Student Credit Cards

The hassles of student life as unending, there is studies to be done, parties to attend, enjoy with your friends. Adding to these hassles you have to maintain your own bank account.

Student Credit Card is the beginning of credit history for the students. Every bank wants to draw accounts of customers. Hence they provide Credit Cards to students and maintain their credit history thereby allowing them to take decisions on whether the student will be a good customer in future also. Loans and credit cards are not provided to international students because they cannot show a credit history.

Student Credit cards are provided to the academic community. They may be part time or full time students, faculty or staff members. Anyone above the age of 16 is eligible for the student credit cards.

To apply for a student Credit Card you require a bank account or a building society account to pay the student loan into the account. Generally banks do not pay good interest rate for their accounts for any savings made. Hence it is appreciable to select a building society account which will yield high interest rate on savings. The other option is to have two accounts one to pay the debts and the other where spare savings are maintained thus the interest earned on these savings are also saved.

There are many questions to be borne in mind while choosing a Student Credit Card.

• Check whether there is overdraft facility and whether the overdraft will be charged.
• Check whether the card is secured.
• Check if there are charges for services due to rare overdrawing.
• Whether a cheque guarantee facility is available and the limit for drawing is higher than the limit for drawing in cash points.
• Whether budget planning is available.
• Check whether there is charge for drawing from cash points of other banks.

Please note these while choosing your card.

There are many advantages of owning a Student Credit Card.

• There is no need for a co signer
• Credit history is not required
• No Annual Fees
• Online Account Management systems are available
• Option for Autopay of credit card bill

To open an account some details are required. They are your full name, address of your residence, your college address, your National Insurance number. Banks also request for a reference, which can be your parent or your college principal.

There are two types by which you can pay through the student credit card. One is monthly direct debit, the other is standing order. You will have no control over monthly direct debit as the other institution has right to debit from your account. In Standing order accounts you can instruct the bank to pay on your behalf as and when money comes into your account.

Student Credit Cards make life easier for the students. Always exercise caution on overspending on your card as this will only make your life more worrisome.