If you are a young person you may find it difficult to obtain credit because you have no credit history from which credit providers such as banks, building societies and credit card issuers can judge your likelihood to repay your debt.

As such, it is may be wise to take out a credit card to establish a record at a credit bureaus such as Experian or Callcredit, businesses which hold a record of your credit agreements which allow lenders them to assess your credit worthiness.

Having said this, often the most attractive promotional rates on balance transfers and 0% purchases are unavailable to young people for this very reason. You should therefore consider cards suited to the ‘thin file’ (low or no credit history) customers such as a student credit card.

Once you have a credit card it is wise to spend a little each month over the course of a year and repay in full every month. This lets the credit bureaus you are a responsible individual capable or repaying your debts.

Once you have done this, you should not only qualify for the most attractive credit cards but also lower rates on, loans, car finance and even mortgages, leading to substantial interest savings later in life.