Getting a credit card - Credit Limit?

liverpool2044

Hi im applying for a credit card, im 18 and im going for nationwide. After applying they have offered me a card subject to a credit limit of £600. Can anyone tells me what this means as im pretty clueless. thanks

Reply 1

Tiger Rag

You can't spend any more than £600. It's like someone giving you £600 and that's all you have.

Reply 2

liverpool2044

Original post by OU Student

You can't spend any more than £600. It's like someone giving you £600 and that's all you have.

So why do people like want a\ lower credit limit? ive seen some people saying there's is too high. Would mine be a problem if i didnt have a part time job and still doing a levels?

Reply 3

Tiger Rag

Original post by liverpool2044

So why do people like want a\ lower credit limit? ive seen some people saying there's is too high. Would mine be a problem if i didnt have a part time job and still doing a levels?

Probably to stop the temptation to stop them spending so much money.

It shouldn't a be problem. The amount they offer you is based on your income.

Reply 4

liverpool2044

Original post by OU Student

Probably to stop the temptation to stop them spending so much money.

It shouldn't a be problem. The amount they offer you is based on your income.

http://www.nationwide.co.uk/products/credit-cards/ncc/apply

this is the one ill apply for. Do i have to have money constantly being put in to my account? thanks

Reply 5

SophieSmall

Honestly, now this is going to sound patronising but I'm actually being very serious.

You should not be using a credit card at all if you don't even know what a credit limit is. You should ONLY use a credit card if you know exactly what it all means and all possible repercussions. And you should NEVER use a credit card if you can't pay it back on time, and I mean ON TIME not a day late. As not using a credit properly card WILL massively **** up your life and will have a big affect on your future.

Please don''t use it until you know exactly what you're doing, and I'm surprised they didn't go over every detail with you. You need to book an appointment with your bank so they can talk it over with you until you know exactly what you're getting into.

(edited 8 years ago)

Reply 6

Tiger Rag

Original post by SophieSmall

This. I booked an appointment with my bank to apply. There were a few bits I wasn't too sure about. For the most part, I knew the basics.

(edited 8 years ago)

Reply 7

Asolare

I stand by what Sophie says, you don't sound very clued up on what a credit card is and as tempting as seemingly ''free'' money is, you should be sensible and say no :frown:

Reply 8

Tiger Rag

I wouldn't bother. You don't sound as though you know much about them at all. I got one because it's the easiest way to use money abroad. (cheaper than using a debit card and I don't like the idea of carrying large amounts of money around with me) It also meant that I could buy some expensives items I needed. I have the money; but I know I have the extra protection. I can afford to pay back the money each month and the bank know this.

I did (and there is probably my thread on here somewhere) ask a few questions on a few websites beforehand because there's a few bits I wasn't too sure about and the amount of information out there is just too overwhelming.

Reply 9

Zerforax

Also consider why you need the credit card and how you plan to use/pay off.

If you end up in a situation that you can't repay the balance on time, you suddenly rack up interest costs and it is a very expensive way to borrow money.

Reply 10

liverpool2044

i just want a credit card so that i can store most of my money and then use that to pay for things online. i cant do that at the moment and all my mates have them despite not having jobs and just doing a levels. i want one for online shopping at christmas as its easier. so is there a good account i could do?

Reply 11

Tiger Rag

You should be able to get a debit card if you have a current account, to pay for stuff online. That way, you can only spend money you have.

Reply 12

liverpool2044

Original post by OU Student

You should be able to get a debit card if you have a current account, to pay for stuff online. That way, you can only spend money you have.

im with nationwide at the moment with a regular savings card. This doesn't have a security code so I can only use it at cash machines. would you be able to find me a suitable debit on the nationwide site? thanks

Reply 13

Tiger Rag

Original post by liverpool2044

You should just be able to go on there and look at their current accounts.

Reply 14

Foys88

Original post by liverpool2044

You are after a current account with debit card. But if you can pay ur credit card off every month then it may be a good idea. Im only saying this because i once had fraud on my credit card with MBNA and they were very fast, quick, ordered me a card a started an investigation. It did not affect me at all because it was on my credit card and not my bank account where my salary went into. When fraud happens in ur bank account its such a long procedure and u may not get ur money back if you dont work with police and fill out the fraud forms. I now ONLY purchase with my credit card and pay it off every month.

Reply 15

Tiger Rag

Original post by Foys88

However, I had fraud on my bank card and the bank were very quick and I got my banck with no problems. Silly me wasn't aware that I had to get the police involved and went straight to the bank. I had to fill out a form, talk to a few people and it was all sorted within a few days.

OP - I don't think you fully understand what credit cards are. Until you do, don't apply for one.

Reply 16

James Milibanter

I've been working since I was 17 and ever since my 18th Birthday I get tonnes of offers from Credit card companies trying to get me to sign up. I had one company offer me a credit limit of £1.5k. Do you know what I did with all the offers? Ripped them up and through them away. I'm at work and have a steady wage yet I do not have or want a credit card. Sophie hit the nail on the head, but I'd go further. Unless for whatever reason, you'd actually need credit, and you have the ability to pay it all back ON TIME, then do as me and disregard it.

Reply 17

Tiger Rag

I kept getting offers of them too despite the fact that I'd probably get rejected. I had no need to get one. They're fine imo if you're sensible with them.

Reply 18

James Milibanter

Original post by OU Student

I kept getting offers of them too despite the fact that I'd probably get rejected. I had no need to get one. They're fine imo if you're sensible with them.

Yes, but even still, if they're not really needed, then it's just asking for trouble. Anyone stupid enough to see it as free money shouldn't be responsible for an overdraft, let alone a credit card.