Why a student credit card?

Nearly every card issuer in the UK offers one or more student credit cards. The reason is simple - most college students don't have the established credit history or income to qualify for a standard credit card. Because you don't have a history of paying bills on time yet, the card companies have no way to predict whether you'll make your payments on time or not. That represents a risk for them. On the other hand, no history means no adverse credit history - and the majority of college and university students are good credit risks - they just haven't had a chance to prove it yet. Usually, a student credit card will carry both a higher rate of interest and a lower spending limit to minimize the loss to the issuing company if you should default (not pay the bill). The low spending limit is also a protection for you - it keeps you from going too deep into debt on that card. Things to Know When You Apply for a Credit Card Credit card companies don't lend you money out of the goodness of ...  more