Are you a student in the UK looking for a credit card? Look no further! In this article, we'll guide you on how to find the best credit cards for students, helping you manage your finances and build your credit score during your time at university. Let's dive into the various options and benefits that come with these credit cards, so you can make an informed choice.
Credit Cards For Students In UK Table of Contents
The Benefits of Credit Cards for Students
The Benefits of Credit Cards for Students
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Build credit score:
Regularly using a credit card and paying your balance off on time can help you build a strong credit score. This is invaluable for securing loans, mortgages and other financial products in the future.
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Interest-free spending:
A majority of student credit cards offer an interest-free period, so you won't have to worry about accumulating interest for a certain period of time.
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Financial flexibility:
Credit cards can provide a helpful financial cushion during tight months. However, it's important to pay your balance in full to avoid mounting debt.
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Deals and discounts:
Some student credit cards come with exclusive discounts, cashback offers or other perks relevant to student life, helping you save money on everyday expenses.
Factors to Consider When Choosing a Student Credit Card
APR:
The Annual Percentage Rate (APR) represents the yearly interest rate charged on the card. As a student, you should aim for a card with a low APR.
Fees:
Check if there are any additional fees, like annual fees or foreign transaction fees. Aim for a card with minimal to no extra charges.
Rewards and perks:
Opt for a card which best suits your spending habits and offers relevant deals and discounts to save you money.
Spending limit:
Look for a card with a reasonable credit limit to ensure you don't overspend and accumulate unnecessary debt.
Best Student Credit Cards in the UK
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HSBC Student Credit Card:
With no annual fee, a competitive 18.9% APR, and an exclusive £60 cashback offer for new joiners, the HSBC Student Credit Card is a popular choice amongst UK students.
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Barclaycard Forward:
As one of the few credit cards designed specifically for young adults, the Barclaycard Forward card offers features like a reducing APR (if you maintain good payment habits), purchase protection, and a free entertainment streaming subscription.
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Halifax Student Credit Card:
Available only to Halifax Student Current Account holders, this credit card comes with no annual fee and a 19.9% APR. It can be suitable for students who already bank with Halifax and want to keep their finances in one place.
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Aqua Classic:
This card is designed for people with little or no credit history. It boasts a competitive 37.9% APR (variable), no annual fees and an initial credit limit up to £1,200. Additional perks include free text alerts and web access to help you stay on top of your finances.
Credit Cards For Students In UK Example:
Imagine you're a university student in London, looking for a credit card that offers a low APR and relevant perks. After researching the options above, you opt for the HSBC Student Credit Card. By charging your monthly travel pass and groceries to the card, and then paying off the balance in full each month, you can build a strong credit score, make use of the £60 cashback offer, and benefit from the reasonable 18.9% APR.
Now you're equipped with the knowledge to find the best credit card for your student life in the UK! Remember to always manage your spending wisely and make timely monthly payments. Feel free to share this article with fellow students who might also be in need of a credit card, and be sure to check out our other guides on Flik Eco for more personal finance and investing advice tailored to your millennial needs!
