First credit card as a student

ttis

Hi, I’m looking to get a credit card simply to build my credit score however when I do a check on here for like the tescos one for poor credit it says I’ll be rejected- I assume as I don’t earn enough per year? (Only about £10k ish part time) 

I was wondering if there’s any advice. I’d simply use it to pay rent each month and immediately pay it off (£550 each month). 

CliveOfIndia

You need to be looking at credit-builder cards.  But if you're finding you're not being accepted for even them, you're probably better off waiting a while.

In the meantime, check all 3 of your credit files, just to make sure there's nothing untoward on them.  Also check that your address is recorded consistently and correctly, and that you're registered on the ER.

Also, do you have any other debt?  If so, this will be factored into affordability calculations, and could well be a factor.

It can sometimes be worth running an eligibility check on the lender's own website, as they tend to give slightly more accurate forecasts than the generic third-party aggregators.  But of course, that's still not a guarantee of acceptance.

Oh, and ignore your meaningless score, though using a credit card responsibly can help to build up a favourable history, which is what's important.  But if you're not eligible for one just yet, then it's something of a moot point.

tacpot12

It's unlikely that you can pay your rent with a credit card. Buying your food with it would be a more sensible way to start to use your credit card if your aim is to build a solid credit history. If you only use it to buy food, you don't run the risk of your spending getting out of hand as you know you can already afford the food you buy.

Credit cards are just about the most complex financial product that you, as a retail consumer, have access to. Make sure you understand how they work (especially as to how payments are applied to outstanding balances and how interest free periods work) before getting one. You might also read up on Section 75 and 75a of the Consumer Credit Act 1974 to get an idea of how these valuable protections might work for you.

lr1277

There are some credit cards for students.

One option is to try the bank where you have your current account and where your student finances are paid into.

Another option is the website called finder.com.

Into Google type:

finder student credit card

It lists 4 credit cards for students. 2 of those cards may require you to have your student account with the bank.

Edited to add:

Made sure are on the electoral roll at the address which you put into your application.

It can be helpful to have some kind of credit contract. Easiest suggestion is to have a pay monthly mobile phone SIM.

inthezeroroom

ttis said:

I was wondering if there’s any advice.

Yes. Don't do it. 

As a student, I 'qualified' for a Barclaycard. There began a 30-year journey with consumer debt, thankfully now behind me. And yes, the Barclaycard has gone.

You do not not need a credit card to live.

You do not need a credit card to get a mortgage.

It will not make you smarter or more attractive.

You do not need to 'build credit' unless you intend to go further into debt.

Be different. Don't do it.

CliveOfIndia

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

Yes. Don't do it. 

As a student, I 'qualified' for a Barclaycard. There began a 30-year journey with consumer debt, thankfully now behind me. And yes, the Barclaycard has gone.

You do not not need a credit card to live.

Without any doubt, a credit card can lead to a nasty spiral of debt if used irresponsibly.  But as long as you fully understand how they work, and can be disciplined enough to only spend what you can genuinely afford - rather than viewing them as a magic pot of free money - they can be a very useful financial tool.

It's akin to saying no-one should ever use a power tool when doing DIY.  The majority of people have enough common sense to use them safely, understand the potential dangers and take appropriate precautions.  But there are certainly quite a few who use them recklessly and who end up in A&E or worse.

Of course you don't "need" a credit card, but they shouldn't be viewed as inappropriate for everyone.

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

You do not need a credit card to get a mortgage.

You do not need to 'build credit' unless you intend to go further into debt.

A mortgage is debt, and a form of debt (and usually the largest debt) that many people will want at some point.  You're right, you don't "need" a credit card, but it is - if used responsible - a simple and free way of building up a decent credit history.  And yes, you can get a mortgage with zero credit history - but it just tends to be easier if you've got a bit of a track record behind you.

Nasqueron

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

Yes. Don't do it. 

As a student, I 'qualified' for a Barclaycard. There began a 30-year journey with consumer debt, thankfully now behind me. And yes, the Barclaycard has gone.

You do not not need a credit card to live.

You do not need a credit card to get a mortgage.

It will not make you smarter or more attractive.

You do not need to 'build credit' unless you intend to go further into debt.

Be different. Don't do it.

It's not really helpful to keep posting negative comments about credit cards based on your own anecdote, many of us use them fine enjoying the up to 56 days interest free on purchases, S75/chargeback protection, 0% transfers to maximise revenue etc etc

WillPS

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

Yes. Don't do it. 

As a student, I 'qualified' for a Barclaycard. There began a 30-year journey with consumer debt, thankfully now behind me. And yes, the Barclaycard has gone.

You do not not need a credit card to live.

You do not need a credit card to get a mortgage.

It will not make you smarter or more attractive.

You do not need to 'build credit' unless you intend to go further into debt.

Be different. Don't do it.

To add balance - I got a Student Credit Card from Natwest when I went to university. I used it sensibly, built up my credit record and when I entered full time employment I was eligible for prime credit cards despite a default still on my record from a Vodafone account I mismanaged when I was 18. 

You're an adult and you can make your own decisions about how you live your life and your approach to debt. People of all ages get in to problematic debt and it's a trope to suggest that students or young adults are inherently less responsible than older people.

I would suggest that participating in MSE Forum already puts you way ahead of the curve in overall awareness of things, and you're clearly considering this carefully.

You and whoever you seek credit from are the only parties relevant when judging how responsible with credit you are or would be.

ttis said:

Hi, I’m looking to get a credit card simply to build my credit score however when I do a check on here for like the tescos one for poor credit it says I’ll be rejected- I assume as I don’t earn enough per year? (Only about £10k ish part time) 

I was wondering if there’s any advice. I’d simply use it to pay rent each month and immediately pay it off (£550 each month). 

There are specific cards designed for students with HSBC and TSB. Both require you to hold a Student Current Account with them.

You probably won't be able to use them for rent. You can use them for shopping (maybe once a month) as others have suggested. You might find the credit limit allows little else.

If you do get one then don't pay it off immediately otherwise it looks the same on your credit record as a card which isn't being used. It is thought that lenders wish to see a history of responsible usage. The best thing to do is allow a statement to generate each month and then pay in full (by direct debit would be sensible).

ttis

ttis said:

Hi, I’m looking to get a credit card simply to build my credit score however when I do a check on here for like the tescos one for poor credit it says I’ll be rejected- I assume as I don’t earn enough per year? (Only about £10k ish part time) 

I was wondering if there’s any advice. I’d simply use it to pay rent each month and immediately pay it off (£550 each month). 

Thanks for the feedback guys! I am on the ER and have been for two years now. I just suggested rent as I know I can cover it with my savings. I already have about 7k saved up so I’d like to say as a uni student I am quite responsible and will only use the card for what I can afford! 

I am with nationwide and chase so not sure they have cards I can apply for. Also another user asked if I have any other debts or anything- I don’t. I pay for my phone contract as well as suggested.

i do start a placement year in July (25k for the year) so I might wait until then as I will have a larger income. I am employed at two places as well so not just student finance coming in so honestly don’t know why my soft check got rejected. 

Thanks for the help so far guys!

MEM62

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

Yes. Don't do it. 

Why not?

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

As a student, I 'qualified' for a Barclaycard. There began a 30-year journey with consumer debt, 

Due in no part to Barclaycard but rather to your inability to control your spending.

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

You do not not need a credit card to live.

You do not need a credit card to get a mortgage.

Absolutely true, you do not need it for wither of those things.  However, it is a very useful tool when used responsibly.

inthezeroroom said:

ttis said:

I was wondering if there’s any advice.

You do not need to 'build credit' unless you intend to go further into debt.

 Again, misleading.  A credit card is not an automatic route into debt.  And there are even those without on that have amassed debt.  You whole post is, frankly, misleading.  
  

Nasqueron

ttis said:

ttis said:

Hi, I’m looking to get a credit card simply to build my credit score however when I do a check on here for like the tescos one for poor credit it says I’ll be rejected- I assume as I don’t earn enough per year? (Only about £10k ish part time) 

I was wondering if there’s any advice. I’d simply use it to pay rent each month and immediately pay it off (£550 each month). 

Thanks for the feedback guys! I am on the ER and have been for two years now. I just suggested rent as I know I can cover it with my savings. I already have about 7k saved up so I’d like to say as a uni student I am quite responsible and will only use the card for what I can afford! 

I am with nationwide and chase so not sure they have cards I can apply for. Also another user asked if I have any other debts or anything- I don’t. I pay for my phone contract as well as suggested.

i do start a placement year in July (25k for the year) so I might wait until then as I will have a larger income. I am employed at two places as well so not just student finance coming in so honestly don’t know why my soft check got rejected. 

Thanks for the help so far guys!

Nationwide certainly have a credit card but you'd do better trying a credit builder card like capital one or vanquis - then just do your shopping or fuel each month and allow the DD to clear the card in full every time and you will build up a good credit history (ignore the fake score)