Good back-up credit card for students

Darkfiresong

I am student and currently bank with HSBC. I was effected quite badly by a recent problem they had where their cards randomly stopped working at cash machines and also when making payments. I decided to get a back-up credit card to use in case of emergencies and so started to look around on the internet.

I've recently begun to learn all about credit ratings and credit reports. I looked up my free credit report with experian and I have a "good" credit score (900+). I then did the pre-application search thingy on the barclaycard website and with moneysupermarket. I was told by barclaycard that I was not eligible for their credit cards. Moneysupermarket gave me a 9/10 chance of approval for CapitalOne Progress and Classic.

Are these the best options for me at this point in time as the APR seems a bit ridiculous? Why don't I qualify for a better card even though I've a clean credit history and have been managing a mobile phone contract and overdraft facility without any issues?

Thanks in advance for any help.

dtsazza

If you really are just using the credit card as a backup payment system, then the APR is irrelevant because you'll never pay interest. Credit cards only charge you interest for balances that you don't pay in full. Set up a direct debit from your bank account to pay the full amount each month, and your credit card becomes a way to take out a 20-50 day interest free "overdraft" when buying an item.

So in that context, the main thing is to ensure you go for a credit card that will actually accept you; and given that you likely have little or no credit history, and little or no income this will be a limited subset. Broadly speaking, the higher the interest rate, the easier the cards will be to get, so going for these "starter" cards is likely your best bet.

In response to your last paragraph - what's your income? And how long have you had the overdraft for; how big is it; and are you usually in it or not?

Darkfiresong

dtsazza wrote: »

In response to your last paragraph - what's your income? And how long have you had the overdraft for; how big is it; and are you usually in it or not?

I have had a £1000 overdraft for a little over a year. My income is around £5000 annually (including student loan) and I'm rarely overdrawn. Thanks for your help...I do appreciate it

Btw, between capital one progress and capital one classic, which is better? Also is there any advantage of granite, aqua or vanquis cards over these? Thanks again.

reclusive46

Darkfiresong wrote: »

I have had a £1000 overdraft for a little over a year. My income is around £5000 annually (including student loan) and I'm rarely overdrawn. Thanks for your help...I do appreciate it

Btw, between capital one progress and capital one classic, which is better? Also is there any advantage of granite, aqua or vanquis cards over these? Thanks again.

The advantage is your not going to get accepted for a Cap one progress or classic. With a granite, Aqua or Vanquis. You have a much higher chance.

izools

reclusive46 wrote: »

The advantage is your not going to get accepted for a Cap one progress or classic. With a granite, Aqua or Vanquis. You have a much higher chance.

That's not true. I know a lot of people who have been accepted for Progress as their first card.

OP- apply for the Capital One Progress - it has the lowest APR which continues to decrease 2% every six months. A very good starter card.

IF they decline you, look further down the chain, but not until you've tried Progress first

Let us know how you get on!

Darkfiresong

izools wrote: »

That's not true. I know a lot of people who have been accepted for Progress as their first card.

OP- apply for the Capital One Progress - it has the lowest APR which continues to decrease 2% every six months. A very good starter card.

IF they decline you, look further down the chain, but not until you've tried Progress first

Let us know how you get on!

Thanks. I actually did apply yesterday morning for Capital One Progress. I was accepted and have received my PIN today! Quick service!

czarinaB

The government utilizes subsidized student loans as a method of motivating students to get higher degrees. As of 2012, however, graduate student loans will not have their interest subsidized, which will change responsibility for paying $18.1 billion over 10 years to pupils. The deal does not change borrowing limits, but it does change what students are responsible for in the end.