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Daveo
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#1
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I'm an 18 year old student, I have no job therefore no income.

Since turning 18 I have received many offers of credit cards and loans through junk mail adressed to me.

I decided I would fill in one of these credit card forms one day and have since filled in each form I got offereing me a credit card. - I was completely honest on my application form declaring 0 income.

I now have 5 cards with a combined credit limit of £12,000.

How can I possibly be expected to pay this off with no income. Is credit too easy to obtain which could lead to people getting into huge debts which they are unable to repay.

For the record I only use one card and always pay off the balance.
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AT82
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(Original post by Daveo)
I'm an 18 year old student, I have no job therefore no income.

Since turning 18 I have received many offers of credit cards and loans through junk mail adressed to me.

I decided I would fill in one of these credit card forms one day and have since filled in each form I got offereing me a credit card. - I was completely honest on my application form declaring 0 income.

I now have 5 cards with a combined credit limit of £12,000.

How can I possibly be expected to pay this off with no income. Is credit too easy to obtain which could lead to people getting into huge debts which they are unable to repay.

For the record I only use one card and always pay off the balance.
Yep my parents got into huge credit card debts they thought they could pay it all of at the time, they still owe £12k.
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GH
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How many companies have rejected you?
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What's Chico Time Precious?
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Of course, these companies want to give out cards for people to use, its how they make their money after all. I'm staying away from them at all costs, and personal loan finance companies
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Daveo
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(Original post by 2776)
How many companies have rejected you?
3 have rejected me completely and 2 initially rejected my application but later phoned me up to say they changed their minds.
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AT82
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(Original post by Absolution)
Of course, these companies want to give out cards for people to use, its how they make their money after all. I'm staying away from them at all costs, and personal loan finance companies
hehe me too, my student loan is bad enough
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edufly
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(Original post by Daveo)
I'm an 18 year old student, I have no job therefore no income.

Since turning 18 I have received many offers of credit cards and loans through junk mail adressed to me.

I decided I would fill in one of these credit card forms one day and have since filled in each form I got offereing me a credit card. - I was completely honest on my application form declaring 0 income.

I now have 5 cards with a combined credit limit of
£12,000.

How can I possibly be expected to pay this off with no income. Is credit too easy to obtain which could lead to people getting into huge debts which they are unable to repay.

For the record I only use one card and always pay off the balance.


They'll get you to pay it off as soon as you strt earning a salary.

Young people are more tempted to fall for credit offers as they tend to have less money of their own and plus they are at an age where they want to have the latest crazes and styles.

But to get one over on the firms offering credit, tell them to shove it up their ***!
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lou p lou
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(Original post by piginapoke)
But you have to make a minimum payment each month on a credit card, not just pay later when you can afford it.
but it is very low- my parents have a £5 minimym payment per month (they do tend to pay it all off though)

lou xxx
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Daveo
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(Original post by piginapoke)
But you have to make a minimum payment each month on a credit card, not just pay later when you can afford it.
And then you'd be paying almost 20% interest on any balance you owe.
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Daveo
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(Original post by piginapoke)
Exactly, a ludicrously high rate of interest by any standards. A loan is much better in terms of interest (but still not great), but they are a little harder to acquire than a credit card.
I once sent a loan form back too just out of interest but that was flatly refused thankfully.
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Bhaal85
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(Original post by Daveo)
I'm an 18 year old student, I have no job therefore no income.

Since turning 18 I have received many offers of credit cards and loans through junk mail adressed to me.

I decided I would fill in one of these credit card forms one day and have since filled in each form I got offereing me a credit card. - I was completely honest on my application form declaring 0 income.

I now have 5 cards with a combined credit limit of £12,000.

How can I possibly be expected to pay this off with no income. Is credit too easy to obtain which could lead to people getting into huge debts which they are unable to repay.

For the record I only use one card and always pay off the balance.
That is ridiculous.
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Helenia
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(Original post by lou p lou)
but it is very low- my parents have a £5 minimym payment per month (they do tend to pay it all off though)

lou xxx
Well, you've answered your own question - if they pay it off every month there will not be much balance left outstanding and therefore minimum payment will be low (it's a percentage of the total owed). If you max out the card though, and don't pay it off, minimum payment will be high, as will the interest.
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iiikewldude
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(Original post by amazingtrade)
Yep my parents got into huge credit card debts they thought they could pay it all of at the time, they still owe £12k.
wow thats quite bad, that means they'll be paying appr 2k a year just on interest.
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iiikewldude
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(Original post by Daveo)
I'm an 18 year old student, I have no job therefore no income.

Since turning 18 I have received many offers of credit cards and loans through junk mail adressed to me.

I decided I would fill in one of these credit card forms one day and have since filled in each form I got offereing me a credit card. - I was completely honest on my application form declaring 0 income.

I now have 5 cards with a combined credit limit of £12,000.

How can I possibly be expected to pay this off with no income. Is credit too easy to obtain which could lead to people getting into huge debts which they are unable to repay.

For the record I only use one card and always pay off the balance.
maybe they see as ur a med student ur likley to be able to pay it off in the future. U could always take out the 12k and declare yourself bankrupt. 3 years then the debts gone (i think).
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Daveo
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(Original post by iiikewldude)
maybe they see as ur a med student ur likley to be able to pay it off in the future. U could always take out the 12k and declare yourself bankrupt. 3 years then the debts gone (i think).
I always just put student in the occupation box though. And i could jsut spend the whole lot but fortunately I have self control and manage not to.
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AT82
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(Original post by iiikewldude)
wow thats quite bad, that means they'll be paying appr 2k a year just on interest.
Its not as bad as it sounds, the companies have agreed not to charge any interest on top of what my parents paid. The biggest mistake my parents maid was to take out credit cards to pay of credit cards. They thought the beliefs would ocme if they could not pay however the unless the credit is secured against your house if you can't pay up its just tough sh*t the credit card companies will just have to whistle for their money.

It just means you will have really bad credit history.
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Daveo
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(Original post by piginapoke)
Bankrupcy doesn't quite work that way. For a start, you have to make some effort to pay the debt back (based on a means test) so its not really a good idea to become bankrupt when you really aren't. Also, some of your stuff may be repossessed to pay off your creditors. Then, after the bankrupcy is lifted, it will be very hard to get credit again.
If you know how to play the system you can make it work. One of my dads friends has been bankrupt twice, he now has a business built on borrowed money and a half a million mortgage on a house in portugal.
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amexblack
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(Original post by Daveo)
3 have rejected me completely and 2 initially rejected my application but later phoned me up to say they changed their minds.
You should be careful about applying for credit cards, especially just for the fun of it!! The number of rejections you get directly affects your credit rating -- so those 3 companies that have rejected you have most likely caused your rating to go down. A low rating, as I'm sure you're aware, might make it more difficult for you to apply in the future for a credit card, a loan, or even getting your phone company to allow you to roam abroad
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marabara
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(Original post by amexblack)
You should be careful about applying for credit cards, especially just for the fun of it!! The number of rejections you get directly affects your credit rating -- so those 3 companies that have rejected you have most likely caused your rating to go down. A low rating, as I'm sure you're aware, might make it more difficult for you to apply in the future for a credit card, a loan, or even getting your phone company to allow you to roam abroad
that's correct, so don't just apply for cards and loans for fun - one rejection is probably ok, but any more than that then you are starting to build up a bad credit record

having said that, having a credit card and paying it off every month will build up a good credit record which will be useful for applying for loans, mortgages, etc in the future

be aware that going bankrupt will stop you working in certain professions, including a lot of jobs in the City
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fishpaste
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Is it not a good idea then, to tick the box applying for the HSBC credit card when applying for their student account? Given that I have no income, and suspect if they'd reject anybody they'd reject me.
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