As a student managing your finances can be tricky, especially when you have little money coming in & lots going out. A credit card for students could provide a safety net if you're faced with an unexpected bill while you study but you need to be careful.
Student credit card deals are specifically designed for those in full time study who may not be earning anything in the way of an income.
As a result they tend to be more flexible than other credit cards when it comes to accepting applications from people with little or no credit history.
However, although student cards tend to be more lenient with their application criteria, they do tend to offer more modest credit limits.
Many credit cards for students will also apply a higher interest rate than would be available with other credit cards - which means they can be an expensive way to borrow.
In most cases even the best student credit card should be reserved for emergencies and then paid off as soon as the statement arrives to avoid hefty interest charges.
When looking for a credit card for students it also makes sense to hunt around for the lowest interest rate available, so that if you are unable to repay in full one month the amount you’re charged in interest is kept as low as possible.
Many banks also offer other rewards or freebies to those applying for their student credit cards.
While these can come in useful, you need to see these as a perk and instead focus on finding the best student credit overall rather than the card with the best freebies.
If you think you're likely to need to borrow over several months then student credit cards are likely to be an expensive choice, especially with many banks offering students interest free overdraft facilities while they study.
If you are unable to repay the balance on your student credit card in full at the end of each month then it is essential to at least make the minimum payment. Fail to do so and you will damage your credit rating and could find it difficult to get the financial products you need, including a mortgage after you graduate.
To compare credit cards for student use at a glance, use our student credit card comparison table.
