UK Student Credit Cards Information

For students in the UK, whether going to school locally, nationally, or in another country, credit cards have become an important part of existence.  Although the number of students in the UK has increased, it is still important that certain information be understood prior to applying for any credit card.  Today, a number of laws have been passed specifically to protect students and keep them safe.  One of these is making it more difficult for credit card companies to market student UK credit cards on campus using free products and/or services.

Other things that a young adult should know before applying for a UK student credit card are listed below.

•    Most credit card companies and banks have a minimum age requirement.  For some, the age is 18 and for others 21.  The reason this information is important is that if there were a minimum age of 21 to apply but a young adult begins applying for cards at the age of 18, all of the submitted applications would be seen as inquiries.  When reporting credit agencies see a large number of inquiries by one individual, it raises red flags that can actually damage a person’s credit score.  Therefore, it is imperative to know the minimum age requirement for any card being applied for but also to choose just one to three cards for the application process.

•    Any student should spend ample time online researching the different options for a UK student credit card.  Some cards are worth applying for while others should be avoided at all costs.  The challenge is that some credit card companies and banks will use strategic marketing to make a bad card look great.

•    No matter how monotonous, the fine print for any potential student credit card should be read and understood.  All too often, pertinent information is carefully worded or even hidden.  The student has both the right and responsibility to understand all the features, services, and fees associated with a particular credit card.

•    Once a UK student credit card has been secured, it is essential that all payments be made on time.  For one thing, a late payment would affect the person’s credit but second, a late payment would result in a late fee.  The goal at all times is not only for payments to be made on time but also for the outstanding balance to be paid off in full.  Since many student credit cards come with a high interest rate, carrying a balance over each month would result in the individual paying more than necessary in interest, often taking years to pay off.

•    Typically, a UK student credit card starts with a low credit line.  The reason for this is for the issuer to determine the way in which the cardholder will manage the financial aspects of the card but also to teach students how to be responsible.  When payments are made on time and the student never spends more than the credit limit, it will establish that person has someone who is creditworthy.  As the student proves him or herself, the limit would be raised.  However, to stay out of trouble, many experts recommend that students request the credit line never to go over a certain amount.  That way, risk of spending too much is greatly reduced.

•    Finally, rather than carry around numerous UK student credit cards, it would be to the person’s benefit to have just one or two.  Again, this would help maintain positive credit but also eliminate temptation to spend more than can be afforded.