Advice on 'student' credit cards

Funtime_2

Hi chaps,

I was wondering if I could ask some advice on my current situation, I'll try and be as brief and concise as possible.

Basically I'm interested in getting a credit card (which I would pay off in full monthly via direct debit), mostly for the added security on large purchases but any cashback etc. would obviously not be unwelcome. I am however a little confused as to where I stand as I've read the Best Cashback Credit Cards article and I'm not sure any of those apply to my situation.

As of January I have been studying on a funded PhD course, through which I get an annual tax-free stipend/living allowance of around £16k. Due to previous years of frugal student living and a brief stint of JSA, this is farrr more than I need to live on so I'm shoving a third of that straight into an ISA i.e. even after unforeseen circumstances there should be more than enough backup cash for full repayment.

I'm just wondering which credit cards I would be eligible to apply for; would my stipend count as income, considering my student status? I wouldn't be able to add any employers details on the app. forms as I'm not technically employed.
Would it only be specifically labelled 'student cards' I can apply for? If so, that seems a bit annoying, as they have relatively few if any perks and pretty low credit limits (I was planning on using the credit card for most purchases).

Anyway, ignoring the massive student loan debt and obligatory years of living from student overdraft, I pretty new to all this credit lark, so would appreciate any feedback.

Cheers

[Deleted User]

Have you had one before? How's your credit report? (good/bad/non-existent?), do you have any debt or existing credit?

Your bank is likley to offer you a credit card as part of your student account - if you want to go elsewhere check with the credit card company before applying online to see if your stipend will be considered as income, or if they automatically don't give credit to students - a search may still be done, and if you do many of these in a short space of time, it might put other lenders/credit providers off.

I know Capitol One give credit cards to PhD students - whith very high limits too (in comparison to income).

devildog

Sorry I cannot specifically answer your questions but I would say that it would be a good idea to have one. DD is just completing her first year at uni (without using her overdraft ) and recently been issued with a Visa card-so ok no perks with it but by having and using it, it enables her to start building up her credit rating for the future.
Initially it set up to pay off the minimum amount each month(by DD) but having talked through the pros and cons with her she has now elected to pay the full amount each month.
I guess you will have to shop around a bit but even if you cannot get one with decent perks it may still be worth getting a basic one to start building up a credit history.

Stubert

I got a Student Barclaycard between my third and fourth year. It only has/had (I haven't bothered to get better one as I only graduated a year ago and nearly always pay off in full) a limit of £600 but thats all I needed as I was just using it on my semester abroad.

Evidently my creditscore must have been ok, I had a creditcard linked to my student account and always paid that off in full.

Mankysteve

Don't do it its a very bad idea. Been there done it Bloody difficult to pay off and being a student its difficult to be a credit card tart.

The_One_Who

Mankysteve wrote: »

Don't do it its a very bad idea. Been there done it Bloody difficult to pay off and being a student its difficult to be a credit card tart.

It's difficult to be a 'tart', but a credit card is not a bad idea in and of itself. They are exceptionally useful, as long as you're smart about it. The OP isn't really a 'student' in that they are getting an income of about £16,000 per year. However, that chances are that they won't be allowed part-time work on top of this even if they wanted/needed to top it up.

In my experience (rather limited and based on friends' experiences) banks can be a bit hit and miss with regards to even understanding what a PhD student is. Some can be iffy about keeping a student bank account open for you, for example.

OP, I have no idea what credit cards you would be eligible for, sorry. You might as well look in to the non-student ones.

Funtime_2

Thanks for the input guys. I'm definitely going to get one as it makes sense in terms of insurance/security (and also guaranteeing hotel bookings etc) and seeing as I hardly buy anything anyway I strongly doubt I would ever let myself get into trouble.

As it stands I haven't ever checked any of my credit scores although I had planned to do that at some point in the next year. As for pre-existing debt, I have a large student loan debt but that shouldn't affect anything there, I had a Burton's storecard, used it once but paid it off in full, and other than that I'm pretty clean credit-wise. Phone bill always paid in full via direct debit etc.

I'll start getting in touch with individual providers then, from the small-print I've managed to sift through it looks like I might not be eligible for most of the cashback cards.

Please feel free to add to this thread if you have any other info or personal experience in the world of funded-student credit!

Danstar_2

I have a student credit card, went unused for a few months until my dad suggested rather than pay an allowance into my bank every month I used that and he pays off in full everymonth so I get a good credit rating.

No harm in having it, limit is only £500 so not going go do anything stupid. Suppose the idea of insurance on purchases etc. is a good thing too. And if you get scammed it won't be YOUR money.