Students & Credit Cards

TheEastWind

Hi all,

This is my first post so if it belongs elsewhere on the forum or ought to be reformatted, please do educate me!

I’m halfway through university, and the release of the Apple Card (I’m a self declared Apple fanboy) has got me interested in a credit card. While shopping around for the best options, I’ve found mixed information on what to declare as my yearly income.

Naturally not the student loan: I never see a penny of that money! But the maintenance loan counts for the majority of my disposable income, so should I declare that? I also receive £1000 a year from my late father’s pension, which I suspect I should include?

To make things more complicated I’m starting a placement this year, for which I receive several thousand pounds as a bursary. Student finance do not count this as ‘pay’ (it isn’t factored into my maintenance loan calculations) but would credit card companies? I also won’t be receiving this bursary a year from now (and haven’t received it yet, I believe it’s paid monthly from September) so maybe I shouldn’t include it at all.

Thanks in advance for your responses,

TEW

Chino

TheEastWind wrote: »

I’m halfway through university, and the release of the Apple Card (I’m a self declared Apple fanboy) has got me interested in a credit card.

All of which suggests that, as you've managed so far without one and have no immediate need for one, you'd be better off waiting until you're in full time employment before applying for a card.

System

Hi,

Firstly this is indeed the correct place for your post.

As for the Apple card. It's not released or even announced for the UK market yet. But when it is, feel free to apply. I suspect they won't take people with no credit history but you never know.

As for your income. Just put down the "best truth" I would include your spendable loan and maybe even your bursary. At the end of the day, it doesn't matter if your not super accurate as long as you are not outright lying. It's a credit card application not HMRC!

It could well be a year until the Apple card is released in the UK so you might want to grab a sub-prime card now and start building a nice healthy credit file of spending a little and paying off in full by direct debit each month. That way you are more likely to get the card you really want down the line.

System

Chino wrote: »

All of which suggests that, as you've managed so far without one and have no immediate need for one, you'd be better off waiting until you're in full time employment before applying for a card.

Why?
Why wait to build a good credit history?
Quite the opposite advice I would say the best time to sensibly start building relationships with lenders is exactly when there is "no immediate need". That way you aren't getting credit for the wrong reasons. Assuming good practise of not paying interest then there is no time like the present. After all, long standing accounts are viewed favourable so start building a credit file asap.

To wait till there is an "immediate need" before grasping for credit seems bad advice.

[Deleted User]

Getting a credit card "just because Apple has released one" isn't a reason to get one.

System

!!! wrote: »

Getting a credit card "just because Apple has released one" isn't a reason to get one.

Is the fact Apple released a credit card reason to NOT get a (any) credit card...?

The OP clearly said "While shopping around for the best options".
So The Apple CC peaked their interest and now they are looking around the market doing their due diligence.
Seems like good sensible practice to me.

TheEastWind

beany_bot wrote: »

The OP clearly said "While shopping around for the best options".

So The Apple CC peaked their interest and now they are looking around the market doing their due diligence.

This is exactly it!

Thanks for the advice, it is all well received! Any suggestions for good starting cards? I’m looking at Aqua and Vanquis at the moment, but are there any others I should be looking at (or should be avoiding!)?

[Deleted User]

Ah right - so because Apple released one it "inspired you" to look around and get one?
Still doesn't make sense....

Anyways,
If this is your first card then yes look at sub-prime lenders (Vanquis, Capital One, Aqua etc.) and ask your own bank.
Use a couple of eligibility checkers too and see what you may be eligible for.

Use the card for your usual monthly spends (ignore any CRA drivel about utilisation) and pay the balance back in full after each statement.

Repeat month on month and you will build a better credit history in-time to get the much sought-after Apple card when (if) it releases in the UK :beer:

System

TheEastWind wrote: »

This is exactly it!

Thanks for the advice, it is all well received! Any suggestions for good starting cards? I’m looking at Aqua and Vanquis at the moment, but are there any others I should be looking at (or should be avoiding!)?

If your goal is to build a credit history then all cards are much of a much. Aqua do have the benefit of giving you (some) cashback. Personally I would check Aqua reward card eligibility checker on their site (soft search). Then see what they say. Just stick some groceries on it every month and pay in full by direct debit. Keep doing this.

[Deleted User]

beany_bot wrote: »

As for your income. Just put down the "best truth" I would include your spendable loan and maybe even your bursary. At the end of the day, it doesn't matter if your not super accurate as long as you are not outright lying. It's a credit card application not HMRC!

CIFAS and National Hunter would beg to differ here methinks....

Terry_Towelling

On the subject of income, I don't really think you should be declaring any sort of borrowed cash as income. I accept maintenance loans are a bit different in the way you get them and how you have to pay them back but surely the principle of stating borrowed cash as income is wrong.

If I have a credit card and take a cash advance of £500 every month should I include that as part of my income? Clearly not.

Should you have a credit card? Well, if you know how they work, how to pay them, how to get the best usage out of their features and always pay in full, then fine, go for it, but please don't go for a card simply on the basis that you like Apple products. Go for a card on the basis of what it offers you, or how cheap it is (if you need to revolve credit - which you should avoid) for its utility, and how it can help you defer your daily living costs for a few weeks.

Clearly, when starting out, it is hard to be too picky with cards and you often have to take what you can get but don't go mad with it, don't view 'available credit' as 'savings', always pay in full and keep it safe and away from others who may want to commit fraud using your line of credit.

Try to avoid getting sucked in by badge snobbery and marketing hype.