Credit cards for students

If you’re a student, a credit card could help you manage your money during term time and in the holidays. Read on to find out how a credit card could work for you when used responsibly.

Representative
37.9% APR (variable)

What’s a student credit card?

A student credit card can help you start building credit while you’re at college or university. But it’s worth knowing they typically have higher interest rates and lower credit limits than other cards. This is because students are seen as higher-risk borrowers.

Used responsibly, student credit cards can help you start building credit early. This could lead to borrowing options with better interest rates down the line and improve your chances of being approved for things like car loans, mortgages and phone contracts.

Am I eligible for a student credit card?

To apply for credit in the UK, you’ll usually need to be living, working or studying here.

Students might not be in regular employment as they focus on their studies. But this doesn’t always mean applying for a credit card is off limits. Students may have some type of income which would allow them to manage a credit card and afford repayments.

Student credit cards are often designed so you don’t need a regular income from an employer. And there are credit cards designed for students who don’t have a credit history. Different lenders have different eligibility criteria you’ll have to meet. To qualify, you’ll mostly need to be:

Managing your money can be an important part of student life. If you can’t make your credit card repayments, you could get into debt and damage your credit score.

That’s why you should use your student credit card carefully. This includes making at least the minimum payment on time and not going over your credit limit.

Check your eligibility

If you’re a student and think a credit card may benefit you, Vanquis’ Credit Builder Credit Card could help you get started.

Representative 37.9% APR (variable)

_{Your APR and credit limit may vary based on your circumstances.}

How do student credit cards work?

A student credit card can be a useful way to manage your finances, letting you make purchases now and pay them off over time — as long as you use it responsibly.

Just like with a regular credit card, you can use your student credit card to spend money up to a pre-arranged credit limit. And if you pay the full statement balance each month before the due date, you won’t pay interest on your purchases.

As a student, you might not have an established credit history. This can make it harder for banks to tell whether you’re good at managing your money. Because of this, interest rates are often higher and credit limits lower on student credit cards, compared to those offered to people in full-time employment or with a strong credit history.

Student credit cards could be a flexible way to manage your finances, if used in the right way. We don’t currently offer a specific credit card for students. But you might want to take advantage of our Credit Builder Credit Card.

What are the benefits of student credit cards?

Some major banks and providers offer a credit card designed for students. These can often include helpful benefits like:

A low credit limit of around £250, designed to help you borrow safely.
Up to 56 days of interest-free purchases, giving you good flexibility.
The opportunity to build your credit history while studying. This is essential for any future borrowing, like mortgages, regular credit cards or loans.
Rewards, perks and special offers - like railcards, airport lounge access and discounts on a range of products. Although these benefits are a bonus, credit cards should still be used responsibly.

Finally, credit cards for students can help you develop good financial habits. This is especially true if you stay within your credit limit, regularly pay at least your minimum payment on time or pay off what you owe before interest is charged.

Finding the right student credit card

Just like with a regular credit card, it can be helpful to apply for a student credit card with the lowest APR (Annual Percentage Rate). APR is the rate of interest you’ll be charged on any purchase balance you haven’t repaid in full by the date it’s due. Just so you know, this may vary if your balance is made up of other transactions, like cash transactions or balance transfers.

Even if you plan to pay off your balance in full each month, it’s worth remembering that finances can be unpredictable – especially when you’re a student. The lower the APR, the more manageable it can be to repay any interest you’re charged.

Also keep in mind how many days of interest-free credit you get on purchases. This can usually be up to 56 days from when you bought the goods or service. It does vary from provider to provider though and it depends on when the purchase was made.

Some student credit cards come with a mobile phone app that sends you regular reminders about your repayment date, as well as how much you need to pay. These can be helpful when trying to keep on top of your finances.

It can be a good idea to check your credit score before you make an application. As a student, you may not have a credit score yet. But if you’ve ever defaulted on a loan or missed a bill, this could impact your chances of being accepted.

Can a student get a regular credit card?

Yes, students can get a regular credit card – but it might be harder than getting one that’s designed specifically for students.

With regular credit cards, lenders often carry out stricter checks on your income and credit history before deciding your interest rate and credit limit.

Because students don’t always have extensive credit histories or substantial income, getting approved on a regular credit card (that typically has lower interest rates and higher credit limits than student cards) could prove difficult.

Tips to consider when managing your student finances

Managing your money can be an important part of student life, and it all starts with setting a budget for the term.

Your budget could consider your loans and any savings or income you have, minus your tuition fees, rent, mobile phone bills and any other regular essential outgoings. The amount left over might then need to cover your food, transport and other expenses for the rest of term.

Any borrowing you agree to, including a student credit card, needs to be managed responsibly. If you can’t repay what you owe, you could get into more debt. This could then damage your credit score.

Frequently Asked Questions

Do student loans affect my credit score?

Student loans aren’t subject to a credit check and don’t appear on your credit file. In the UK, they’re offered by a non-profit organisation called The Student Loans Company, which doesn’t base its decisions on income or credit history. This is also true if you’re an older student taking out an Advanced Learner Loan.

Which student credit card should I get?

The best student credit card for you depends on your situation and how you’ll be using the card.

Take the time to research and compare a few different options from the major banks. And pay special attention to the APR and any penalty clauses.

Can I withdraw cash using my student credit card?

While it’s possible to withdraw cash from most credit cards, this could negatively impact your credit score.

Lenders are likely to let the credit reference agencies know you’ve used a credit card to withdraw cash – this could then reflect poorly on your credit file. It often comes with an additional fee and a higher rate of interest, so it might be worth checking your terms and conditions and considering other options first.

Can students get a credit card without an income?

In short, yes.

Compared with mainstream credit cards, the income criteria for student credit cards are usually more relaxed because you’re in full-time education. These products don’t normally need you to have an income because they’re designed specifically for students.

If you do have an income, you might want to consider looking at a non-student credit card. You might find this could offer better terms and conditions. For help with this, see our guide to applying for first-time credit.

Can I get a student credit card with bad credit?

Although you can get a student credit card if you have bad credit, it’s important to note you may be offered higher interest rates and lower credit limits because of your financial situation.

Although hard or soft credit checks will usually reveal if you’re eligible, be sure to read the terms and conditions when it comes to using the card. Before signing up to a card you’ve been offered, it might be worth making sure you’re comfortable with the repayments.

What happens to your student credit card after graduation?

If you’re responsibly enjoying the benefits of your student credit card and want to keep it when you graduate, many reputable banks and lenders may automatically move your student credit card onto a normal credit card. Often with the same, or a similar, credit limit and interest rate. But in most cases, that will be your decision to make.

As our Vanquis Credit Builder Credit Cards are not just for students, it’s unlikely your graduation would impact your access to the card.

This means you can keep using your credit card responsibly and building your score, without the stress of reapplying or worrying about your credit ending.