To get a credit card for 21yo?!

[Blueeberry]

Is it possible? DD is heading off to uni in September and would like a low limit credit card. She’s sensible - would be useful for emergencies but primarily would like to use instead of her debit card and then just pay it off at the end of each month. I think it would be a useful way of keeping track of her spending, alongside building her credit score & earning air miles (she’s a frequent traveller). Having travel insurance included would also be a huge bonus and save money in the long run.

Her earnings are around £8k/year from her part time job alongside her student loan and a £5k course specific bursary. Is it a possibility at all or am I looking for some sort of unicorn card?

Have a re-read of the thread. The only one with comprehension issues appears to be you.

#don'tbesorude

She'll probably be able to get one herself even if she earns £8K, albeit with a lower limit. She can then use it for emergencies or however she likes, and you won't need to be involved.
I would definitely not have wanted a parent to be able to see all my transactions at the age of 21!

I agree. Looks like the OP is implying that THE OP wants to keep track of her daughters spending. Sure the daughter can keep.track of her spending via a debit card.

But in general, just very strange for a parent to be getting so involved in a 21yo finances.

The whole thing implies OP is doing it.

Which is exactly what I was saying. I haven’t got a clue what she spends and have no intention of ‘keeping track’! I meant that having to look at a credit card bill every month would mean that she is more conscious of her spending, rather than having it mindlessly come out of her current account.

You’d be wrong..!

This. If she's not able to get and use her own credit card she shouldn't have one arranged for her. I really dont understand the question.

But your question was should you get it for her. She should get it herself if she wants it.

The extra protection is part of the draw for DD. At the moment she typically makes any ‘bigger’ online purchases like flights, more expensive clothing etc on my credit card and transfers me the money

If she mindlessly spends from her current account without keeping track of her spending she it would suggest she is not financially aware enough for a credit card.

She’s 21 & has very little banking experience like most others her age. I’m simply trying to help her out - she’s as independent as they come so seeking advice from me is very much a rarity

When I went off to university in 1977 my father offered me a credit card, Access in those days. I refused.

She certainly keeps track, has a good savings pot etc and is never stuck for money but I do personally believe that having to manually transfer at the end of the month would build better awareness. It certainly does for me.

Nowhere did OP say they’d get the card in their name for their DD, they also didn’t say they’d be keeping track of her spending

No. I've got a friend like this that warns her DC off of doing sensible financial & other things because she doesn't understand them herself.

Again, I have got a clue about her transactions! Any bank statements that arrive for her go straight into her room. None of my business at her age

My grandchildren have had bank accounts since they were 11. The oldest two are at university no way would anybody need to organise their banking.

Why can’t she review her current account statement every month to keep track of her spending? Or use an app like Snoop.

Good for them! DD has only ever had a basic current + savings account so is just looking for a bit of advice. It’s hardly the end of the world considering many fully fledged adults end up consulting financial advisers

She could do, yes. Feels like a waste of Avios points etc though to only spend on a debit card

I think it is pretty inaccurate to say most 21 year olds have very little banking experience. At 21 she will be a mature student, a lot of her peers will be leaving uni having navigated their finances successfully for the last 3 years.

It's pretty irrelevant anyway. You have been advised that a credit card for a 21 year old on a part time wage isn't a "unicorn" and is pretty par for the course. If she wants one and feels it will benefit her then let her get on and apply for one. Money Saving Expert is a great place to search for an appropriate card and let's you know the likelihood of being accepted before you apply.

Once more, you asked if you should GET it for her. Not give her advice but get it for her. No, she should be perfectly capable of getting it herself if she wants one.

Neobanks like Monzo and Revolut are a great way to track spending/savings, they also offer chargeback should goods be faulty.

Ds is almost 23, he got a credit card when he got his grad job. It is paid off automatically in full every month so he can build his credit score along with the protection for anything he buys over £100.

We have had the same automatic payment on the credit card we have had for nearly 30 years. Never not paid the whole balance. We get benefits from the credit card, same with our bank account, we make money from both, they don't make any interest money from us.

As long as she realises that if she spends £1000 and pays back £950 and leaves £50 she gets charged interest on the whole £1000 not just the £50 remaining. Martin Lewis video confirming this.

https://www.youtube.com/shorts/RFBuCs7ekQ4

A credit card will not make it easier to keep track of spending. And I say this as someone who puts 99% of her monthly spending on credit card. It takes additional effort to stick to budgets and have the cash in the right place to pay it each month.

At a societal level, it’s statistically more likely that the credit card will be a gateway into a lifelong consumer debt cycle than it will improve her financial habits.

I’d suggest she spends some time researching, maybe listening to the Financielle podcast which I very much rate on finance topics, and then deciding for herself what she wants to do.