Can Students Apply for Credit Card in the United Kingdom?

A student credit card, if used correctly, can prove to be a valuable tool for pursuing higher education, pay off loans, and can help cover up daily expenses that most of us struggle with.

Students must choose a credit card wisely. Maintaining the perfect work-study balance; many opt-outs of working full time to pursue their education and hone their skills towards their degree program. This is why it’s relatively common to see young adults struggling at the financial forefront.

A student credit card, if used correctly, can prove to be a valuable tool for pursuing higher education, pay off loans, and can help cover up daily expenses that most of us struggle with.

How Does it Work?

It works pretty much the same way as a regular credit card would, except that it is specifically catered to the student community enrolled in full-time degree programs in colleges and universities.

This credit card is used the same way to make purchases and pay bills, but the credit card providers are generally lenient with students owing to little or no monthly income. 

Student credit cards typically come with lower credit limits ranging from 500 euros to 1500 euros. There is also a significantly higher interest rate on the payments you make, reflecting the uncertainty of costs perceived by the card providers.

How to Qualify for A Student Credit Card?

When you apply for your first-ever student credit card, these factors may be taken into consideration by your card provider:

• You should be residing in the United Kingdom.
• Be older than 18 years of age.
• You should have a student bank account with the credit card provider that you desire.
• You should be enrolled in a degree program in your college/university, and the course should last for 2 years minimum.
• No previous records of bankruptcy or pending debt.
• Your student loans and side income may be evaluated before you finally qualify.

What Are the Advantages of a Student Credit Card?

• By maintaining your purchases within the credit limit and paying off your monthly dues on time, you can qualify for a standard card much easier after your graduation.
• A student card provides purchase protection to its users, meaning if you made a purchase ranging from 100-30,000 euros, and it turns out faulty, you are entitled to a full refund by law.
• The lower credit limits and strict rules prevent students from getting into debt and making responsible decisions with their money.

What Are the Cons?

• Any missed or delayed payments can affect your credit score massively.
• Higher interest rates and annual fees may outweigh the benefits of the card itself.
• The tighter credit limits may make it difficult to wiggle in higher costing payments and purchases.

How to Manage Your Credit Card?

The best advice I can give you is never to make purchases that you can’t afford. Never exceed your current bank balance, and don’t leave your payments pending. 

Always pay your monthly card bill then and there, without additional penalties and fees. This can prove a turning point for establishing a good credit history. This will pay off later in life when you acquire mortgages and emergency loans.

Before opting for a student card, make sure to thoroughly look into alternatives. These can be interest-free overdrafts, student grants, and acquiring secondary ownership of your parents’ credit card.