Student Credit Card UK: 08 Options, See Card Benefits and Costs

When university life begins, worries about money seem to grow and then a Student Credit Card UK is required.

Now, how to choose from so many Student Credit Card UK? There are a variety of alternatives, but we’ll help you with that. We filtered them all and came up with the 8 best alternatives.

We’ll explore each of the Student Credit Card UK in detail, focusing on how these products can be useful for those just starting to build their credit history. Let’s go!

How Does the Student Credit Card Work in the UK?

The main function of a student credit card in the UK is to help in building a credit history.

And this credit building will help you get loans in the future, such as for a car or even a house. This means that when you are approved for a card.

Thus, you have the chance to start preparing for financial adulthood.

Top Student Credit Card UK Alternatives

1. Vanquis Credit Builder Card

Vanquis Banking Group, which originated from Provident Financial, is focused on credit for customers with limited or negative financial history.

Founded in 1880 and rebranded in 2023, the group has a long tradition of helping people with credit difficulties.

Incidentally, the Vanquis Credit Builder Card offers the opportunity to establish a credit history, an important benefit for students and those with no financial history.

With a credit limit between £250 and £2,500, the card has a representative interest rate (APR) of 37.9%, which is high, but valid for those who need credit.

2. HSBC Student Credit Card

Founded in 1865, HSBC is one of the most renowned banks globally and offers the HSBC Student Credit Card.

It is certainly an excellent option for students who already have a checking account at the bank.

With a credit limit of up to £500 and a representative interest rate of 18.9% (variable), this card is a good alternative for those who want to build their credit history responsibly.

This card is focused on those who already have a relationship with the bank and are starting their financial journey.

4. Lloyds Bank Student Account (Student Credit Card UK)

Although Lloyds Bank offers a popular checking account for students, the bank does not make credit cards available to this audience.

This is due to an internal risk policy that restricts the offer of credit to customers with proven income and financial history.

However, Lloyds has interesting benefits in its student account, such as overdraft and access to basic banking services, which may be more affordable for students without a regular source of income.

Despite this, the bank offers alternative credit solutions with the checking account, which can be a good choice for those who want to avoid high interest rates associated with credit cards.

5. Santander Student Account

Santander, despite being a popular option, has a basic checking account for international students, but does not offer specific credit cards for this audience.

This approach reflects the bank’s strategy of focusing on checking accounts and basic banking services for students.

For international students, credit options are limited, and Santander prioritizes access to simple checking accounts, with benefits such as fee exemption on international transfers.

6. Vanquis Credit Builder Card

Vanquis Credit Builder is an interesting option for those looking to establish a credit history.

Its main benefit lies in the opportunity to build a strong financial history. Especially for those without or with a limited credit history.

Interest rates of 37.9% are high, but the card is one of the only credit-building options on the market.

The ability to increase the credit limit over time is an advantage. As it is a student who is starting to create their financial life.

8. NatWest Student Credit Card

The NatWest Student Credit Card attracts many customers, owing to the cashback benefits and discounts at various stores.

However, the requirement of a minimum annual income of £10,000 makes it difficult for many students to obtain the card, limiting its affordability.

In addition, the APR of 12.9% is still relatively high. Which can be a problem in case the student is unable to pay the full balance each month.

How to Avoid Pitfalls When Using a Student Credit Card?

Okay, so you have a student credit card and now, how do you avoid getting into debt? Here are some tips to avoid problems:

1. Pay the invoice in full: This prevents you from accruing interest on the outstanding balance. Whenever possible, pay the full amount of your bill before it is due to take advantage of the interest-free period.
2. Do not make cash withdrawals: Using your credit card to withdraw money is a common and very expensive mistake. This can affect your credit history negatively, as well as charge you additional fees.
3. Be mindful of the credit limit: Use only a small portion of the available limit. This helps keep your financial profile healthy and improves your credit score.

Conclusion (Student Credit Card UK)

At the end of the day, a student credit card in the UK is a strategic opportunity to lay a solid foundation for your financial future.

Many people mistakenly view these cards as an immediate solution for consumption, but they should not be seen that way. But rather, as a means of creating and consolidating a credit history that will be essential in obtaining future loans. Such as for the purchase of a car, real estate or even for telephone contracts.

Whatever the choice, responsibility in the use of credit is the only way to build a positive financial history and ensure that future financial life is stable and prosperous.

In the end, the credit card should help you and not harm you. So be very careful when using it so as not to compromise your quality of life and especially your mental health.

Other cards highly recommended for students are credit cards rewards UK especially if you’re a student from another country, as you can use the card to earn miles and save money. It’s worth exploring these options.