Declaring student funds as income

Smallest_Giants

Hello. I'm a student with a bursary and loan, and I'm thinking about getting a credit card to build credit. When checking eligibility and eventually applying for one, can I declare the student loan and bursary as income? Thanks.

bris

No, neither is income. A student loan is the opposite, its a debt and a Bursary is a one off payment not regular income.

Smallest_Giants

Thanks very much for the reply. That makes sense. But, considering that for the past 2 years, my expenses have consistently been well under the total I receive (and that I'm generally frugal), are there strong reasons (eg. legal) why I shouldn't? Or is it ill-advised given that it might turn up when a bank looks into my finances?

Btw, both the bursary and loan are actually paid into my account monthly.

eskbanker

Making false declarations when applying for regulated financial products is rarely a recipe for success....

Smallest_Giants

I'm new to this and not trying to make false declarations. I have a steady inflow of money surplus to my needs and I'm looking for advice on what I can do with it. Also, people and organisations use "debt" in all sorts of ways within the bounds of the law, so it's not inconceivable that this "income" which I may never have to pay back could actually be declared as such.

Vinknut

It's still not income.
If you want a credit card, there are a number of student credit cards you can get, and that's made easier if you have a student bank account already.  HSBC, Natwest, RBS and TSB all offer a student credit card if you have a student account with them.  It's a low limit and high-ish APR (obviously), but still allows you to build up a history.

Smallest_Giants

Thanks for the suggestions! Will definitely be looking into it.

Smallest_Giants

I think I'll get a student account and build credit by spending from arranged overdrafts at 0%, instead of getting a student credit card with high APR. Does this make sense?

[Deleted User]

No!

You won't build credit by living in an overdraft, if anything it will harm your rating as it looks like you're living beyond your means. As above, get a student account and associated student credit card, buy your food on it and pay off in every month, get a basic phone contract and just enjoy university, then you'll leave with 3 years of good credit history ready for the working world.

Vinknut

Smallest_Giants said:

I think I'll get a student account and build credit by spending from arranged overdrafts at 0%, instead of getting a student credit card with high APR. Does this make sense?

To build credit;
1. Get a credit card, pay it off, in full, every month (so APR is irrelevant)
2. Stay out of your overdraft

jay1804

Smallest_Giants said:

Hello. I'm a student with a bursary and loan, and I'm thinking about getting a credit card to build credit. When checking eligibility and eventually applying for one, can I declare the student loan and bursary as income? Thanks.

Until you get an income, you won't be able to get a credit card. Try and get a part time job earning more that £3000 annually/ £250 monthly, then you may be eligible for a Aqua, Barclaycard, Capital or Vanquis. And definitely, don't use an overdraft, it looks like you have no money.