Moneyfacts: Student credit cards a 'last resort'

22 September 2006
According to a spokesperson for, students should only use their credit cards as a "last resort".

Michelle Slade from the financial website said that frequently students would automatically receive a credit card with their basic student account but frequently these represented substandard deals in the context of the entire marketplace.

Ms Slade also noted that many students should use their other forms of credit first before resorting to their 'flexible friend', as the rates for borrowing on plastic were almost always far higher than any supplied overdraft or loans facility.

"They become an expensive method of borrowing," she said of student cards, adding: "They are offered with a much reduced credit limit to standard cards to stop them getting into too much extra debt.

"Most student credit cards are quite basic although some do offer balance transfer and introductory purchase deals."

Ms Slade also made another important point - students should always try to ensure they have the facilities to repay the debt when the bill comes in as if only the basic minimum payments are made, interest can quickly mount up.

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