Credit Card at Age 20?

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VaniIIa
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So I'm currently 20 years old and in full-time employment.

A few of my friends have credit cards which they're using to improve credit score. They mainly just use it to fill their cars up with petrol.

Is that a good idea?

Any thoughts appreciated.
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Fudgey123
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Yes, it's a good idea!

I had my first credit card at 18 purely to improve my credit score.

Just be careful, some people can get carried away when it comes to having big credit limits that some companies offer at first. But buy some things and then pay it off when your bill is due, and you'll keep your credit score good!
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VaniIIa
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(Original post by Fudgey123)
Yes, it's a good idea!

I had my first credit card at 18 purely to improve my credit score.

Just be careful, some people can get carried away when it comes to having big credit limits that some companies offer at first. But buy some things and then pay it off when your bill is due, and you'll keep your credit score good!
Thanks for the speedy reply!

What's a good APR for a first credit card?
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Fudgey123
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(Original post by VaniIIa)
Thanks for the speedy reply!

What's a good APR for a first credit card?
You're welcome!

I'm not an expert on credit card APR, but to be honest, it's best if you always pay the credit card bill off on time, regardless of how much you've spent on it. Because if you don't pay the card off on time, they will usually fine you for paying late with a 'late payment fee' and then the APR rates can sting you if you pay the card off bit by bit, so you eventually end up paying more back than what you originally spent! And this happening will affect your credit score as well then.

I have an Amazon Reward credit card, because every time I spent on the card it gives me some Amazon points which is cool! I also have a TSB student credit card as I hold a student account with them. Most banks can offer really good student accounts that come with credit cards, if you're looking for a good one!

I very rarely spent big on my credit cards, just petrol or food etc and then pay it off!
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VaniIIa
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(Original post by Fudgey123)
You're welcome!

I'm not an expert on credit card APR, but to be honest, it's best if you always pay the credit card bill off on time, regardless of how much you've spent on it. Because if you don't pay the card off on time, they will usually fine you for paying late with a 'late payment fee' and then the APR rates can sting you if you pay the card off bit by bit, so you eventually end up paying more back than what you originally spent! And this happening will affect your credit score as well then.

I have an Amazon Reward credit card, because every time I spent on the card it gives me some Amazon points which is cool! I also have a TSB student credit card as I hold a student account with them. Most banks can offer really good student accounts that come with credit cards, if you're looking for a good one!

I very rarely spent big on my credit cards, just petrol or food etc and then pay it off!
Yeah, I don't plan on being an idiot with it haha.

So if I put the money back on my credit card as soon as I buy petrol? Will I have to pay any APR? L

That's literally all I'm going to use it for I think - buy petrol with it and then put the money on the credit card.
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Fudgey123
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(Original post by VaniIIa)
Yeah, I don't plan on being an idiot with it haha.

So if I put the money back on my credit card as soon as I buy petrol? Will I have to pay any APR? L

That's literally all I'm going to use it for I think - buy petrol with it and then put the money on the credit card.
With APR it purely depends on the credit card you go for, the ones I have are 0% interest free for about 50ish days, so say I spend £30 for petrol on my credit card, when the bill arrives after about a month, as long as I put the £30 back on the card before the payment date, it'll still only cost me the amount I've spent (£30!). After the payment date has passed, that's when the APR goes on, and the amount you need to pay back does leap up then!

I think it's definitely worth going for a credit card with some sort of rewards scheme though, so you get something out of it then.
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DMidds96
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(Original post by VaniIIa)
Yeah, I don't plan on being an idiot with it haha.

So if I put the money back on my credit card as soon as I buy petrol? Will I have to pay any APR? L

That's literally all I'm going to use it for I think - buy petrol with it and then put the money on the credit card.
Im 22 and have a credit card. I got a credit card with Lloyd’s TSB after they credit checked me and they gave me a good limit of £1500.

I had been working full time for almost 2 years and spending a lot so my income/expenditure probably helped as well in terms of the limit they gave me. This credit card is 0% interest and 0% APR for 36 months. There are a few conditions including that I do not make ‘cash purchases’ which basically means withdrawing money from an ATM on my credit card (Never a good idea!) or buying things that could later be used as Cash (as in casino chips etc). So fairly straight forward.

I also have to meet the minimum payment each month which is £5 or 10% of the balance (whichever is higher) so for example if I had £700 on there it would be a minimum payment of £7.

They give you about 2 weeks to pay the minimum payment so it’s very safe and I never have any issues with being ‘overdue’ and therefore being charged.

After the 36 months the APR and interest are very high (around 18%) however I would never intend to have any balance left on this after 2 and a half years.

At first I just used the card for credit building purposes (paying for random stuff and paying it back immediately to build credit). You can also use your credit card to purchase stuff that you want protection on (for example flights).

As as I have now gone travelling and am becoming a student in September I have started to use it as an actual credit card (borrowing £100’s and paying back the minimum payment) however as soon as I go back to part time work I intend to pay this off bit by bit and would also never leave it till the 36 months was up and still have balance on this.

As long as you are sensible with your money and don’t miss the minimum payment (and get a good credit card) then YES it’s a good idea! 😁

Hope this helps!!
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niteninja1
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Ive had a credit card since i was 18 after my first 3months i got a 0% card
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xoxAngel_Kxox
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(Original post by Fudgey123)
With APR it purely depends on the credit card you go for, the ones I have are 0% interest free for about 50ish days, so say I spend £30 for petrol on my credit card, when the bill arrives after about a month, as long as I put the £30 back on the card before the payment date, it'll still only cost me the amount I've spent (£30!). After the payment date has passed, that's when the APR goes on, and the amount you need to pay back does leap up then!

I think it's definitely worth going for a credit card with some sort of rewards scheme though, so you get something out of it then.
I always do this too, and for some reason people still think it must cost me money just because it's a credit card. I actually make money from my credit card because it's a rewards card so I do all my spending on it, and get my rewards but still don't pay a penny of interest!

I usually get around £10 a month in Tesco vouchers, which doesn't sound a lot, but it's better than nothing.
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Emma:-)
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(Original post by VaniIIa)
So I'm currently 20 years old and in full-time employment.

A few of my friends have credit cards which they're using to improve credit score. They mainly just use it to fill their cars up with petrol.

Is that a good idea?

Any thoughts appreciated.
I agree.
You should be able to get one at 20. You dont need to spend loads on it, but whatever you do spend on it, pay off in full each month.
It will definitely improve your credit score.
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rareform
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You shouldn't rush into getting a credit card.
At one point, I had someone asing me if how to use one, and if the payment date is "30 days from the date they bought something". This was obviously a bad idea on his part.
Read something like this post on credit cards and who they're for, it's aimed at younger people who think that getting a card to pay for things they cant afford is a good idea.
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Emma:-)
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(Original post by VaniIIa)
So I'm currently 20 years old and in full-time employment.

A few of my friends have credit cards which they're using to improve credit score. They mainly just use it to fill their cars up with petrol.

Is that a good idea?

Any thoughts appreciated.
Using one to build up your credit score, i.e. buying a few bits on it each month and paying off the balance off in full every month, is a good idea. It helps build up your credit score, especially if you didnt have much of a credit score before. Ive got one myself and mainly just put things like petrol on it.
If you were going to be stupid with it though, like buying a lot, only making the minimum repayments etc, then that would be stupid.
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julietlima3
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Also, there are some things that you can only do with a credit card, for example many car hire firms will put a holding deposit when you collect the car, and they won't accept debit cards.
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