Cashback Credit Card for Students...a good idea?

maninwhitecoat

After recently reading Martin's newsletter just now, i suddenly had a thought regarding the cashback credit card scheme.

Me being a student, i'm going to be paying for my tuition fees and accommodation, which takes it up to about £5K, probably more if i include other stuff.

I was wondering, because i've got money covered for this anyway, is it worth getting a cash back credit card, and use this to pay for the tuition fees and accommodation (I can set it up so that i pay my fees in installments), and then clearing the balance everymonth with the money that i have i was going to use to pay for anyway?

Thank you all

Regards

Danh

Chadsman

If you can persuade any CC co to give you a cashback card then yes it is definitely worth it... but it may be difficult to get a cashback card without a reasonable income.

Do either of your parents (or partner) have (or be willing to apply for) a cashback card and would be willing to add you as an additional card holder?

maninwhitecoat

Oooh, well, do i have to have an income? I think if i apply for one now, then i might be eligible because i'm working on a decent paying gap year, which is nearly coming to an end (but the CC co dont' have to know that).

My parents don't a cashback card. I don't think they will want one either, they have a CC already, and hardly use it. I didn't get a CC this year because i don't buy much anyway and have never seen the point in having one if i was to clear the balance each month. Might as well go with debit card if i were to do that?

newfoundglory

I managed to get a Nationwide cash reward credit card just before I turned 19 and became a student. I've had it 2 years now... but the cash back has gone from 1% down to 0.25%, which lets be honest is pretty crap. However i've probably saved a small fortune in foreign card usage. Avoid all "student credit cards" as they are RUBBISH.

Age 20, I have nearly 3 years of credit history with a perfect repayment record. So even though my income isn't very much, I have to say I'm pretty confident its possible for students to qualify for most of best deals. You have to remember that being a student, young and having good credit record most of banks unfortunately cant resist - and most credit cards don't actually have a minimum income limit unless otherwise stated, and even if they do they are often negotiable. Once you have one card for more than 6 months, you can often get another provider to "match" your current limit which can be quite handy for making money.

So my next target for this month is the Morgan Stanley Platinum cashback card to take all my fees for the up-coming year. However, I think i've left it a bit late to get the card in time. However, it should produce a nice amount of cash back (more than £20!!), and thats just on the fees! Won't include the money you will get back if you also apply for the card though a refferal site (probably about £12 to £15 for that on top!)... plus the 2% you get back on additional purcahses until december... oh and any interest you earn from savings by doing a 0% balance transfer to another card if you are that inclined

However, there are other cards worth considering... like the tesco credit card where you could get some cash back in the form of clubcard vouchers. Won't be as good as the morgan stanley... but at least you would get something worthwhile!

Definitely worth doing, but ALWAYS pay off the balance in full and on time. Can't underestimate the importance of being disciplined in this. And don't make lots of applications in a short period either.

maninwhitecoat

I only want one cashback card

martinpike

If you are disciplined with money, then yes, it's probably a good idea. As well as the cashback, you'll also be building up a positive credit profile.

If you're rubbish with money - forget it!

maninwhitecoat

Hmm...well i just tried the morgan and stanley one, and got refused. Not much i can do really, i'll make up the money another way.