Student credit card uk

Student credit cards are the order of the day. These credit cards are available to anyone under the age of 21. It is risky to get credit card for the youngster who does not know the responsibility of owning a credit card. It is like giving a 15 year old car to drive. They do not understand the risk of driving a heavy vehicle. A student using a credit card does not understand the risk of using the card and hence may misuse the card.


A student credit card is given as a free additional card along with the card of the adult card holder. The terms and conditions of such a card are very similar to the main card. It has the same rate of interest, same fees etc. These cards are the best way for the credit card companies to make money through charge. The balance on these cards is likely to increase considerably and the interest also increases proportionately making it difficult for the card holder to pay the balance. Such cards are risky for the main card holder as it may create a bad credit for him/her.


The next best option is a student credit card which is secured by a bank account. Such cards have a savings account of a participating issuer attached to it. The credit limit of the card is determined by the amount available in the bank account. When the student draws money with his card the savings naturally depletes making it difficult for him to overspend. Such student credit cards are helpful for students and parents as the spending limit is fixed. The student on the other hand learns to live on a budget and builds his own credit rating.


The importance of student credit cards is from the lessons of responsibility and importance of credit cards that the student learns from their usage.


Many prepaid or secured student credit cards are available in the market. The credit card companies give a lot of discounts and additional features that help the students. Some of the significant features are hotel rewards; airline rewards miles, cash incentives, restaurants and movie discounts.


There are many student credit cards available in the market. It is easy to compare the various deals available on the Internet. Before choosing a card you need to understand many terms like APR/interest rate. The other conditions to be carefully understood are missed payments.


Owning a student credit card may seem easy in the beginning, but it is easy to fall into a debt trap. There are many credit card companies throwing many offers at you, you an easily fall into a debt trap of thousands. The best way to use a student credit card wisely is to pay on time and avoid missed or late payments.


student credit cards have a lot of benefits if used wisely ; you can earn loyalty points, discounts to restaurants and movies very easily. Choose a good student credit card and use it wisely to avoid yourself from getting into debt traps.


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