There Are Disadvantages To Having A Credit Card As A Student However

Business, Financing.

The disadvantages of student credit cards - traditionally there have been two groups of people who have always found it very difficult to get access to credit cards. These two groups would have found it next to impossible to get approved for credit cards in the past.

These two groups are listed below: � People with no, or very little income. � People with negative credit histories. - however, nowadays it is becoming easier and easier to get your hands on a credit card and accordingly, these groups are finding it easier to get access to credit cards. As more and more players have entered the market, it is now possible for almost anyone to get a credit card. The reasons for this are that the competition in the UK credit card industry has increased dramatically in recent years. Many credit card providers from the US have entered the UK credit card industry while at the same time, there are internet and other non traditional providers who are also all fighting for a share of the lucrative UK credit card market. What this means for students is that while in the past they may not have been able to get their hands on a credit card, it is now relatively easy for them to do so. As a result they are willing to lend to more and more people who in the past would have been regarded as simply too much of a credit risk.

This has many advantages for students as it means they have a means of paying for goods and services online that do not accept the more common debit cards that students have had to limit themselves to in the past. - there are disadvantages to having a credit card as a student however. The other main benefit of student credit cards is that they can use them while abroad travelling and this no doubt is a welcome convenience for the student population. The main disadvantage is that it is very easy to get into credit card debt very quickly. At the same time, with interest rates among the highest in the lending industry, any student who does rack up a high credit card debt will find the debt increasing rapidly at such a rate that it will surely be unmanageable without drastic steps. Frequently the spending limits on student credit cards are thousands of pounds and any student who spent all of this would be finding it very difficult in deed to get the money paid off.

The other disadvantages of student credit cards are dwarfed by the risk of getting into debt problems and therefore, if you think there is any chance that you will not be able to handle the responsibility of a credit card and keep your spending under control, then probably a student credit card would not be the best idea in your current circumstances. - this would enable you to build up a healthy credit record, so when you are finally ready to apply for a better credit card that comes with better offers, there is a higher chance that your application will be successful. Please remember, using a student credit card is not always a bad idea, taking out a student credit card at a time when you have no previous credit record may be a good idea.