Student Cards Information Library

STUDENT CREDIT CARDS

Credit cards specially designed for students – see information below.

What is a Student Credit Card?

When you are a student, income might not be very regular and applying for a credit card might be very hard – the mainstream lenders generally view a student as a risky customer. Many card companies won't even look twice at the application form before rejecting it.

With part-time jobs the only possibility in between studies and social life, many students can find it hard to manage their budget and there are often periods where there just doesn't seem to be enough money to pay for the basics: food, study material, the rent – let alone social activity!

Being able to access extra funds at times like these is a great relief, especially if an unexpected cost comes along to really complicate matters. A student credit card is a solution for many students nowadays, with a capped credit limit and low income minimum.

Are there any Special Features?

Most student credit cards carry features which specially appeal to students: masses of discounts for a range of brands and if you pay off your balance on time each month you can get interest free periods on purchases.

Check what is offered when you browse for a deal – each card carries varying features which might be appealing.

Where can I get a Student Credit Card?

Student credit cards are offered by many of the main banks and building societies (such as RBS and Natwest) but you can also find specialist companies which offer them too. The easiest way to find the right card is by shopping – looking around on the internet and comparing offers.

This gives you time to weigh up the pros and cons of each one without pressure and no 'sales speak' from a bank representative! You can also apply online – if you find a card which suits you on Bad Credit Good Solutions you can apply using the blue 'Apply' button.

What about Existing Debts?

As a student right now, you are normally required to borrow money in order to study at all – the Government no longer hands out student grants to all students. Nowadays, only people with special dispensation can gain special grants – but these have to be applied for first and many are rejected.

Therefore, most students now take a student loan, meaning that they leave university with a debt of up to around £15,000. For this reason, it might seem a bit risky to take a credit card as it could build up your debts, making it harder to recover financially after your studies are complete.

However, if you view your student credit card as a security for use only in emergencies then you might find it a great relief.

What are the Advantages?

Student credit cards are great as a source of funds when you need them. Most students encounter financial hardship during their years of study and being able to access credit could come as a great relief. On our site we even list a Graduate card – designed for people who have just left university and are likely to have a weak credit rating.

Student credit cards generally have a relatively low credit limit which is good in order to reign in your spending or overuse of the card.

Are there any Disadvantages?

Getting any form of credit product or loan can carry a risk of falling into debt or being unable to control spending habits. Therefore, it is wise to be especially careful – will you be tempted to pay for everything with the card? Will you end up paying for more than you can afford?

Before you take a student credit card (or any form of loan/credit card), make sure you have considered all of your options and if necessary discuss these with an independent financial advisor.

Students who budget and plan their finances could be in with a better chance of coping with their cash flow during tough periods.