Best credit card for student?

Barks · 8 Mar 2009 at 02:26

FrostedNipple said:
i have a 3k overdraft and it went straight into an ISA. It is not free money, but it is a free loan, you may as well take advantage. Also I have a year after I leave uni to pay mine off. If you are not capable of handling money responsibly at 18 then you shouldn't be at university.

I do exactly the same as you. That's a bit of a sweeping statement because I don't know anyone else who does that. Most of my mates will finish term with about £10 to their name, but also many assets (trainers, TVs, DVDs, fatty liver disease etc) acquired using their student loan and overdraft facility.

Girth, I agree with your point but overdrafts of that scale are hardly an incentive to prevent students from splashing their cash.

FrostedNipple · 8 Mar 2009 at 02:29

scott212 said:
I do exactly the same as you. That's a bit of a sweeping statement because I don't know anyone else who does that. Most of my mates will finish term with about £10 to their name, but also many assets acquired using their student loan and overdraft facility.

Well I'm not going to finish uni with anything to my name. But I am trying my best to minimize my total loan as much as possible. What do you mean by assets?

Johnny Girth · 8 Mar 2009 at 02:31

scott212 said:
Girth, I agree with your point but overdrafts of that scale are hardly an incentive to prevent students from splashing their cash.

True, but in my experience (things may be different now) you only got as much as £2750 in your third or fourth year at university i.e. when you are most likely to need the money. It used to be graduated so that you worked from around £1000 up to the maximum but I'm not sure if that's still the case.

Barks · 8 Mar 2009 at 02:32

FrostedNipple said:
Well I'm not going to finish uni with anything to my name. But I am trying my best to minimize my total loan as much as possible. What do you mean by assets?

I meant it in a jokey way but edited my post since your quote. See above.

That is certainly the way to go but for many students university is not only about physical freedom but financial freedom. Suddenly you have access to, in many cases, almost £5,000. A lot of people are foolish with it. Whilst many students need this money to pay for rent, the ones who come from sheltered "daddy's little girl/boy" tuition-fee/rent-paid backgrounds tend to be the ones who blow it all very quickly.

FrostedNipple · 8 Mar 2009 at 02:35

Johnny Girth said:
True, but in my experience (things may be different now) you only got as much as £2750 in your third or fourth year at university i.e. when you are most likely to need the money. It used to be graduated so that you worked from around £1000 up to the maximum but I'm not sure if that's still the case.

It is unless you make a couple of phone calls saying how you fear you may be receiving large bill for accommodation etc, you then transfer the value of the extra overdraft you have been given from your account to another account, then from that account to your ISA. If they ever ask why you transfer to a different account instead of direct from the first account, it is because you prefer the design on the debit card

This might possibly be fraud I'm not sure though.

FrostedNipple · 8 Mar 2009 at 02:38

scott212 said:
I meant it in a jokey way but edited my post since your quote. See above.

That is certainly the way to go but for many students university is not only about physical freedom but financial freedom. Suddenly you have access to, in many cases, almost £5,000. A lot of people are foolish with it. Whilst many students need this money to pay for rent, the ones who come from sheltered "daddy's little girl/boy" tuition-fee/rent-paid backgrounds tend to be the ones who blow it all very quickly.

Well university life is hardly real life. It's still too sheltered. They shouldn't give out 0% malarkey really, although I am happy they do

I think i live like any normal student. I am able to buy 'good' food, i can go out socialising and can afford beer, and i have no need for any extra loans other than what the slc and government dish out. Then again i'm doing a maths course so maybe i'm prone ot being better with money seen as i just see it as numbers on the online statements lol

Johnny Girth · 8 Mar 2009 at 02:43

FrostedNipple said:
It is unless you make a couple of phone calls saying how you fear you may be receiving large bill for accommodation etc, you then transfer the value of the extra overdraft you have been given from your account to another account, then from that account to your ISA. If they ever ask why you transfer to a different account instead of direct from the first account, it is because you prefer the design on the debit card This might possibly be fraud I'm not sure though.

Heh, it isn't likely to be fraud and it's a good idea. Sadly I expect that most students would look to abuse the banking system reckless purposes rather than prudent saving. There was some program on the BBC about how students had essentially defrauded the banks out of £1000s and then the program had the nerve to blame the banks for the students being in debt...as if their failure to prevent the fraud was in some way worse than the actual committing the fraud in the first place. You don't rob a shop and then try to lay the blame on the shop for failing to prevent your robbery.

I'm always surprised at the number of people who turn down interest free loans or 0% money because they don't think they can handle their finances properly. I've always just seen it as you do - interest on money that I wouldn't otherwise have. I think this kind of attitude towards money needs to be instilled amongst more young people though.

FrostedNipple · 8 Mar 2009 at 02:50

Johnny Girth said:
Heh, it isn't likely to be fraud and it's a good idea. Sadly I expect that most students would look to abuse the banking system reckless purposes rather than prudent saving. There was some program on the BBC about how students had essentially defrauded the banks out of £1000s and then the program had the nerve to blame the banks for the students being in debt...as if their failure to prevent the fraud was in some way worse than the actual committing the fraud in the first place. You don't rob a shop and then try to lay the blame on the shop for failing to prevent your robbery.

You might if the shop left its cashtill open on the door mat to the shop completely unguarded. Which is kind of what the banks are doing. As has been said earlier, being exposed to this sort of money which for quite a lot of people may even be their first bank account, so while you could see the banks as being irresponsible essentially......

I'm always surprised at the number of people who turn down interest free loans or 0% money because they don't think they can handle their finances properly. I've always just seen it as you do - interest on money that I wouldn't otherwise have. I think this kind of attitude towards money needs to be instilled amongst more young people though.

......education is needed. In gcse's i had RE and Citezenship, both a waste of time and could be better filled with life information, teaching people about how real life is going to work. I was never taught at school how to make a CV, after middle school i was never required to write a letter, never been taught interview techniques, there is probably dozens more usefull things that could be taught.

FrostedNipple · 8 Mar 2009 at 03:00

Also to bring this thread somewhat back on track....
http://www.barclaycard.co.uk/personal-home/cards/student/index.html

A2Z · 8 Mar 2009 at 07:11

Ive currently got a Natwest Student credit card, got it a couple years ago no problem, im now on a Graduate account.

Im kind of thinking to get a proper credit card too, the £500 limit is a bit poor If i want to make a big purchase, and I always repay it in full. Now I've finally got a full time job I could probably get a decent one, but trying to find one with cashback/extra stuff!

NeoVo · 8 Mar 2009 at 10:39

Natwest.

Up to £1250 0% o/d in first year, increases by £300 each yeah but you obviously dont have to take it.

Got a free microsoft webcam!!!!!! :/ and a student rail card for five years (£125's worth).

Skull · 8 Mar 2009 at 10:53

I got a Natwest credit card, but the £500 limit is a pain, especially at the moment because I'm wanting to buy plane tickets. As such I'm just waiting for a Capital One card to be delivered to my house. It has a £2,500 limit, no fees etc, so it's perfect for me. The APR is 34% though!! It's no problem for me because I have the cash already, I just want the extra protection of the credit card.

purexxevil · 8 Mar 2009 at 10:56

hmm well obviously I'd actually say as a student don't bother with a credit card really :S
Although i can see for big interweb purchases or the like, they're far safer than debit cards and you generally have a far greater level of protection, so meh whatever.

But I'm pretty sure you will at some point have to mention you're a student and then hey really limit the amount you can spend, which is kinda against the whole point that you'd want one really :S

My boyfriend has applied for a halifax one, but again thats only a £500 limit.

What about somewhere like capital one maybe?
I know they were really good for my dad, even when we had loads of fraudulent activity with Americans buying Mcdonalds stuff on the copy of the card :S
They're protectiony stuff and all is really good

But im not sure how good they'd offer student cards...

Freefaller · 30 Apr 2009 at 07:28

Be honest to yourself, if you are able to pay it back and make sure you're not using it as a loan mechanism then fine, but if you start using it nonchalantly you'll get yourself into hot water.