Student Credit Cards

saver2006

what are the best credit cards for students? is it possible to get a credit card with a bank you don't have an account with?

nige

First you should check if you can get a standard credit card with the bank you have held your current account with the longest. I have looked around a little and Barclay's seem to offer the best student card (but I may have missed a few), however there is lower interest on a standard credit card as student ones are given to people who have no credit rating and are therefore higher risk. If you have held an account with a bank for a few years then you might have a high enough credit rating for it not to matter that you do not have a constant income and you might be offered a normal credit card anyway.

DrFluffy

My advice: Only get a credit card to boost your credit history...

As a student, don't get one to spend on if you know you are a bad money manager.

Read Martins articles on here re: cards and also visit moneysupermarket.com to get a list of the 'hottest' current offers...

si1503

DrFluffy wrote:

My advice: Only get a credit card to boost your credit history...

How does this work exactly?

It is to my knowledge that too many credit cards can lower your overall available credit, hence the fewer credit cards you hold, the better in terms of credit ratings/applications.

Are you saying that there are advantages to taking out a credit card and not using it?

skiddy2k

si1503 wrote:

How does this work exactly?

It is to my knowledge that too many credit cards can lower your overall available credit, hence the fewer credit cards you hold, the better in terms of credit ratings/applications.

Are you saying that there are advantages to taking out a credit card and not using it?

yes, too many credit cards lower your credit rating. If your a student and dont have many expences, I think one should do, dont bother with more, it'll just mean more paperwork. There is neglagible advantade of taking a credit card and not using it, you get a higher credit rating if you use your credit card, doesnt have to be alot of money you spend, just simple things like weekly shopping or something like that, just make sure you can afford and remember to pay off your credit card bill every month, or else you'r in trouble.

muddyfox470

I have a credit card for two reasons:

To help with my credit score
and
To purchase items on the net or in shops (below my limit) so I get extra protection, and it has already come in handy, a company went bust after spending > £100 with them, with a debit card (maestro etc) I wouldnt have been covered, but as I had a CC I was able to claim my money back (took about 2-3 months though)

I pay off my credit card in full whenever, so I don't get any extra charges etc. I have set up an automatic Direct Debit just incase I forget to manually pay off the card in full.

If you want a credit card, try to get one that earns you points that you will find useful, i.e. one for the supermarket where you shop most often (may earn clubcard points or similar) - you get the idea

Balance transfers and interest free are really bad imo for students as most will get into a rut into thinking 'i'll pay it off later' and will rack up charges

Ian

PS. If you apply for too much credit in such a short space of time that will lower your credit rating, or mean the companies are less willing to lend you money as they may think you are going on a massive spending binge without ever wanting to pay it off. If you just have one or two cards and you use them regularly (and pay them off on time) it is unlikely that they will lowere your credit rating.