Credit Cards for Students in the UK

by Mack Bartlett

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Students in the UK need to establish credit history as much as students in the US. Far be it from credit card companies in the UK to pass up on this lucrative market. Here is a quick review of three cards you could pick up while you’re away at university.

Barclaycard Student Credit Card

Barclaycard is a well known credit provider in the UK. Their student credit card offers some decent benefits, but before you apply they want you to fit a few qualifications:

• Credit history without major blemishes (as in bankruptcy or multiple missed payments on credit lines).
• You can’t be a current Barclaycard credit card holder.
• You have to have a permanent address in the UK.
• You have to be at least 18 years old, and you you have to be heading into college.

If you meet those requirements, you should apply and you’ll be entitled to some good benefits. They offer 20% discounts with certain retailers, 2 for 1 leisure vouchers (not sure what that is), and prize draws for cardholders.

Their interest rates are reasonable – coming in around 14.9%.

Graduate Barclaycard Credit Card

They’re looking for you to have all the same requirements as the normal student credit card, but they also want you to have at least 10,000 pounds annual income.

If you qualify, here are a few benefits:

• There’s no annual fee.
• They offer fraud protection.
• Purchase Delivery Protection which ensures your mail order or online purchases against loss or damage until they get to you.
• Online account management.
• Text notification of payment due dates (if you want them).

This isn’t a bad card for the graduating student to pick up as you leave college and enter the workforce.

Natwest Student Credit Card

A prominent UK credit provider gives students a great offer for what may be their first credit card. Here’s a brief summary of the benefits:

• Great discounts with online retailers.
• A grace period that may last as long as 56 days.
• Daily cash advance limit of up to 300 pounds.
• No annual fee.
• Use your card worldwide when you travel.

The final benefit I see is they offer a maximum credit limit of 500 pounds. This will keep you from getting yourself in trouble while you’re working toward your degree.

Which reminds me, I have a few recommendations for any student getting a credit card. The most important one is to understand what a credit card is, and what it isn’t. A credit card isn’t free money. They’re going to make you pay them back, and if you’re late or if you even carry a balance your best case scenario is paying high interest rates, you’re worst case scenario is paying high interest rates and high fees. Sounds good right?

It doesn’t have to go that way though. You can use the cards wisely and your credit card will be your best friend. Enjoy those rewards!