student credit card

daven1986 · 4 Sep 2006 at 20:00

Hi guys, I am a student with only summer holiday income and student loan. I have a few questions.

My mum and my girlfriends mum have both said that it is a good idea to get a credit card as there are some things you need one for, e.g. holiday things.
Is this virgin credit card any good?
http://uk.virginmoney.com/credit-card-v3/more-info.html

Also how do I pay it off, if I were to purchase something on it, would I then have 59 days to then pay for it before I was charged interest? Also is it worth using a credit card to buy something over the long term (this is not what I would use it for, but im curious).

When they ask me my income, should I just put my student loan amount as my holiday income is not fixed?

thanks

daven

penski · 4 Sep 2006 at 20:05

I'm a firm believer of living within your means. If you can't afford a holiday without getting into debt, take a cheaper holiday.

*n

ScarySquirrel · 4 Sep 2006 at 20:07

My advice after struggling for a few years (and still now) trying to pay off a credit card.

Don't get one.

SiriusB · 4 Sep 2006 at 20:10

Student credit cards usually have a small credit limit - for example my Barclaycard has only a 500 quid limit. So it quite hard to get into serious debt.

I use my credit card only for places that don't accept Switch/Maestro. I also have a direct debit set up to take the full amount each month. Quite handy really as it stops me from spending more than I can afford and also means I pay no interest.

SiriusB

Grrrrr · 4 Sep 2006 at 20:13

If i were you i'd do everything and anything possible to go without a credit card

^TANK^ · 4 Sep 2006 at 20:15

Grrrrr said:
If i were you i'd do everything and anything possible to go without a credit card

Best advise yet, who wants money round there neck.

Posty · 4 Sep 2006 at 20:16

Nothing wrong with having a credit card, i have one and put nearly everything i buy on it but also pay it off every month

daven1986 · 4 Sep 2006 at 20:19

i agree i never wanted a credit card, however you HAVE to have it for some things such as hotel bookings often require one, car hire, in the US you need one. I would never go into debt over it, as I would aim to pay it off very quickly, and in full each month.

My thoughts are if you get stuff like bonus points or airmiles then you just use your credit card and pay it off immediately, and you get a bonus.

But it has made me reconsider.

thanks

daven

jon86 · 4 Sep 2006 at 20:31

I used to use my debit card for everything (rubbish VISA Electron) until I realised I needed 'proper' VISA to make purchases from USA (like music CDs and DVDs) and I could not get a VISA Debit card from my bank. I applied for a Student Barclaycard and was given a £450 credit limit. Besides not having to pay back the money spent for up to two months later, it is good to know that credit card purchases are protected under the the Consumer Credit Act, which means you have a *lot* more protection against fraudsters. I had to make a dispute on a purchase a while ago and it was sorted out very quickly.

I have Direct Debits set up to pay the balance of both of my credit cards in full so interest is never accrued. Also, I heard that you can improve your credit rating a bit by doing that. Does anyone know?

I would recommend getting a credit card if you can be quite strict with what you spend. I would not use a credit card to borrow money though. I would have thought it would be cheaper to get a loan?

daven1986 · 4 Sep 2006 at 20:48

yeah you do improve your credit rating doing that. it sounds like a good idea, so i will look into it more and give it a shot.

thanks

daven

[TW]Fox · 4 Sep 2006 at 21:10

ScarySquirrel said:
Don't get one.

Alternatively, get a grip.

Get a credit card - they are very useful for use abroad and buying online, as you get additional protection and insurance.

Worried about debt? Simply set your monthly direct debit to the full balance of the card and only buy what you can afford.

Simple.

daven1986 · 4 Sep 2006 at 21:23

[TW]Fox said:
Alternatively, get a grip.

Get a credit card - they are very useful for use abroad and buying online, as you get additional protection and insurance.

Worried about debt? Simply set your monthly direct debit to the full balance of the card and only buy what you can afford.

Simple.

exactly what i was thinking of doing. thanks for the advice. have been looking at the virgin card and the morgan stanley buy and fly card.

http://www.morganstanleycard.co.uk/uk/data/card/eagle/eagle.html

any views on these?

thanks

daven

Pudney · 4 Sep 2006 at 21:30

daven1986 said:
exactly what i was thinking of doing. thanks for the advice. have been looking at the virgin card and the morgan stanley buy and fly card.

http://www.morganstanleycard.co.uk/uk/data/card/eagle/eagle.html

any views on these?

thanks

daven

Quite honestly, if I were you and I decided to get a credit card I'd get one of the cashback cards. Much more use, and as long as you can afford to pay the card off in full each month prob your best bet.

Nazbit · 4 Sep 2006 at 21:37

Credit cards can be very useful, I use mine in places where I cant use my debit card or online for the added security on sites that I dont use regularly.

I have a direct debit setup so that the full amount is taken every month, and I only buy what I have the money to pay for.

[TW]Fox · 4 Sep 2006 at 21:37

Check out the advice at http://www.moneysavingexpert.co.uk.

I took their advice and went for a GE Money card, 0% for 12 months and a ridiculous credit limit (Although of no concern if you simply buy what you can afford).