Everything you need to know about student credit cards
Credit cards can give you flexibility with your spending, help you clear debt more easily, build your credit profile and earn rewards. Some cards are even designed specifically for students.
Key takeaways:
Student credit cards often have lower credit limits and higher interest rates (annual percentage rates) than standard cards
Managing student credit card repayments responsibly helps build your credit score
Some cards offer cashback, loyalty points, or discounts on railcards and typically don't charge an annual fee
You may still be able to get a student credit card with bad credit, but expect lower limits and higher rates due to perceived risk
A credit card allows you to borrow money to pay for goods and services, offering a convenient way to manage your spending. You agree to repay the card provider the amount you owe at a later date, either in full or through monthly payments. However, if you don’t clear the balance quickly, interest charges may apply, increasing the total cost of what you’ve borrowed.
Credit cards can provide a number of benefits for students, such as flexibility with spending, help with budgeting and building a credit history – which will help for later in life, including when it comes to getting a mortgage.
Used wisely they can be a useful asset and you can even make them work to your advantage by gaining cashback and loyalty points. But credit cards also come with risks - your debt could start to grow and interest charges can be high if you don’t pay off what you owe.
What is a student credit card?
A student credit card is simply a credit card tailored for students who might not have a regular income from employment.
Given students are in education, they often don’t earn a great deal, but many students would also like the flexibility and benefits that credit cards bring.
As such, providers still offer credit cards for students but manage the risk they won’t be repaid by offering lower spending limits and charging higher interest rates than standard credit cards.
MoneySuperMarket data for shows how much more expensive a student credit card could be if the balance isn’t cleared in full each month. The average representative APR - or interest rate - for a student is 34.3%
Just as with standard cards, the best student credit cards could also offer cashback and rewards, introductory periods for purchases, be designed for spending overseas, or allow balance transfers to help manage existing debt.
Differences between student credit cards and regular credit cards
Student credit cards are designed for people in full-time education with little or no credit history. While they are quite similar to regular credit cards, there are some important differences:
Lower credit limits: Sometimes student credit cards have credit limits as small as just a few hundred pounds, while regular credit cards tend to offer far greater credit limits depending on income and credit history.
Higher interest rates: Interest rates for student credit cards tend to be higher than regular credit cards.
Simpler rewards: Regular credit cards can come with all sorts of rewards, including cashback, travel points, and balance transfer offers. Student credit cards typically offer ewer rewards and perks.
How do student credit cards work?
A student credit card is often your first credit card, so you may not be familiar with the process. The good news is that it is generally quite straightforward. Here’s how it works:
1. Find the card you want: Not all credit cards are the same, so it’s worth comparing what’s available to you. MoneySuperMarket can help here by showing the key features of each card and our eligibility checker helps make sure you won’t be turned down when you apply.
2. Apply for a student credit card: Fill out an application with the credit card issuer online, providing necessary personal and financial information, such as your name, address, and student status.
3. Receive approval and card activation: Once your application is approved, you’ll receive the credit card in the mail. Activate the card by following the instructions provided, which may involve calling a specific number or activating it online.
4. Use the credit card for purchases: Use your student credit card to make purchases both online and in-store. Keep track of your spending to ensure you stay within your credit limit.
5. Make timely monthly payments: Each month, you will receive a statement detailing your credit card activity and the minimum payment due. It's important to make at least the minimum payment by the due date to avoid late fees and damage to your credit score.
6. Pay off the balance: To avoid interest charges, pay off the full balance each month. If you carry a balance, interest will be charged on the remaining amount, which can quickly accumulate if not managed properly. If you can’t pay it off in full, aim to pay more than the minimum payment to reduce the overall balance and save on interest charges.
Am I eligible for a student credit card?
Being a student doesn’t necessarily mean that getting a credit card is out of the question. Provided you have enough money coming in to clear your spending each month, a lender may approve you for a credit card.
According to MoneySuperMarket data from the past 3 months, 34%
It includes credit cards designed specifically for university or college students who don’t yet have the credit score and income to be approved for a standard credit card.
There are some eligibility criteria you’ll have to meet to be able to open a student credit card:
• Be aged over 18
• Be a UK resident
• Studying a course at a UK university, either full-time or part-time
If you’re looking to get a credit card as a student, the most important thing is to use it carefully. Debt can escalate quickly if you can’t repay your card in full each month and interest charges start to mount up.
What do I need to consider before applying for a student credit card?
Be confident you’ll be able to repay what you spend on it every month. Otherwise, any of the benefits you enjoy by using it could be wiped out because you’ll start to fall into debt and incur interest charges.
Check your credit rating and look at ways you may be able to give it a boost. As a student, you may not have borrowed previously and haven’t had time to build up a credit score. However, checking there are no mistakes on your credit report and seeing what steps you can take to improve it, could help you secure a better credit card deal.
Think about what type of credit card would best suit your needs:
Rewards credit cards give you cashback or points on eligible spending. But terms vary between different card deals and some are linked to specific retailers or provide loyalty points that can only be spent in certain places
A 0% purchase credit card might allow you to spend without interest for a grace period without having to repay
A 0% balance transfer card could allow you to shift debts from elsewhere onto it and give you time to pay it off interest-free. With all borrowing though, the money will have to be paid back eventually
A travel credit card could be beneficial if you want to spend time overseas. These tend to have low or no fees on card usage abroad
What are the most popular types of credit cards for students?
Of all the types of credit cards available through our site, it's credit builder credit cards that are the most popular with students, according to MoneySuperMarket enquiry data from the past 3 months, making up 54%
This is largely due to their more generous acceptance criteria, which means that people with low or no credit scores are still likely to be approved for a credit builder card, albeit with lower credit limits and higher APRs.
Card type | Percentage of MoneySuperMarket enquiries |
|---|---|
Credit Builder | 54% |
Purchase | 20% |
Reward | 7% |
Balance Transfer | 10% |
Balance Transfer and Purchase | 8% |
Travel | 2% |
What are the pros and cons of a student credit card?
There are a number of reasons you may wish to get a student credit card.
Advantages
Interest-free period: Some providers offer an interest-free period for a limited time for purchases – normally a few months, giving you some time to pay off the balance. But make sure you know when this period ends so you pay off the outstanding amount, or interest charges will mount up.
Protection on purchases: A student credit card will offer the same level of purchase protection as standard credit cards. Under section 75 of the consumer credit act you’ll be covered if you buy goods worth between £100 and £30,000 if they fail to turn up, are not as described, or the company goes bust.
Build your credit score: Managing your student credit card repayments can help you build your credit score, particularly if you haven’t taken out credit before and have a limited borrowing history. This can make it easier to get credit cards, loans and even a mortgage in the future.
Rewards: Some providers offer rewards when you spend, including cashback, loyalty points or cheaper railcards. Used wisely, you can make a student credit card work financially for you.
No annual fee: Credit cards designed for students typically won’t charge an annual fee.
Spread the cost of purchases: You can pay for large purchases up front and spread the cost by paying back the money you borrowed in monthly repayments. However, unless your card is within its interest-free period, you will likely end up paying more in interest.
Higher chance of approval: While you are studying, you may find it’s easier to get a student credit card than a standard credit card.
Disadvantages
Potential high interest rates: Student credit cards can have higher interest rates than standard credit cards. It means you’ll end up paying more if you don’t clear your balance each month.
Lower credit limits: You’ll typically have a low credit limit on a student credit card. But this is a way to protect you from overspending and getting into debt.
Fees: As with regular credit cards, you will most likely be charged a fee if you use your student credit card to withdraw cash from a cash machine, if you make a late repayment, if you go over your credit limit or if you use your card abroad.
Rejected applications can affect your credit score: If you don’t meet the lender’s borrowing criteria for a student credit card, a rejected application could harm your credit score.
How to apply for a student credit card
Check your eligibility
Before applying, make sure you meet basic criteria: you’re 18 or over, a resident of the UK, and enrolled in a university or college. Lenders will want some proof of income or regular payments, which could include part-time work, parental support, or other regular funding. Use a free eligibility checker to see which student cards you"re likely to be approved for, so that you avoid unnecessary credit checks that could hurt your credit score.
Compare student credit card deals
Look at features like interest rates (APR), credit limits, any 0% purchase or balance transfer deals, fees, and rates after any introductory period ends. Make sure the card you pick is realistic for you to manage.
Apply
When applying double-check all your personal and financial details. Typically you will need to provide:
Your full name, address, and date of birth
Proof of student status (e.g. university enrollment)
Evidence of income or financial support
Details of your existing financial commitments (like rent, bills, other debts)
Most applications are processed within a few days.
Activate and use your new student credit card responsibly
Once it arrives, activate your card, but before using it, set up alerts or a direct debit to make sure you never miss re payments. Try to pay off the balance each month to avoid interest charges.
Frequently asked questions for student credit cards
From applying with bad credit to getting a student credit card with no income, we answer all your key questions...
How do I use my student credit card?
A student credit card can be used in the same way as a debit card – you’ll be able to pay for things in the usual way such as contactless, chip & PIN or online. As well as the physical card you may also link the credit card to pay through a device, such as a mobile phone.
The difference with credit cards, compared to a debit card, is that you are spending money you don’t yet have. This means it’s important to keep an eye on your spending (you’ll have a credit limit you can spend up to) and make sure you pay it off when instructed.
If you don’t pay it off in full by the given date every month, you’ll start to incur interest on the debt balance. Forget to pay anything or miss the minimum monthly repayment and you’re likely to be charged a fee. This is why it’s good to set up an alert as a reminder, or better still a direct debit to clear what you owe.
Some students only use their credit card for emergency purchases and then clear the balance as quickly as possible. Others might use it for their regular spending, particularly if it offers rewards – again clearing in full each month. Either way, stay on top of your account to make the most from it.
Can I get a student credit card without any income?
You may not need to have a job to get a student credit card, but you’ll often need to show you have a regular income that doesn’t include your student loan. This could be monthly payments from your parents or a salary from a part-time job, for example.
Student loans tend not to count as income because if you used it to pay off a credit card, this would just be one form of debt paying off another.
Can I get a student credit card with bad credit?
You may be accepted for a student credit card with a bad credit score or impaired credit history, but you’re likely to be given a lower credit limit and face higher interest rates. This is because the card provider will deem you as being of greater risk.
Credit card providers take into account your credit rating when they issue a card, and this helps them decide how much credit they are prepared to extend to you.
The good news is that there are ways you can increase your credit score. These include registering on the electoral roll, shutting down unused credit accounts and checking your current rating and fixing any errors.
What are the alternatives to student credit cards?
An alternative to a student credit card would be a student bank account with an overdraft. Most student current accounts offer 0% interest and fee-free overdrafts.
How much you can borrow on your overdraft will depend on how far you are through your studies (what academic year) and your personal and financial circumstances.
What happens to my student credit card after I graduate?
You’ll still be able to use your student credit card once you graduate.
But if you’ve managed your student credit card well you may be able to get a credit card that offers a lower interest rate, 0% interest on purchases or balance transfers, cashback or rewards.
Once you have a job with a regular salary you’re likely to have a much wider choice of credit cards.
Can I get a student credit card with no credit score?
You may be accepted for a student credit card with a bad credit score or impaired credit history, but you’re likely to be given a lower credit limit and face higher interest rates. This is because the card provider will deem you as being of greater risk.
Credit card providers take into account your credit rating when they issue a card, and this helps them decide how much credit they are prepared to extend to you.
The good news is that there are ways you can increase your credit score. These include registering on the electoral roll, shutting down unused credit accounts and checking your current rating and fixing any errors.
What are the alternatives to student credit cards?
An alternative to a student credit card would be a student bank account with an overdraft. Most student current accounts offer 0% interest and fee-free overdrafts.
How much you can borrow on your overdraft will depend on how far you are through your studies (what academic year) and your personal and financial circumstances.
Personal Finance & Insurance Expert
Our expert says...
“Being a student often means juggling your finances and while you should always be wary of taking on more debt, used wisely a student credit card can offer advantages such as protection on purchases, loyalty points or rewards and a head start in building your credit rating for when you graduate.
"However, always be confident you have enough money available to clear your balance on time each month, or any benefits will be quickly wiped out.”
Compare student credit cards with MoneySuperMarket
You can compare a wide range of credit cards using our eligibility checker tool. Select what you want to use the credit card for and fill in a few details about yourself and your finances, including any part-time salaries or regular income you receive from your parents. You’ll then be able to compare the credit cards you could get as a student.
Using the eligibility checker to search for the best student credit cards won’t affect your credit score. But if you make an application for a credit card with a provider and you’re rejected, it can affect your rating.
If you have a student current account, your provider may also offer credit cards to eligible account holders so you can also see what deals it may be prepared to offer you and apply directly through them.
MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead, we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.
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Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
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Jonathan Leggett
Former Senior Content Editor
With over 15 years of experience in online content and journalism, Jonathan is a former MoneySuperMarket’s editor at large and works across our Broadband, Mobiles, Energy and Money channels. Along...
