The Ultimate Guide to Student Credit Cards
By Jake Butler in Student Money
As the leading student finance site, you may be wondering why we would promote something such as a student credit card.. Indeed very few students we speak to have ever had one, probably because there are so many reports in the media of people spiraling into bad debt.
But bear with us, there are some real benefits and rewards of having a credit card, so long as they are used responsibly. This is one of those guides worth reading to ensure you fully understand how credit cards work and moreover, how they can work for you. Our trusted advice will make sure that you do not get into debt as long as you are sensible.
We’ve also put together a student credit card comparison table to guide you in the right direction.
Getting a credit card can have its benefits but it is not for everyone. Do not consider applying for a student credit card if you:
- are poor at managing your personal finances
- want to use the credit card as an extra source of income. A credit card should not be seen as extra funding once you have run out of your student loan and overdraft (unless you are a budgeting expert)
- or if you are planning on using it to get you out of existing debt (it is more likely to start a downward spiral)
Quick contents
The best credit card
There are specific student credit cards that you can compare below that offer great rates on borrowing but they do not offer as many benefits as some standard cards. Here is our top suggestion for a credit card with some excellent features.
Halifax All in One
- 0% on purchases for 11-15 months (dependent on some factors)
- 0% on balance transfers 11-15 months
- No need to have a Halifax account (although might be a good idea after 15 months in order to stop balance transfer charges)
- Higher credit limit than student credit cards
- After 15 months balance transfers have a 3% fee and the representative APR on purchases is 17.9%.
- See more details and apply »
This is a great card for those that can manage their money. However, do not let the 15 months at 0% tempt you to spend big with your credit limit. You must clear any debts as soon as possible.
If you spend a large lump sum then you should plan your repayments over the 15 months in small affordable chunks.
You can apply for the Halifax All in One card here.
Student Credit Card Comparison
| Bank | APR | Credit Limit | Positives | Negatives | Apply Now |
|---|---|---|---|---|---|
 Natwest | 18.9% | £500 | - HP, Lonely Planet, Firebox & more discounts - Online fraud protection | - Must have Natwest student account - Cash advances are 3% | >More Info |
 Halifax | 17.9% | £500 | - Choose from 5 designs - Free text alerts - Online fraud protection | - Cash advances are 3% | >More Info |
 Lloyds TSB | 19.9% | Variable | - Online fraud protection - Students with good credit may get a bigger limit | - Must have Lloyds student account - High APR | >More Info |
 RBS | 18.9% | £500 | - HP, Lonely Planet, Firebox & more discounts - Online fraud protection | - Must have RBS student account - Cash advances are 3% | >More Info |
| BoS | 19.9% | £500 | - Choose from 5 designs - Free text alerts - Online fraud protection | - Cash advances are 3% | >More Info |
 HSBC | 18.9% | £500 | - Online Fraud Protection - Holiday Discounts | - Must have HSBC student account | >More Info |
Don’t forget that all of these student credit cards will require you to have a good credit score (which you can check for free here). You will also need to supply your student loan papers for some and proof of a previous address.
This table is a comparison and therefore does not contain 100% of the information about each student credit card. Should you wish to find out full details then meet with a bank representative or follow the links in the table to find out more.
Why would you want a student credit card?
Now you may be reading this wondering why you would ever want a credit card that’s for students. Here’s the tip though, a credit card could actually benefit you even if you don’t use it. Here are 5 reasons why you should consider applying for one:
- Improve your credit rating: If you have a poor credit rating (Last but not least, this is probably the most important of them all. It is almost essential to ensure that you are keeping up with payments and managing your finances correctly.It’s pretty simple. All you need to do is head into your bank and set up a direct debit from your student account into your credit card account. Only do this if you are sure that you will have enough money in your student bank account every month.
Remember to just be careful and remember these 3 things:
- If you don’t have the money to fund your spending, don’t spend it
- You can improve your credit rating without even using your card (chop it up)
- Do not use a credit card as a type of loan or last resort.
Last updated 23rd April, 2012
