I'm an 18 year old applying for my first credit card - what are my choices?

You may experience difficulties in obtaining a credit card if you are 18 years old and are seeking to get your first credit card, particularly if you apply for one of the market leading deals.

Credit card companies rely on what is known as credit scoring to determine the customers they want. When you apply for a credit card, the provider will undertake a credit check and compile a score for you based on information supplied in the application and on your credit report. Credit reference agencies Experian, Equifax or Callcredit provide credit reports which contain a history of financial activity in the past six years and show if payments were on time or late. Each credit application is logged on your report.

People who have already borrowed money and have made repayments on time will get a decent credit score as they have proved they can manage debt. By contrast, an 18 year old who has never had any debt is likely to have a much lower score because there is no previous borrowing history for the card company to be able to determine their reliability as a borrower.

Fortunately there are a few providers who are interested in young people who are new to credit. The cards listed on this page are suitable for people aged 18 or over, provided they earning at least £10,000 and are listed on the electoral roll.

You will probably be charged a higher interest rate than other borrowers, so the key is not to build up debt but instead pay it off in full at the end of every month. A track record of regular on time repayments will help strengthen your credit rating which in time should enable you to switch to a more competitive deal.