Student Credit Cards


STUDENT CREDIT CARDS

With graduate debt averaging over 12,000, the ability to spread the cost of further education using a student credit card is obviously attractive. Adding to their appeal is the fact that these cards are relatively easy to obtain. Unlike many standard credit cards, they are available to people who do not have a regular, minimum income and credit history. They often come with tempting offers including low rates for an introductory period, shopping discounts and free CDs. Flexing student plastic has the additional benefit of creating a credit history that can be used to support future loan and mortgage applications.

So, with no regular income and credit history, what exactly is the attraction of students for the credit card companies? Well, the fact that graduates can expect to earn, on average, 400,000 more over their lifetime than the national average, means that financial institutions are eager to attract this extra earning potential. Banks and credit card providers know that the general public are reluctant to go through the hassle of changing accounts, so by attracting students early in their career, they are likely to stay with them for life.

Student credit cards can have drawbacks. If balances are not paid off in full each month, most cards aimed at students notch up higher interest charges than their regular counterparts. These additional charges often cancel out the benefits of store discounts or free CDs. Credit cards aimed at those in further education may not attract the useful bonuses that regular plastic does, for example air miles, cash back on purchases and interest-free periods.

Credit cards aren't free money. Flashing plastic creates a debt that must be managed alongside the repayment of tuition fees, bank overdraft and student loan repayments. Handled well, a student will benefit in the future from a good credit rating. Managed poorly, students may end up with a bad history that will adversely affect subsequent credit applications.

It's also important to note that some standard credit cards do not require the holder to have a minimum regular income or credit history. Students working part time and holiday jobs may earn enough to apply for a range of standard cards. So, it is important for students to check out all suitable credit card deals, not just the ones aimed at people in further education.

A little research before signing on the dotted line can really pay off. By taking the time to compare the deals available on all suitable credit cards, interest repayments can be minimised and the benefits of holding a card maximised. And that really is good news for students.

Please click here for more information of student credit cards available for the UK

Phil Edwards is a Business analyst in the city of London, freelance writer for several finance magazines and websites and co-owner of http://www.1st-uk-credit-cards.co.uk and http://www.1st-uk-loans.co.uk.


Free Quran in All Languages

Free Tafsir Books

Building Good Business Credit After Bad Credit

Can you establish good business credit if you have bad... Read More

Different Ways to Borrow Money

There are many different ways to borrow money. Outlined below... Read More

Are You The Only One Using Your Name?

Identity theft has become an epidemic. Millions and millions of... Read More

How To Save Money On Credit Cards

Some credit cards offer a cash advance option. But how... Read More

Warning: Todays Non Profit Credit Counselors Are Yesterdays Bill Collectors!

Here's a dirty secret, today's "non profit credit counselors" are... Read More

Minimize your Risk for Identity Theft

Identity theft is the fastest growing crime in America. According... Read More

Identity Theft - How to Protect Yourself

"Like the tan? I got tons of sun on that... Read More

Establishing Credit ? What You Need To Know Part 1

Establishing credit is one of the most important things you... Read More

Make Sure Your Credit Report Is Correct to Improve Your Interest Rates And Lower Insurance Premiums

Did you know that you could make sure to get... Read More

Is Your Credit Score Costing You Money?

Most of us want a good credit report to obtain... Read More

Bankruptcy vs. Credit Counseling: What Should I Do?

Credit Counseling and bankruptcy are both ways to relieve the... Read More

Debit Card vs. Credit Card, What Are The Differences ?

Ah, the "good old days". If you are a baby... Read More

The Things That UK Lenders Like to See on Your Credit File, (and? What They Don?t Like to See!)

Lenders are quite fussy about what they like to see... Read More

Low Interest Credit Cards: A Thing of the Past?

With interest rates rising, low or zero percent credit cards... Read More

Important Things to Know About Divorce and Credit

Joint debts remain joint debts.Both spouses signed a legally binding... Read More

Choosing The Credit Card That Is Right For You

Credit cards represent an important part of our financial lives.... Read More

The FICO Score Misconceptions

There are many misconceptions about credit scores out there. There... Read More

A Summary of the Fair Credit Reporting Act

This summary of the Fair Credit Reporting Act will explain... Read More

Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have migrated from being hip or convenience product... Read More

Its Your Credit - Take Care of It!

Thanks to the Fair and Accurate Credit Act, American consumers... Read More

I?ve Heard About FACTA; What Does It mean?

What FACTA means is that if you, as an individual,... Read More

Common Credit Score Myths

A lot of credit score myths about fico score ratings... Read More

How to Get Credit Reporting Agencies to Help You

The process of clearing credit can be laborious and frustrating.... Read More

Save Money and Lower your Payments by Improving or Repairing Your Credit

Having a better credit score not only represents easier access... Read More

Free Credit Report ? Watch Out for Scams

Many people may still not be aware of an amendment... Read More