Credit cards can be a brilliant tool when used responsibly, however, use a credit card the wrong way and you are likely heading for trouble. As a student, funds are limited, and so while it is inevitable you will wish to get a credit card, it is important that you choose the right one for your personal circumstance.
Should you always go for 0% interest?
The answer is almost always yes, choose a 0% interest credit card. However, you must be aware that you are still mostly charged interest on cash withdrawals. It is also vital that you work out how and when you will pay this money back, and what the rate of interest will be after the 0% period ends.
Do you travel?
Perhaps you live overseas and make trips back to see friends and family at the end of each term, or perhaps you are just lucky enough to travel often. It may be the best deal for you to then get a credit card that rewards your spending with airmiles or another kind of useful point system that can be exchanged for travelling.
Do you need to make some big purchases?
It is worth noting that if you pay for items that cost more than £100 with your credit card, then under Section 75 you are protected should anything go wrong either due to a fault or the company folding before you get your item.
Do you have bad credit history?
If you are unfortunate enough to have bad credit history, you will likely find it difficult to be accepted for even a student credit card. There are credit builder credit cards out there however, but they do come with a higher level of interest, however it can sometimes be worth making a modest purchase and paying it off over a year to boost your credit store and go toward repairing any damage.
There are many great student credit card deals out there, all with their own perks of reward points and cashback. You do need to consider the long run the strategy you will take to paying back the money you borrow, be it on a monthly basis, or after the 0% period ends. It is important to know that using a credit card irresponsibly can result in your ability later on to get finance or a mortgage.