Getting a credit card as a student in the UK can be both exciting and overwhelming. With various financial institutions offering cards for students, it can be challenging to find the best card that suits your needs. Don't worry, we've got you covered! In this blog post, we will dive deep into the world of credit cards for students in the UK, helping you make an informed decision about which card is best for your financial wellbeing.
Credit Cards For Students UK Table of Contents
Why Do Students Need Credit Cards?
Why Do Students Need Credit Cards?
There are several reasons why having a credit card as a student is beneficial:
- Emergency expenses: A credit card can provide a safety net for unexpected or emergency expenses, such as a sudden car repair or urgent medical bills.
- Build credit score: Using a credit card responsibly can help you build a solid credit score, which can make it easier to rent properties, qualify for loans, and possibly receive lower interest rates in the future.
- Rewards and perks: Many student credit cards offer rewards and perks, such as cashback, travel benefits and discounts at popular student retailers.
Features to Consider in a Student Credit Card
When looking for a student credit card, it's crucial to compare different cards' features and benefits. Here are some of the key factors to keep in mind:
- Interest rate: As a student, you may not have the best credit score, which could result in higher interest rates. Look for a card with a low Annual Percentage Rate (APR).
- Annual fee: Many student credit cards come with no annual fee— a great option for those on a tight budget.
- Introductory offers: Some cards offer introductory interest-free periods, balance transfers, or bonus rewards points, which can be valuable for new cardholders.
- Credit limit: Choose a card with a credit limit that suits your spending habits, but be wary of getting a card with a high limit if you're worried about potential overspending.
- Rewards: Opt for a card that offers rewards that align with your spending habits and preferences.
Top Student Credit Card Options in the UK
Here are some popular student credit cards available in the UK:
- Tandem Bank Cashback Credit Card: Tandem Bank offers a cashback credit card with no annual fee, a 0.01% APR introductory interest rate on purchases for the first three months, and 0.5% cashback.
- Barclaycard Forward: This card is specifically designed for students with limited credit history. The card offers a starting credit limit of £50-£1,200 and a reduced interest rate after one year of responsible use.
- HSBC Student Credit Card: HSBC offers a student credit card with no annual fee and a relatively low APR. The card also provides access to exclusive student discounts through the Visa Offers programme.
Credit Cards For Students UK Example:
Meet Alex, a first-year university student in the UK. Alex has a part-time job and is eager to start building a credit history while enjoying some extra financial flexibility. After comparing different student credit cards, Alex decides on the Tandem Bank Cashback Credit Card, as it offers a decent cashback rate and an attractive introductory interest rate. By using the card for regular purchases and paying the balance in full each month, Alex is able to save money on cashback rewards, build a positive credit history, and successfully manage their financial responsibilities.
Congratulations, you've made it through our comprehensive guide to credit cards for students in the UK! Now you have a better understanding of the benefits and drawbacks of student credit cards and how to choose the right one for your personal finance needs. Feel free to share this article with friends who might be in the same boat – they'll surely appreciate the tips. Lastly, don't forget to check out other helpful blog posts and guides on Flik Eco to continue leveling up your financial game!
