| Student
Credit Cards
While typically students do not have much money, banks realise
that graduates will be earning good salaries. Once overdrafts
and debts have been paid customers will often keep their credit
card. As a result there are a wide variety of student credit cards
on the market today.
Student credit cards allow banks to establish a credit relationship
early. Generally, the majority of people do not switch banks so
it's important to win custom early.
When considering whether or not to take out a student credit card,
it is worth addressing whether it is affordable. Credit cards
are likely to lead to debt that will be added to the costs incurred
by tuition fees, student loans and overdrafts. Minimum payments
will have to be made monthly. It is also advisable to try and
pay off a large proportion of the bill or the balance in full
to avoid mounting costs.
If payments are unable to be met it is likely that the cardholder
will face a bad credit history. This can be detrimental to obtaining
credit in the future for important items such as cars and mortgages.
All the major high street banks offer student credit cards, so
it is important to compare the major student cards that are on
offer with the high street banks.
Many student credit cards offer discounts at bookshops or other
one-off freebies that sometimes include CD vouchers or train passes
to entice younger customers.
It is important for students to look out for high APRs normally
on cash advances, as well as the absence of extras that are offered
to other customers such as loyalty schemes, reward points, cash
back options and travel insurance.
Are you looking for general advice or other information
regarding Home Insurance? You may wish to consult our advice
guide.
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Applying for Credit Cards
Caution: Remember that every credit card application you make
will result in a credit search being conducted. We do not advise
you to apply for more than one credit card at a time. If your
application is declined, we would suggest waiting at least three
months before applying for a different card.
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