Credit Card For Student Doing Work Placement

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WSBWSB Forumite
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My son is currently doing a year's work placement between his 2nd and 3rd year at university.
I am happy to be guarantor if required and he will set up to pay the balance in full each month.
I have recommended it for online purchase security, use abroad etc as opposed to his bank debit card.
I have recommended a cash back card and MSE recommends Lloyds as being the best non-Amex card.
However, on application when he has tried applying as a student and also as an employee, it states that he is not eligible.  Doesn't say why.
Must he get a student specific credit card?
Can only non-student cards have cashback?
Thanks
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  • edited 16 October 2022 at 6:59PM
    EmmiaEmmia Forumite
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    edited 16 October 2022 at 6:59PM
    Does he actually need a credit card?  Most bank debit cards are fine to use abroad and online. But if he's a student, is one offered by his current bank (where he has his student account).

    He's probably being declined as he's (presumably) young (20ish), and probably has a very thin credit file. Is he on the electoral roll at the address he's applying with?

    If you want him to have one to use, and you're willing to guarantee his spending you could make him an additional cardholder on one of yours?
  • WSBWSB Forumite
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    I am recommending a credit card to him, so he gets best exchange rates when travelling. Insurance on items bought both home and abroad.  Extra security rather than money coming direct from bank. And hopefully cash back.
    Not to get himself in debt with.
    He's a sensible lad and as such, I'm happy to be guarantor.
    Could add him to mine but then there's the complications each month of working out how much he owes me etc.
    Easier just to have his own and set up to pay the full each month.
  • edited 16 October 2022 at 7:20PM
    EmmiaEmmia Forumite
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    edited 16 October 2022 at 7:20PM
    WSB said:
    I am recommending a credit card to him, so he gets best exchange rates when travelling. Insurance on items bought both home and abroad.  Extra security rather than money coming direct from bank. And hopefully cash back.
    Not to get himself in debt with.
    He's a sensible lad and as such, I'm happy to be guarantor.
    Could add him to mine but then there's the complications each month of working out how much he owes me etc.
    Easier just to have his own and set up to pay the full each month.
    I'd suggest he forgets about cashback (which won't be worth much anyway) and applies for one with whoever he banks with. He should be thinking of this as credit building, primarily.

    Does he already have things like a mobile phone contract?
  • WSBWSB Forumite
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    He has a student account with Santander.
    He has a mobile phone but under our family account.
  • EmmiaEmmia Forumite
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    WSB said:
    He has a student account with Santander.
    He has a mobile phone but under our family account.
    He should probably look at Santander then for a credit card, and getting his own separate mobile contract in his own name.. 
  • He'll should try his own bank first. 

    Another option is to try a standard provider (e.g. Barclaycard or Tesco) that also offers credit builder cards. Apply for the standard product & he may be offered that or an alternative. 
  • DobbibillDobbibill Forumite, Ambassador
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    The Lloyds CB card is probably not the best choice for a first credit card. 

    They may be better to look at Santander where they hold a student account or some of the sub-prime cards like Barclaycard forward which only requires an annual income of £3k or maybe Aqua which caters for low income earners too. 
    While the APR will be higher if they use it correctly it will not impact them. 

    All the best.
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  • edited 17 October 2022 at 10:48AM
    WillPSWillPS Forumite
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    edited 17 October 2022 at 10:48AM
    HSBC and TSB offer student credit cards to to students who take out their student current accounts, if getting a card is an absolute neccessity. TSB enforce a 3 month wait and HSBC will realistically take a similar amount of time to get everything set up.

    That said, if he is on a salary, I would be inclined to state that is 'full time employment' (which it is) rather than mentioning the fact he was a student and will return to being one after his placement. Don't flip flop too much though as you'll end up getting flagged up on National Hunter. You might ultimately have to accept that your son is simply not eligible yet and advise him on other ways he could improve his credit worthiness.
  • WSBWSB Forumite
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    He tried applying for th Lloyds credit card initially as a student and then again as an employee.  The latter failed too but maybe he was flagged up then.
    Maybe try another company but initially apply as an employee.

  • Lloyds cash back card is a prime card for customers with a good credit file / history, certainly not the most premium but wouldn't be available to a student with no credit history

    If he has a placement year and a fixed contract he could apply but as above I'd suggest talking to Santander about a card as they at least see his account. Get him his own mobile contract even if you pay, a SIM only deal will build a positive credit history without being a big risk
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