Maybe you are thinking about getting a credit card, or perhaps you are thinking: “Who needs a credit card anyway?” Credit cards are more than a luxury or an extra worry in your life; they are actually quite useful, and, if you’re a student, they can definitely be life-savers when there’s an unexpected spend. For credit card newbies, what you need to know, in plain English, is that credit cards are tools for delaying payment for anything you buy. Your credit card company lends you the money and you repay it at a later date. However, these are the best credit cards for students that will take you on with no credit, little credit, or even in some cases bad credit.
Having a credit card has even more perks than paying at a convenient date, for instance, you’ll need a good credit history to get financial products, such as a mortgage, in the future. Also, for over £100 purchased items, you are entitled to receive a refund from your company if something goes awry. And the all the adds you might see on the streets are true, you do get cash back rewards from several companies.
Now, if you are already sold out on the idea, the next step is to check which card provider is the best option for you. You want to start looking for interest rates, limits, and benefits. We’ve have put on a list with the best credit cards for students so you don’t have to wound up about it.
Halifax has an Annual Percentage Rate (APC) — meaning how much your borrowing will cost over the period of an average year — of 19.9%. The monthly limit is £1000, which is quite generous for a student card, but ultimately requires you to have an income. Some nice things included on the offer are a mobile/online banking option to help you keep track of your finances easily, free text alerts and online fraud protection. If you’re up for it, make sure you have a Halifax student accounts fair and apply directly at the branch.
HSBC’s student card has no annual fee and an APC of 18.9%. The monthly limit is £500 pounds and you can earn some cash back from visa offers. A mobile banking app and the possibility of using your card abroad are part of the offer. Before applying, make sure you meet the requirements listed on the website and have a regular HSBC student account.
The best thing about NatWest’s credit card is that you get up to 56 days interest-free on purchases. Amazing, right? You also get a decent monthly limit of £500 and an 18.9% APC. Online and mobile banking are also available and a good start is to have a NatWest student account. This is definitely one of the best credit cards for students!
Another amazing 56 at 0% interest! After that, RBS’s APC is the average 18.9%. The standard monthly limit is £500 but this can vary depending on RBS’s credit assessment of you. Perhaps this doesn’t sound so great, but RBS has a good reputation and offers some benefits such as mobile/online banking and a £0 annual fee.
The amazing offer of a £1000 limit over 12 months, will make you wonder “where’s the catch?” There isn’t any, but there are things to consider. For instance, the APR is slightly higher, 19.9% and you need an income. The juicy limit also changes depending on your circumstances. On a brighter note, you get 1% cashback on first £500 spent!
After seeing the juicy offers above, you probably think Bank of Ireland’s monthly £350 limit is rubbish. It isn’t! For starters, the APR is just 17.9% and you get 0% on purchases for 3 months. It’s a win-win if you are one of those who don’t spend much.
So, now that you know the very best options, choose wisely and remember, credit cards are meant to aid you and be one of the steps into an stable adulthood. In brief words, don’t go crazy and take care of your expenses!