Student Credit Cards - II

If you decide a credit card is right for you, with so many cards to choose from it is crucial that you think about what you want from a credit card and how you intend to use it. Different cards suit different people’s needs.

The following list of top questions provides a guide to for a student for some of the things you should think about before deciding on a credit card.

1. Do I need a credit card? Can I afford it?

2. What do I want the credit card for?

Is it just to pay for things and not for credit at all? And, do you intend to pay off your balance in full every month? Credit cards can be very effective in helping you spread the cost of spending over a number of months – this may prove particularly useful during the first few months of university when you have heavy set up costs to deal with. You may also consider a credit card as a standby option in the case of an emergency.

3. What card features are important to me?

Check things like the interest rates — for purchases, balance transfers, cash advances and credit card cheques; the length of the interest free period for purchases; incentives and benefits such as cashback, rewards or loyalty points; being able to manage your account online; using your credit card when you are abroad.

Once you know what kind of credit card you want and how you intend to use it:

4. Make a shortlist.

When you know what you are looking for, talk to card companies, look online, look at the Summary Box for each credit card and make a ‘top five’ list of credit cards that are right for you.

5. Compare cards.

Get a copy of the Summary Box for the cards on your shortlist. Have a look at all the different features and decide which card is most suited to your needs.

6. Review the terms and conditions.

Make sure you have read, in full, the terms & conditions of the credit card that you decide to apply for. This is important to ensure that you fully understand your responsibilities and obligations.

7. Apply for a card.

You can apply for your card in person, on the phone, by post or online. Remember, you need to be completely truthful in your application. As part of the application you will sign to indicate your acceptance of the terms and conditions.

8. The card company’s decision.

Your card company will run some credit checks on you and look at your application form and any
past payment behaviour before deciding if you are eligible for a credit card. If more than one interest rate is available for a credit card, the card company will decide which rate and credit limit are appropriate, depending on what they think you can afford to pay back.

9. Receiving your card.

Some issuers may require you to activate your card before you can begin using it. If on receipt of your card
you decide that the credit is not for you then you should immediately contact the card company and ask to cancel the agreement.

10. Tidy up loose ends.

If you’re transferring a balance from another credit card or closing an old account remember to check that any regular or recurring payments have been cancelled or moved from your old credit card.

Previous Article: Student Credit Cards - I