First and foremost, students must look at the alternatives before borrowing. Our advice is don't get into debt, but in reality it's just not possible sometimes which is why we've put together a student credit cards section specifically to meet the needs of todays students.
See if we can save you money and find the right card for you
Great discounts from Argos, Ticketmaster, Dominos, Gifts Galore and more including an amazing 2 for 1 curry offer. Free fraud protection.
| Credit Limit | Main Benefits | Standard APR | Credit Quality | Star Rating |
|---|---|---|---|---|
| 250 | Vouchers & Discounts | 14.90% | Good Credit |  |
The ethical bank is offering a superb package with up to £25,000 free travel accident insurance and great holiday and car rental discounts
| Credit Limit | Main Benefits | Standard APR | Credit Quality | Star Rating |
|---|---|---|---|---|
| 250 | Free Travel Insurance | 16.90% | Good Credit |  |
Flexible credit limits, balance updates via text and wide range of retail discounts make this a great choice for students.
| Credit Limit | Main Benefits | Standard APR | Credit Quality | Star Rating |
|---|---|---|---|---|
| 500 | Retail Discounts | 17.90% | Good Credit | |
One of few still offering 0% on balance transfers combined with online fraud protection gives you peace of mind.
| Credit Limit | Transfer Rate | Main Benefits | Standard APR | Credit Quality | Star Rating |
|---|---|---|---|---|---|
| 500 | 0% 9 months | Fraud Guarantee | 19.90% | Good Credit | |
Excellent range of discounts on gadgets, CDs, travel guides, sports gear, short breaks and free gifts make a very attractive option.
| Credit Limit | Main Benefits | Standard APR | Credit Quality | Star Rating |
|---|---|---|---|---|
| 500 | Upto 25% Retail Discounts | 18.90% | Good Credit |  |
A useful credit limit and bundles of discounts from some of the UKs top retails makes this a great card to have in your pocket.
| Credit Limit | Main Benefits | Standard APR | Credit Quality | Star Rating |
|---|---|---|---|---|
| 500 | Retail & Travel Discounts | 18.90% | Good Credit | |
Do you really need a credit card?
With the average graduation debt around the £13,200 mark, the option of being able to use student credit cards to spread the cost of living and finance further education is obviously an attractive one. They are pretty easy to get hold of too and unlike standard credit cards, they are made available to people who have no previous credit history or regular income which adds to their appeal. More often than not they also come with a host of tempting offers such as free CDs, discounted shopping at selected stores and low introductory offers. There is also the further benefit, if used sensibly, of helping to build a solid credit history that can be used for future applications for loans and mortgages.
Why do banks offer students credit cards?
When you apply for a standard credit card, you will need to prove you have a regular income and a fairly good credit rating all of which goes towards satisfying the card issuer that you'll repay what you owe them. So why exactly are credit card companies attracted to students when they have no regular income or credit history to prove their worth? It's simple really, they're taking a gamble. On average a graduate can expect to earn over their life time around £160,000 more than the national average. This combined with a reluctance to change bank accounts and credit cards in the future means that the banks and financial institutions are keen to tap into this earnings potential early. They are gambling on the fact that you will stay with them and their credit cards for life.
The benefits and drawbacks to a student credit card
Obviously the main aim of the card issuer is to make money out of you and if you incur interest charges on your balance, it will be at a higher rate than that of standard cards. Fair enough really when the risk they are taking is greater but what tends to happen as a result is that this cancels out the benefits of the tempting offers which initially attracted you in the first place. So the trick here is to make sure you pay your balance in full every month
Don't just assume that the card that is offered with your bank account is the best deal for you. Although these cards are specifically designed to attract students it worth taking the time to compare credit cards designed for the mainstream consumer market. There are some that do not require a minimum regular income and you may also find that you earn enough working part time and during holidays to qualify so it's important to check out all the options, not just those aimed at students.
