Credit Card Eligibility Calculator for Student

pvr

Hello, my daughter is applying for her first ever credit card. She is using the mse Credit Card Eligibility Calculator. She is a full time student on the first year of her degree course. The only income she has is from her maintenance loan. She has no other income. In the finances section of the Credit Card Eligibility Calculator should she put her maintenance loan amount or zero income? I understand some card issuers accept maintenance loan but some don't. Thanks

adamp87

If she doesn’t she’ll have £0.00 income coming in so the application would surely be rejected outright?

If she’s not working I’d say she’ll find it very difficult in the current climate. 

Her best bet would be her bank, a few offer student credit cards (I know HSBC do).

I don’t mean to be abrupt but if she has no other income, I’d wonder if a credit card at the moment is a good idea. 

jay1804

I don't think credit card providers count student loans as income anymore, if they ever did. 

pvr

adamp87 said:

Her best bet would be her bank, a few offer student credit cards (I know HSBC do).

I don’t mean to be abrupt but if she has no other income, I’d wonder if a credit card at the moment is a good idea. 

Her bank account is with the Halifax. Have looked into it but the Halifax don't do a student credit card from we could see.

The main point of her getting a credit card is to build her credit score.

jay1804

pvr said:

adamp87 said:

Her best bet would be her bank, a few offer student credit cards (I know HSBC do).

I don’t mean to be abrupt but if she has no other income, I’d wonder if a credit card at the moment is a good idea. 

Her bank account is with the Halifax. Have looked into it but the Halifax don't do a student credit card from we could see.

The main point of her getting a credit card is to build her credit score.

She will have plenty time to do that. If she wants credit to build her credit score history then she will need a job first. In this current climate is might be difficult. Once she has an income she may be eligible for a credit card. In the meantime, if she has a student overdraft, it's best for her not to use it, as using it would look negative to lenders.

knightfox

I would look at or try Natwest using their checker

[Deleted User]

Can't she find a student account with a CC? Most students will get their first CC with their own bank or with a student bank account. She can build a credit history with a pay monthly mobile contract and things like that if she can't get a CC right away - not like she needs credit immediately anyway, she would have plenty of time over the next few years after graduation

MalMonroe

Some years ago my daughter got a credit card when she started uni, it was offered when she got her student current account. Her student loan was taken into account as income. She still has that very credit card and the limit is now something sky high. Which is fine, as so is her salary and common sense.

I went to full time uni after she did - mature of course - and was also offered a credit card with my new student current account. My student loan was also accepted as my income.

However, I do agree with jay1804. There is plenty of time for your daughter to build up her credit history. And some students get themselves in a big pickle with credit cards. 

Lenders are being more cautious now though and if your daughter can manage nicely without a credit card I'd say she's better off. There's nothing worse than graduating and then having a whole load of debt to shift. 

You might be interested in this, especially the part that says 'credit cards aren't as cool as they sound'. https://www.moneysavingexpert.com/student-money/