Hi there, I have just finished school and about to commence Uni. Is it worth me getting a credit card to help with moving out or should I get a small loan?
Hi William, exciting time for you.
I would suggest looking at a credit card but only applying for a small limit. Being able to access funds through the credit card will be helpful however I would recommend developing some key disciplines around how to use it.
1. Do your research on sites such as Mozo and Rate City and make sure you understand the terms of the cards, interest rates and interest free periods.
2. As best as you can, pay off the balance each month or within the interest free period and try not to get caught up with paying interest.
3. Set yourself the challenge of not applying for an increase in the card limit. Even if you start working and making some money save up and pay for the things you would like when you have the money. This type of discipline will serve you well as time goes by.
Most importantly, make sure you to make the repayments on time. It is very difficult to recover from a bad credit rating at a young age.
Congrats on getting into Uni. Can I ask what the reason is for moving? Is this due to location v home? If you intend to get a credit facility I would go with a very small credit card. That way this can be paid of as quick as possible especially if you don't use the limit. Do you have a part time or full time job to allow you to pay this debt off?
I would suggest if possible staying at home for as long as possible or perhaps moving in with mates or house sharing, this would involve minimum moving costs.