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.
The average American knows very little about bankruptcy. Most people... Read More
Identity theft is the fastest growing crime according to the... Read More
Under the Fair Debt Collection Practices Act, collectors are not... Read More
Getting worried that one of your clients, customers or patients... Read More
Creditors will measure your credit rating based on the following... Read More
Individual banks elect to become members of ChexSystems, and to... Read More
1. Deleting Errors in 48 HoursThis is the absolute fastest... Read More
A line of credit, roughly defined, is the amount of... Read More
In "Become the Squeaky Wheel" a book recently published, Michelle... Read More
In my previous article "Establishing Credit ? What You Need... Read More
For all people shop around for the best rate, there... Read More
Why do some people get offers for pre-approved credit cards... Read More
Credit cards can be a very quick way of getting... Read More
Obtaining a credit report is an excellent way to begin... Read More
Parents have the full responsibility for their children and their... Read More
The credit industry if rife with pitfalls. If you have... Read More
If you begin foaming at the mouth once a month... Read More
A "rate tart" is someone who switches from one zero... Read More
Understanding credit report scores is important when you see your... Read More
Bewildered by the sheer variety of debit cards and credit... Read More
How can I prevent Identity theft from happening to me?... Read More
Step I - Selecting A Collection AgencySelecting a credit collection... Read More
Several different types of credit cards offer several different options,... Read More
Credit cards are a form of unsecured credit. The issuer... Read More
These days, credit cards in the UK are competing with... Read More
Credit Score FactorsThe information contained on our credit reports affect... Read More
You've probably heard the term credit scoring. You may have... Read More
It is important to know your credit rating for a... Read More
Getting your first credit card is a big deal and... Read More
In Less Than 30 Days. "What can you do to... Read More
Companies that issue credit cards want to make a profit.... Read More
"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You... Read More
Credit cards are just so convenient, aren't they? There's no... Read More
Parents have the full responsibility for their children and their... Read More
Listed below is a useful guide to credit card terms.... Read More
The process of clearing credit can be laborious and frustrating.... Read More
Raising your credit score can be a fairly simple and... Read More
Credit Scores That HurtIs your credit score being held against... Read More
Keep Your Credit History Clean - Remove A Negative Credit... Read More
Negotiable instruments like checks and drafts have become an indispensable... Read More
If gold medals were awarded for marketing consistency, the credit... Read More
Credit card companies make their money on the 85% of... Read More
What are inquiries?When you apply for credit the creditor or... Read More
Congratulations college freshman! You're about to embark on one of... Read More
Finance is a big word for some of us. It's... Read More
Everywhere we go, the word credit can be found, shining... Read More
Having credit education is like knowing how to read. It... Read More
Credit cards have migrated from being hip or convenience product... Read More
Fixing a credit report starts with seeing what's on it.... Read More
Reach into your wallet or purse, pull out a card,... Read More
Credit card consolidation is a popular solution for those with... Read More
By far the greatest invention the banks have ever come... Read More
There are many different ways to borrow money. Outlined below... Read More
Whether you have no credit or damaged credit, secured credit... Read More
What FACTA means is that if you, as an individual,... Read More
Somebody once said, "There is always a way of knowing... Read More
Chances are you have received your share of "pre-approved" credit... Read More
There's only one way to discover the "health" of your... Read More
If you are just entering the world of credit cards,... Read More
Millions of Americans suffer because of bad credit these days,... Read More
What is Credit? Credit is money granted by a lender... Read More
When you're dealing with credit cards, you're playing with fire.... Read More
There are millions of consumer credit reports on file from... Read More
When you apply for credit one of the first things... Read More
Introduction In this article, a presentation is made of the... Read More
Americans are more concerned about identity theft than unemployment or... Read More
Credit |