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Student Credit Cards

The Student Credit Card Guide

Student credit cards work by allowing you to borrow money without any income – essential for students who may find it hard to buy books and other university essentials until their student loan arrives.

The majority of student credit cards offer a wide range of benefits such as very low interest rates for short term period, while some offer free online account management, free extended warranty, free price promise and free purchase cover. Additional features such as travel accident protection and card protection may also be offered.

The majority of UK high street banks offer specifically tailored student credit cards, which are usually part of a comprehensive student finance package including a student bank account and overdraft – however, they will expect you to bank with them in order to benefit from the lower rates.

Student credit cards are a good way to start building a good credit rating and can provide a flexible form of short term borrowing.

But, it is worth remembering that the amount spent on a student credit card still has to be paid back and the interest does tend to be charged at a relatively high rate compared to standard cards.

Advantages of signing up to a student credit card include:

  • Safer than carrying cash
  • Very low interest rates for short term periods
  • Lower APR than standard cards
  • No annual fee
  • Access to cash machines
  • Online account management
  • More convenient for some reservations and purchases such as flight tickets, hotels, or large purchases.
  • Enables you to buy what you need now, and pay back later when you have the money available.
  • May be useful for emergencies such as car repairs, etc.
  • Benefits such as purchase protection and travel insurance may be provided
  • Helps establish a credit history.

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