to having been refused in the past?

ring your branch net week if you havent heard from them, i applied on line and they never sent the details to my branch.

DubDJ

dotsman wrote: »

Yes.

Stamp duty is the only constant. Interest and fees are only for outstanding balances. You will have to pay currency conversion for any non-euro payments, but these typically work out much cheaper than allowing the website/shop to convert. You won't see the currency conversion charges as they are included in the total conversion amount.

Yeah I forgot about the fx fee's but once I know I wont be charged little random fees thats perfect. Thanks for the help.