Are you a student and looking for a credit card?
As a student, juggling your finances can be difficult. From credit cards to student loans, a crash course in borrowing is needed just to make it through the three or four years of higher education.
A credit card can certainly come in handy during this time – some even consider it a must have for emergencies. You’re often going to be short of cash until your next loan payment, even if you do have a part-time job – having a credit card for these occasions does give you more financial freedom. Not only can having a credit card ensure you’ll be able to buy the essentials, but can also come in handy in emergencies such as when your car breaks down or you need to pay that electricity bill.
You could also use your credit card to purchase text books online rather than in store – you may find you’ll make a saving this way. The same is true about many other items from clothing to furniture, electronics and music – and having a credit card means online purchases are quick and simple. This is the period in life where every penny counts for most people and with up to 51 days interest free credit if you pay your balance off in full each month, you may not have to wait quite so long for the essentials.
How to improve your chances of being accepted for a credit card now and in the future
Used responsibly a credit card could be an excellent first step towards building a healthy credit history – something that’s important if you want to be able to take a mortgage on a house, buy a car, or own your own business at some point in the future.
Your credit record is documented in a report that’s maintained by a credit bureau – there are three main bureaus that most Financial Services companies use: Experian, Equifax and Call Credit. The bureaus that maintain your credit history get information about your credit status from banks, finance companies, credit card suppliers, department stores, etc. When you ask to borrow money from a bank or apply for a mortgage, the loan or mortgage provider will use information contained on your credit report to decide whether it’s safe for them to give you money. If your credit report shows that you pay your bills on time and have managed credit accounts responsibly in the past, you may stand a much better chance of getting a loan, mortgage or credit card.
Your credit report also contains a record of where you live now and have lived previously. Throughout a typical 3 year course you may move house frequently, so it’s important that you keep an accurate record of your previous addresses and the length of time you lived there. Always ensure that you update any companies you have credit with of your new address and ensure that for each property you get registered on the electoral roll.
As many financial services companies will look at how you manage your credit accounts, you may find it harder to get approved for a credit card, loan or mortgage if you have never taken credit in the UK previously. So you might want to consider paying for your gas and electricity bills by direct debit, or paying for your gym membership monthly – as regular payments on both should appear on your credit report. The same is true if you have a mobile phone contract.
Still confused? Take a read of our frequently asked questions which may help shed some light…
Frequently asked questions
Q: ‘I’ve applied for a few cards online and have been refused by all of them for a variety of different reasons. Where should I go to get a credit card?’
A: Every credit card application is registered as a credit search. If you keep applying for credit cards and keep getting rejected, your credit history may get worse and worse. It may be best to stop applying for cards in the short term. You’re probably best leaving between 3 and 6 months between applications to give you time to repair your status (but we’re making no promises, it may take longer). By paying off bills, maintaining direct debits, and making membership payments promptly your history will start to recover and you may then be more likely to be accepted for a credit card.
Q: ‘Will my student loan/grant be considered as part of my income?’
A: Some credit card companies will want to see that you have a regular income before they will approve you for an account and a student loan is not generally regarded as this.
Q: ‘Do I need a part-time job whilst at university to be eligible for a credit card?’
A: No, not necessarily. At aqua we treat every application individually and take a closer look at your situation to see if we can help, even if you do not have a part-time job. However, it’s important that you have the ability to repay your credit card bill each month – either in full or to make the minimum payment. A part-time job, or access to a regular income will make this much easier and means you are less likely to get into financial difficulty.
Are you a student in full or part time education and need a credit card? We might be able to help. Apply online for the aqua Credit Card
Typical 35.9% APR variable
Credit is available subject to status to UK residents aged 18 and over
aqua is a trademark of SAV Credit Limited, which is used by Bank of Scotland plc under licence. aqua credit cards are issued by Bank of Scotland plc. Registered in Scotland No. SC327000. Registered office: The Mound, Edinburgh EH1 1YZ. Authorised and regulated by the Financial Services Authority.
