The Money Stop

As a student in the UK it can be very difficult to maintain a healthy cash flow, and often students need a little flexibility and assistance when it comes to finances, whether it is for books, entertainment, or just general purchases such as travel costs or groceries. This is particularly true for students that are living away from home, who often aren’t able to get financial support as readily as those living at home with parents and who also have the added cost of bills and rent to deal with.

A student credit card can really help out in circumstances such as these, providing you with a financial lifeline when cash flow becomes a problem. However, as a student it is important that you use the credit card responsibly and you make repayments on time and for at least the minimum amount requested otherwise you could start your life after leaving college or university with a bad credit rating, which could cause real problems when it comes to taking out finance in the future for things like a car or a property.

There are a number of benefits for students that take out a credit card whilst still at college or university, and some of these include:

• Being able to enjoy credit to help out in times of financial need for items such as books, groceries, travel etc
• Being able to use your card to shop online or by phone, as well as being able to pay for purchases without having to carry around cash or a cheque book
• Being able to build a credit rating ready for when you leave college and may want to take out finance for purchases such as a car or a property – this will make it far easier to get a good deal on finance when you leave college
• Being able to build up a financial relationship with a bank, which will make things easier when you start work and need banking services and products such as accounts, savings, loans, mortgages, and other financial products and services
• Being able to spread repayments on larger purchases rather than to leave yourself struggling financiall

There are also some things to bear in mind when using a student credit card:

• Always try and repay the balance on the card in full at the end of each month, as this will minimize the risk of spiralling debt and will help you to build a good credit rating for the future. It will also enable you to enjoy the benefits of a credit card without being charged interest
• Avoid missing repayments or paying less than the minimum payment, as you will otherwise end up with a tarnished credit history and rating before you have even left college, which could make it very difficult to get other forms of finance in the future

Look around for the right card, and compare factors such as interest rate, repayment periods, penalties and charges, and any benefits that come with the card such as discounts, rewards, etc.

Related Posts

Barclaycard acting irresponsibly

Credit card provider Barclaycard has been accused of acting irresponsibly after it was found that the financial giant had been contacting customers in order to try and encourage them to take money out on their

Can you benefit from being a credit card rate tart?

There are so many different types of credit cards in circulation in the UK these days it can be difficult to determine which one might best suit your needs and circumstances. However, for some people

Business credit cards V charge cards

If you run or own a small business you will probably know how difficult things can become when cash flow problems arise, and this can make it difficult to make purchases for your business as

Debt considered acceptable because of student loans

According to a recent report the popularity of student loans has made debt in the UK seem even more acceptable. According to the financial education charity Credit Action student loans have become such a norm

Graduates urged to prioritise costly debt

Graduates may have to put up with student loans but credit card debt should be paid off as quickly as possible, an expert has urged.Richard Brown, chief executive officer of financial information website Moneynet.co.uk, remarked

Students need to be more careful over getting into debt

According to a recent report the level of student debt in the UK is on the up, with many students graduating from university having racked up huge levels of debt along the way. One credit reference

Student debt “unlikely” to affect first time buyers

Having a student debt is "unlikely" to restrict students' abilities to make their first steps onto the UK property market, one expert claims. Financial solutions specialist Firstrung said that despite recent reports that student loans

Students given warning on credit cards

As thoughts begin to turn towards the new academic year, British students were advised by experts at Barclaycard yesterday that, while credit cards can be a good way of managing finances if used wisely, they