Homepage > Money > Credit Cards
- What are credit cards?
- When can I have a credit card
- Credit scoring
- Repaying your bills
- Further support
- Help lines
Credit cards allow you to spend money when you want and let you pay back all or part at the end of each month. If you can’t afford to pay back everything that you have spent each month then the lender will charge you interest and this is how you can easily find yourself in debt.
When can I have a credit card?
When you're 18 it's legal for you to get a credit card, as long as you have a regular income. In fact, it's pretty easy; it's even easier to buy stuff with it! If you use them in the right way, credit cards can be useful if you want to buy something quick and easily:
- over the phone
- online
- abroad
Banks and building societies that provide you with a credit card will check your credit rating. Your credit rating is based on your credit history and level of income. This to make sure that you can afford to pay back the amount of money you spend and if your credit rating is bad then you can be refused a credit card.
Credit cards are designed for short term borrowing, but it's easy to find yourself in a great deal of debt very quickly. You could end up paying back much more than you originally spent on your card. Each year, many people find themselves trapped in the debt spiral, where interest payments make it impossible to reduce the credit card debt by any meaningful amount. If you are unable to meet your monthly repayments and are struggling to repay your outstanding balance, you should immediately contact the credit card company. The earlier you approach them, the more sympathetic they will be to your situation.
If you are in need of desperate help, you should contact one of the voluntary organisations for assistance like the Citizen's Advice Bureau. There are Bureau's all over Essex that you can call or visit. Alternatively contact your local Connexions Centre.
National Debt Line - 0808 808 4000
MoneyMadeClear
The MoneyMadeClear site gives advice on what kind of borrowing suits you best, credit card advice and information on credit scoring.
Youth Information
The YI site has a good article on the dangers of buying things on credit.
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