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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.
MORE RESOURCES:
MORE COLLEGE CREDITChicago Sun-Times, United States - 10 hours agoDespite the current nationwide credit crunch, the State of Illinois secured $100 million for the student loans by tapping a new source -- credit unions. ... |
Ask, and you might receive a lower credit-card rateSeattle Times, United States - 11 minutes agoPick up the phone, look at the latest credit-card offers and keep repeating this: The bank needs me more than I need it. By Susan Tompor Pick up the phone, ... |
Boston Globe |
US travelers face credit snafuBoston Globe, United States - 9 minutes agoBy Eric Lucas All I wanted to do was buy gas, so I put my credit card in the automatic card-reader and got ready to fill the tank. ... |
Credit - Google News
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