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username9816
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#21
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#21
It's so easy because they want to screw you.
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Jonatan
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#22
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#22
Credit cards are a stupid way to borrow money anyways. The interest rate is damn high. You would save a lot of money if you went to the bank and asked for a personal loan and explained that you would rather want to borrow money from them because they have a much lower interest rate. Then you could use the loan for any spending you need to do before you receive your money and pay it back when you get it. Building up dept at high interest rates is a really silly thing to do. Specially when you can get loans at lower interest other places. Of course, the msartest thing is to keep loans as low as possible because the interest rates on loans is greater than the interest rates on savings (Meaning it is more profitable to pay back loans than to keep savings). In general, if you have loans then your savings should work as a buffer stock in case something were to happen and the rest you use to pay back yoru loans.
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amexblack
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#23
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#23
(Original post by piginapoke)
EDIT They'll just start you off with a low credit limit on the card.
hehe, i have no limit :P :P

Does anyone know how the interest rate on a student loan compares to that of a normal savings account?
my parents don't want me taking out a student loan (from the SLC) as they know I will spend it pretty much instantly. But perhaps if I pretend it's as an investment they would allow me. If I took out a loan, stuck it in my bank to earn interest, and paid it back a few years later, I could make money, right?
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AT82
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#24
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i have got a good credit history becuase of my hosting account and ebay. Both have submitted my information to Eqafax and the Experian so I now have a postive credit raiting

It dosn't mean I will be applying for loans though, it will just make it easier when applying for mortages in the future. Though I have to earn £60k a year to afford a house these days.
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amexblack
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#25
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(Original post by piginapoke)
Literally no limit or just a very high one?
literally no limit. although I expect I would get a call checking I was OK if I was spending hundreds of thousands.

(Original post by piginapoke)
I can't remember the exact figures but I'm pretty sure the interest rate on a student loan is lower than on a savings account. I think my student loan was under 3%, but memory is a little hazy.
I will try that ... although I suspect my dad will still say no as he'll view it as unfairly exploiting the system.. :rolleyes:
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marabara
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#26
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(Original post by piginapoke)
Literally no limit or just a very high one?

I can't remember the exact figures but I'm pretty sure the interest rate on a student loan is lower than on a savings account. I think my student loan was under 3%, but memory is a little hazy.
I think its just about 2.5%, its inflation, or thereabouts.
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crana
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#27
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(Original post by Helenia)
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.
Isn't it usually "£5 or x% of balance, which ever is the highest/lowest (dont remember)"? That's what my mum's are like.

rosie
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Sarky
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#28
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Hi Daveo,

Seen you around on the medschoolguide website a few times (Clarkey) and just thought i would give my 2 pence worth. You're right about how easy it is to get credit. I'm on a gap year and i worked for the first 6 months so i could afford to go to uni. I have been offered loans from NatWest amounting to around 12K, and my credit limit has been raised at least twice despite me telling them i don't want an overdraft! I have a switch card because i don't want the hassle of spending more money than i have but they still insist on hounding me! Does anyone else get phone calls from their banks offering them various financial schemes?

Like you Daveo, if it wasn't for some self control i could be in serious debt at the moment.
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Daveo
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#29
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#29
(Original post by Sarky)
Hi Daveo,

Seen you around on the medschoolguide website a few times (Clarkey) and just thought i would give my 2 pence worth. You're right about how easy it is to get credit. I'm on a gap year and i worked for the first 6 months so i could afford to go to uni. I have been offered loans from NatWest amounting to around 12K, and my credit limit has been raised at least twice despite me telling them i don't want an overdraft! I have a switch card because i don't want the hassle of spending more money than i have but they still insist on hounding me! Does anyone else get phone calls from their banks offering them various financial schemes?

Like you Daveo, if it wasn't for some self control i could be in serious debt at the moment.
Hiya,
You just reminded me Royal Bank Of Scotland offer to loan all medical students £15k over the 5 year course, thats another £15k i've been offered, its madness.
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ThunderCat8
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#30
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On a slightly different point, I was rejected from Nationwide to have a debit card. They told me that over the last six months I have had a lot of returned items to my account and that this means I am not allowed a debit card. The stupid thing is, I have the account as a money box. Money goes in from my job, and money comes out through the ATM machine. I can buy things with cheques (not in shops though, the person has to cash them in), but have only ever paid my parents and family money with cheques, and none of those have ever been returned. I think Nationwide are a complete load of tossers, and I advise anybody not to go there. I am applying to Natwest so that I can have a debit card as they give them out to anyone. Will be such a nice relief to finally say "Kiss my ass Nationwide" and transfer all my dosh to Natwest.

On the credit card matter, I have had through the post in the last few weeks about 5 letters asking if I want to have a credit card. I even got offered a Platinum card from somewhere (not that I know what that means). I ignored the letters and I think that is the wisest thing to do.
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~U~Teedy~U~
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#31
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#31
(Original post by amexblack)
hehe, i have no limit :P :P

For which card? By showing them you can 'afford' it or do you actually have the Centurion hehe
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~U~Teedy~U~
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#32
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#32
(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
You're not actually correct - when you apply for credit, the application is recorded, but the outcome is not - your file does NOT record whether you were accepted. What adversely affects your rating is if you apply for lots of things all at once - it makes it look as though you are desperate, just like dating :P and they think you're a risk.
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ickle_katy
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#33
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#33
i had the best credit card application form the other day...it was sent directly to me...so i dont know how they know how fussy i am.

but heres the deal they were offering me

an entire set of 12 credit cards, differnt colours/shades...so you could match your credit card to your outfit for that shoping trip.

heaven!

and on the credit front, there is a worst thing than having a poor credit history, and thats having no credit history.

love Katy ***
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amexblack
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#34
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#34
(Original post by ~U~Teedy~U~)
For which card? By showing them you can 'afford' it or do you actually have the Centurion hehe
Yes, I am a Corporate Centurion cardholder ... on my dad's account mind. Very rarely gets used in UK though ... occasionally @ heathrow, but that's about all.
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lou p lou
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#35
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(Original post by ickle_katy)
an entire set of 12 credit cards, differnt colours/shades...so you could match your credit card to your outfit for that shoping trip.

love Katy ***
wowowowowow. i am so shallow...

lou xxx
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amexblack
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#36
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(Original post by ickle_katy)
and on the credit front, there is a worst thing than having a poor credit history, and thats having no credit history.
I don't think that's true at all. Students, with presumably no credit history, get credit card offers all the time. Whereas there are people who have trouble getting even mobile phone contracts (let alone credit cards) due to a poor credit history.

Teedy ... you're right, I assumed they'd record the result of any credit report. It's still not a wise idea to apply for cards for the hell of it.
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~U~Teedy~U~
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#37
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(Original post by piginapoke)
Rightly or wrongly, credit history alone isn't always used to determine whether to give someone credit. Tenants may have a hard time, as often the address is used (which may have been associated in the past with someone with abd debt) as well as their accomodation status.
Yes, indeedl; you describe the credit history and also the credit rating - if you are a tenant then your score is lower, unless it is furnished, etc. etc.. You can have a perfect credit record, i.e. inactive or no problems at all, but if you earn small potatoes then you're not guaranteed.

Amex: students are a special thing, 'cause presumably they are going to go on to earn money and also they spend spend spend
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~U~Teedy~U~
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#38
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(Original post by amexblack)
Yes, I am a Corporate Centurion cardholder ... on my dad's account mind. Very rarely gets used in UK though ... occasionally @ heathrow, but that's about all.
hehe Did yours come in a posh box? My Dad's did...as well as the separate card for all the flight lounges or whatever lol...It isn't actually a great card to have in the UK - the benefits are way better for American cardholders...
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ickle_katy
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#39
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(Original post by amexblack)
I don't think that's true at all. Students, with presumably no credit history, get credit card offers all the time. Whereas there are people who have trouble getting even mobile phone contracts (let alone credit cards) due to a poor credit history.

Teedy ... you're right, I assumed they'd record the result of any credit report. It's still not a wise idea to apply for cards for the hell of it.

credit card "offers" from not very reputable companies. o2 don't give contracts to students (the guy lied to get me one) and my best mate had to go on T-mobile for a year before o2 would accept her. both of us have zero credit history.

love Katy ***
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amexblack
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#40
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(Original post by ickle_katy)
credit card "offers" from not very reputable companies. o2 don't give contracts to students (the guy lied to get me one) and my best mate had to go on T-mobile for a year before o2 would accept her. both of us have zero credit history.

love Katy ***
O2 don't give contracts to students?? I think that's BS. I had an O2 contract, with a direct debit from my own bank account.

What's more, when I recently got a 3 contract, I wasn't even asked my age or occupation -- I signed the paperwork and got the phone in about 20 minutes. I'm fairly sure it was a similar situation with O2 .... how would they even know I was a student at the time?
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