It’s a hard life being a student. Gone are the days of being able to study forever, being paid by the government to acquire an education. Students need money to survive and to pay for their degree, particularly with rising tuition fees. Generally, in order to be able to eat more than just beans on toast, a student will have to apply for a student loan, get a part time job and find some other form of finance. However, in the current economic climate, it is more and more difficult to get any form of credit. So what is a student to do?
Best credit card deal for Students
There are many different types of credit available, but the most commonly used ones are loans and credit cards. Loans are generally for a substantial amount and are paid back over time. Credit cards tend to have a higher APR, but they are for lower amounts. Also, as soon as some of the money on the credit card is paid off (generally a minimum percentage of the total balance) the card can be used again or the balance will be extended. Students will hence regularly look for the top credit card deals, as well as student credit cards instant approval in order to find the best credit card deal.
Credit Cards for Students
Credit cards are generally easier to obtain than loans. However if you have a less than perfect credit score you may not be as eligible as you initially thought. Most students think their credit score is reasonable, because it is unlikely that they have defaulted on any payments in the past and have thereby obtained CCJs. However, there are other factors to consider with regards to credit scores. Some of things that influence a credit score include:
• Whether your name appears on the electoral roll, which is generally not the case with students.
• How long you have held a bank account. Again, generally not long with students.
• Monthly income, usually very low for students.
• Whether they have a home telephone line, which is unlikely for students.
• The amount of credit that is already on their file and that is being successfully paid. This is generally £0 with students.
The last point on the list is one of the most important ones. Lenders want to be able to see that previous finance has been adhered to, and if no finance has been had in the past, it is harder to receive a form of credit. Hence, most students will look at credit cards for no credit students, rather than credit cards for bad credit because their credit score is not so much bad as it is non-existent.
There are also some student credit cards with bad credit, but these are even harder to find. Students are a liability to lenders: they have no regular income, no prospect of regular income – at least not for a while yet – no fixed address and very little past details on financial behaviour. Unsurprisingly, students will regularly try to find alternative solutions because they struggle to get finance through a credit card.
