Student credit card

Dealing with mounting living expenses students are usually strapped for cash, and as a student you may be interested in obtaining a student credit card to tide you over for a period of time.

Credit cards should only be used for relatively short term borrowing because their interest rates are so high; typically at least 13% - which is much higher than the interest rate you would be offered with a personal loan, a loan interest rate could be as low as around 6%.

Lots of firms are offering student credit card facilities, and if you need to borrow money on a credit card you can take advantage of an ‘interest free period’ offered by nearly all lenders.

An interest free period on a student credit card will give you a set period of time during which you won’t be charged interest for your purchases; typically around 56 days, and as long as you repay your balance before this date you won’t pay any interest on your card. The credit card market is vast and therefore when choosing which company to apply to for your student credit card you should select a firm based on the APR rather than any headline rate you see advertised by them.