Can't Get a Credit Card

Tpex

Tpex

Teh Cyber Ninja
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Hey People
I'm a 19 year old student living with his parents, I work part time as a bartender which I pay my varsity fees with and it gives me some spending money, I easily make enough to meet the requirements of yearly and monthly income that banks state you must earn to qualify for a credit card. Since I earn cash I would rather have the freedom to buy now and pay everything off at the end of the month (online shopping) and plus add a few debit orders on there as well, as opposed to opening a standard debit account and having to put money in to spend it.
Now the banks won't give me a card (becuase they say I am part time) even though according to the government since I work more then 24 hours a month I am a full time employee (I pay UIF)
So what are my options?
 
Do you really think it's wise to get a credit card when your income is not guaranteed?

Don't spend money that you don't have, that's how people end up with debt issues..
 
Try different banks dude, absa, std bank, virgin money, nedbank etc

Go open a clothing account if you can. Discovery also offers credit card facilities. It's just a matter applying to many banks but you may fall short and perhaps it is a good thing.
 
You have to be EXTREMELY disciplined when using a credit card to pay for goods & services.
A credit card is the best way for you to get yourself in a lot of trouble.
 
not sure what bank you applied at, but try Virgin Money, or Nedbank. They are generally more lenient, even though they generally give a much lower credit limit.

Looking at your current situation, I don't think getting a credit card is a wise decision. I agree, you need to be very well disciplined to manage one responsibly. Not saying you aren't, but believe me, it is easier to swipe than you think, and if you're not very careful, you could end up living off your credit card...
 
Another option might be the Discovery Credit card, where you actually have to first deposit money into the card, and then you can spend it. Do this for a couple of months and you can then ask them to actually give you a credit limit. This will show them that you are responsible enough to manage a credit card and not a financial risk, and you will get a taste of what it's like without running the risk of bad debt.
 
I have to agree with many of the guys here Tpex. A credit card is evil incarnate! It is great to have one as a back up for emergencies etc....but many many people loose control and it can be more of a burden than anything else. I have finally paid off my credit card and it is now stays in my wallet sitting dormant. I use my debit card for everything and at the end of the month...if there is a little bit left over, I transfer that into my very sorry looking savings account.

Apply for one...as it is good to have on your credit record...but for god's sakes!!!....use it ONLY if you have absolutely no other choice!
 
A cheque card is also a possibility. Have you considered one of them? You have a cvv number and can purchase online with it. Also, it helps with your credit rating to have a cheque account.

The biggest problem with credit in SA is that you have to have debt to be able to get more credit. Debit orders will definitely help to improve your credit rating. Edgars accounts aren't to difficult to get and MTN is fairly lenient when applying for a contract with them.
That is how I managed to get the rating I have now :)
My suggestion is to try that route because as most guys here said, credit cards are THE DEVIL... :p
 
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I'm also 19, working part-time, applied for a loan, a personal loan, was granted, around R8000. I'll soon apply for a credit card and see.
 
A credit card has helped me many times in the past for unexpected expenses

Granted - I now have mountains and mountains of debt, but at least my credit rating is still A+
 
Dolby said:
A credit card has helped me many times in the past for unexpected expenses

Granted - I now have mountains and mountains of debt, but at least my credit rating is still A+
Click to expand...

Yup as well, it's nice to know when you are heavily in debt you have a good rating :D. Makes getting more and more and more money so easy :p
 
killadoob said:
Yup as well, it's nice to know when you are heavily in debt you have a good rating :D. Makes getting more and more and more money so easy :p
Click to expand...
\

I've looked at this a few times ... and can't work out if you're being sarcastic or not ;)
 
Credit cards are not difficult at all, as long as you use common sense. If you don't have guaranteed income, don't get it or if you really need it, preload the money before spending. When you do get it, don't go on spending sprees, it's just another way to pay for things with the same money so don't go out and buy all the things, buy what you normally need.
 
Tpex said:
Hey People
I'm a 19 year old student living with his parents, I work part time as a bartender which I pay my varsity fees with and it gives me some spending money, I easily make enough to meet the requirements of yearly and monthly income that banks state you must earn to qualify for a credit card. Since I earn cash I would rather have the freedom to buy now and pay everything off at the end of the month (online shopping) and plus add a few debit orders on there as well, as opposed to opening a standard debit account and having to put money in to spend it.
Now the banks won't give me a card (becuase they say I am part time) even though according to the government since I work more then 24 hours a month I am a full time employee (I pay UIF)
So what are my options?
Click to expand...


Just FYI, Paying UIF does not mean that you are full time.

What I suggest is that you get one of your parents to stand surety for the card. Having a CC is a responsibility but it will help you later on in life when you need a car or a bond. Also your employer might be able to give a letter saying that he is employing you on a regular basis, if you are paying UIF you should be getting payslips.
 
Some banks offer student credit cards. I know Absa has one with a pitiful R200 credit limit, and i think FNB also offers it. Im a student myself and I live off my credit card, I just make sure that my cheque account has more than what i owe on my credit account, its like just using the credit card instead of the cheque card to pay for things. As everyone has said, just make sure you don't go on a spending spree and somehow bull**** yourself into thinking you can pay it back somehow later at the end of the month. Also if you do manage to get one, make sure you repay in full at the end of the month instead of the minimum amount. I didn't fully understand the whole "interest free for 55 days", then a month and a bit after i started getting my statements i started getting charged for interest on my leftover owed amount. Not cool. A safer option would be to get the cheque card only as some people have said. Don't get a CC if its just for showoff, I know at 19, for a vast majority, brandishing a CC somehow pushes you up the social ladder. A few minutes of fame isn't worth the time to go to the bank to apply.

I don't think you can get yourself your own CC if you have your parents act as the source of income in case, the bank will just tell you to get your parents to issue a second card under their account.

@Spyk3r: Do cheque accounts give credit ratings? I was under the impression you need to have a credit facility in order to generate a credit history.
 
im 23 and have a Woolworths Card, Vodacom Contract and a Credit Card with a 10k limit. It is possible to get this stuff without formal employment (i am not formally employed) you just have to know how to weasel your way in.

Goodluck
 
UnUnOctium said:
Credit cards are not difficult at all, as long as you use common sense. If you don't have guaranteed income, don't get it or if you really need it, preload the money before spending. When you do get it, don't go on spending sprees, it's just another way to pay for things with the same money so don't go out and buy all the things, buy what you normally need.
Click to expand...

Unfortunately, despite the name...common sense aint all that common.
 
I've had a Discovery Credit card for 4 years now. Got it back when I was still a student on a bursary - my credit limit was about 3 times my effective monthly income. Maybe there was a communication problem when I explained my income, but anyway...

4 years down the line my income has increased about 12 fold but I have not changed my credit limit (even though I should be able to easily do so). As many people have said, a big credit limit is trouble waiting to happen. So if you intend to use it as a kind of debit-card-with-credit-card-perks, or as some kind of emergency backup, go for it.

My rule of thumb is that you should be able to bring the balance of your card back to 0 (after maxing it out) within 2 months. If not, then the credit limit is too high.

My 2 cents.
 
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