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AIBU?

Am I or is the bank?

24 replies

pinkbegonia · 27/08/2015 22:12

DS1 is off to Uni very soon. He went into the bank, one that DH & I have used for 20+ years, to change his account to a student one.

He had a brief chat with a staff member over the counter and she gave him some information and some leaflets and advised him to have a read, decide if he wanted a CC and to make a proper appointment.

We looked at the information (deciding whether a different bank might have better offers) explained why a CC was not a good idea and then DS went to the appointment.

He came out and has now been issued with a CC. He explained that he didn't want one but the advisor told him he should, that in a few years he might apply and not be successful and that he might need it for emergencies.

AIBU to thank banks should not offer CCs to students with no income or am I over reacting?

OP posts:

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NealCaffreysHat · 27/08/2015 22:16

The bank will have targets to hit so they will be encouraged to issue them. If your ds really doesn't want one get him to cut it up now and not use. Alternatively it could be useful to build up a credit rating for the future by making one smallish purchase a month on and paying it off in full. Also they do have advantages for largish purchases due to the added insurance they come with.

overthemill · 27/08/2015 22:16

Well it's not ideal but he could give it to you and you could hide it. It's true it's useful down the line. Or he could complain to the bank and then the ombudsman. I had a credit card as a student and never used it. But I also saved money each term and I had a job 2 days a week and got a mortgage a year later. Self discipline is a useful skill. But it was A long time ago.

JustOneMinuteAtATime · 27/08/2015 22:17

Students usually get a really low limit to start building a credit file. It's based on their student finance income.

That said, banks are really hot on pressurised selling at the moment, so if he said he didn't want one you should return it and complain.

QuiteLikely5 · 27/08/2015 22:19

I think you are over reacting. If banks didn't give credit to students there would be an outcry.

Damned if you do..........

pinkbegonia · 27/08/2015 22:20

Hmm, maybe I'm over reacting .
DS says he won't activate it so it won't be in use.
It seems unethical to promote something that he has little chance of paying off.
He does work part time but the credit limit for this card is £1K which is an awful lot of hours at Tescos.

OP posts:

Unhappyuser · 27/08/2015 22:20

Surely he's an adult?

UrethraFranklin1 · 27/08/2015 22:21

She should return another adults credit card and complain? With what standing, his mammy said he couldn't have one?
He might have got the hard sell but he signed the dotted line for the card, its his own responsibility.

ilovesooty · 27/08/2015 22:21

If he doesn't want it surely he can return it to the bank?

He's going to university and is surely old enough to manage his own financial decisions?

pinkbegonia · 27/08/2015 22:28

He's just leaving home, it's a big learning curve for him; living independently, managing his finances & all that entails. We don't intend to get over involved I was just interested in other people's opinions.

I couldn't see that issuing a credit card for a student with a tiny income can ever be a good thing, however I realise that getting a decent credit rating just might be.

OP posts:

Topseyt · 27/08/2015 22:39

He is going to university, so he is presumably over 18, and officially an adult. Therefore, having the credit card or not is officially his decision, not yours.

You can't really micro-manage his finances for him, although I guess you may be supporting him financially to some extent for some time to come.

I had a credit card as a student, many years ago now. It had a low limit, and I kept it purely for emergencies because my course included a year abroad, which I was anxious about.

£1,000 seems rather a high limit for someone on a student finance package (will he be on a student loan?). Not sure whether or not there is a minimum limit, but he could ask, and ask for the the card limit to be reduced to that.

My DD1 is 20 and a uni student. She is just about to go on a year abroad because she is studying French and Italian. We help her a bit where we can, but largely we leave her to manage her own finances, which she does fairly well. I don't believe she has a credit card, and have a feeling she would not be comfortable with one. I couldn't stop her if she did want one though, and she is a sensible girl too.

NealCaffreysHat · 27/08/2015 22:40

If he was good at budgeting he could buy his food shop on it then pay it off in full and build his credit for later in life. If he I like I was at that age he could blow it in the first term on beer all his decision though. Cut it or keep it. I did hear a good tip once about freezing your card in a block of ice in the freezer which gave you time to think before you used it.

LemonySmithit · 27/08/2015 22:41

This reply has been deleted

Message withdrawn at poster's request.

LimitedSedition · 27/08/2015 22:50

I wish my mum had confiscated the credit card HSBC gave me with my student account...

NadiaWadia · 28/08/2015 01:36

I think on many student bank accounts a credit card is offered as standard - it's part of the package. DD had one at uni. She didn't even activate it for the first year, they then asked her if she wanted to continue with it. I told her it might be a good idea to use it occasionally to help her credit rating, and also as a back up card in case her debit card got lost/damaged and she was stranded. So she did use it 3-4 times, paying the full amount back at the end of the month each time.

If you think your DS might not have the will-power, you could persuade him to cut it up, or leave it at home when he goes off to uni, so he's not tempted?

Postchildrenpregranny · 28/08/2015 01:48

Neither of my DDs (29 and 25)has or has ever had a CC. They manage perfectly well on relatively small incomes without. They can be very tempting
Both are in the process of buying property and it has not affected their credit ratings

Want2bSupermum · 28/08/2015 01:49

I don't think you are over reacting. If your son said he didn't want a CC then the bank should not have issued him with one. If this is what happened your son should complain to the bank.

As a student I assume he does not have an income. If this is the case IMO it is extremely wrong of any bank to issue a credit card to anyone with zero income. I would have thought he would need a guarantor. Banks here in the US are now not issuing credit cards to SAHP's or students without an income and at first everyone was up in arms about it. It makes perfect sense to me that someone with no income shouldn't be able to borrow money because they have no way of repaying it. A spouse is legally obligated for debts incurred during their marriage so having them as a guarantor doesn't change anything. Credit cards can wait until graduates have a job with an income.

Lweji · 28/08/2015 01:51

He doesn't have to use it and he doesn't have to use it for credit if he doesn't want to.
He can pay for stuff with it and pay the balance immediately. It's not much different from having an authorised overdraft. You don't have to go into it.

It is good to have in an emergency, though. I used mine when exh cleared the joint account and paid in full with the following paycheck.

You shouldn't have to keep it, but you know him best and himself.

maddening · 28/08/2015 08:16

it is good for emergencies and good to start building up a credit rating - if he is sensible - so you could hold it for him - buy his train tickets and pay his mobile bill only for example and pay it off in full every time and he will have a sparkling credit rating when he leaves uni

londonrach · 28/08/2015 08:20

Tbh its your ds as an adult decision re the cc. Im sure you as his parents have taught him about money. Hope he enjoys his uni op x

unlucky83 · 28/08/2015 08:43

I would be tempted to activate it and keep it - if he can't be trusted with it keep it at home.
I have had one for 30 years - apart from once or twice paid off in full every month. They are incredibly handy - for big purchases (with the extra protection) and also for use online (unless crazy charges are added on) - if they get my card details the limit is the max they can get away with, if you lose your debit card and for building up a credit rating.
My dad never had a mortgage and doesn't use cards - never had any debts, money in the bank. Found out he couldn't act as a guarantor for a mortgage because of his credit rating being too low...
The reason I would keep it is in the future they might be more difficult about giving him one - I was shocked to be told a couple of years ago that as I don't earn a lot of money (mainly a SAHM), even though I have money in the bank and a great record at paying one off and no debts (own house outright in my name) I wouldn't be able to get one now...

redexpat · 28/08/2015 09:16

I had the same happen to me when I started uni. The advisor actually put her hand on mine, in a non harrassment kind of way, and said you dont have to use it, but if you have an emergency then you'll have options.

It dpends on your DS' will power. I never saw the need to use it, so it stayed in my drawer with my passport etc. Would he do that? Or would he be buying rounds of drinks on it?

overthemill · 28/08/2015 21:47

I don't think you are overreacting and I would worry massively if dis had a credit card but not if ds1 did! And helping him get info and advice isn't micro managing. But he does have to learn!

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ILiveOnABuildsite · 28/08/2015 21:55

Personally I think it's a good idea. I'm 28 years old now and I've never had a cc, now even if I wanted one no bank would issue me one, I have no credit rating whatsoever. I can't even get a store card! I think you need to teach him how to use responsibly and explain to him the use of building a good credit rating and how to go about doing that.

TheExMotherInLaw · 28/08/2015 22:15

It's worth using a credit card for something like a direct debit for a phone contract, that is set up once, to come out monthly, then paid in full by dd from the bank account, so it shows up on his credit rating

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