The Disadvantages of Student Credit Cards
5341
Finance > Credit Cards
Mar 1, 2007
Peter J Kenny
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 are listed below:
? People with no, or very little income
? People with negative credit histories
These two groups would have found it next to impossible to get approved for credit cards in the past. 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.
The reasons for this are that the competition in the UK credit card industry has increased dramatically in recent years. As more and more players have entered the market, it is now possible for almost anyone to get a credit card. 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. 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.
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. 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. 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.
There are disadvantages to having a credit card as a student however. The main disadvantage is that it is very easy to get into credit card debt very quickly. 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. 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.
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.
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. 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.
? People with no, or very little income
? People with negative credit histories
These two groups would have found it next to impossible to get approved for credit cards in the past. 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.
The reasons for this are that the competition in the UK credit card industry has increased dramatically in recent years. As more and more players have entered the market, it is now possible for almost anyone to get a credit card. 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. 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.
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. 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. 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.
There are disadvantages to having a credit card as a student however. The main disadvantage is that it is very easy to get into credit card debt very quickly. 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. 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.
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.
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. 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.
Article Source: http://www.articlerich.com
Peter Kenny is a writer for creditcards-gb.co.uk. For additional articles and an extensive resource for everything about credit cards, please visit us at UK Credit Cards and Credit Cards Submitted with Article Distributor.
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
It would have been unthinkable just a decade ago, but now it is commonplace in the UK to hear of zero per t credit cards. Brought about by fierce competition, both from UK and American lenders, and also by historically low interest rates, zero per
Category:
As competition in the UK credit card industry has consistently increased in recent years, credit card providers have been searching for more and more ways to attract customers to their own package of products. Most have gone about this by dropping
Category:
Need to borrow some money then a personal loan maybe for you, most people take a personal loan for home improvements, to purchase a car and holidays. Loans are very simple you borrow a sum of money and pay it back over a period of time say anywhere
Category:
Many people do not realise when their credit card debt is getting on top of them until it is too late. The best thing to do to see how you stand with your credit card and how much you are paying back to them each month, is to calculate your
Category:
Most people don't want to spend a lot of money on having a credit card. They will shop around for the best possible deal they can get on a credit card. They will wish to get as low an interest rate as possible and definitely not pay a monthly or annual
Category:
Many of us feel when we are taking out a loan, that we are not so sure on how they work or how much that you feel that you should apply for, unless you have a specific purchases that the money is going on. Deciding on how much and over
Category:
Traditionally there have been two groups of people who have always found it very difficult to get access to credit cards. These two groups are listed below: ? People with no, or very little income ? People with negative credit
Category:
With more and more people getting redit ards, the hanes of debt are inreasing. If you are in redit ard debt and are afraid your debts will overwhelm you then it is time to hange that. Although it an seem impossible, there are ways out of redit
Category:
Personal loans have exploded in popularity over the last number of years. With UK consumers in more debt now than they ever have been in the past, personal loans are becoming even more popular as more and more people use the to consolidate their
Category:
Interest free and credit card may sound like a couple of words that really do not belong together in the same sentence. And the fact is that just a few short years ago, you would have been absolutely correct. There was a time not too long ago when there
Category:
Many people will have heard about identity theft in the media lately. Identity theft is a growing problem in the UK, having originated in the US. It involves stealing the personal information of an unsuspecting person and using this information to get
Category:
There are as many uses of personal loans as there are people who borrow them and most lenders will be happy to allow you to borrow for whatever purposes you desire. However, there are a couple of general principles that you should apply when deciding
Category:
With all things in life, there will be things that y can pay extra for with credit cards. While most people in most circumstances will be looking for a credit card that gives them the absolute cheapest deals and best rates, there will be some people
Category:
Many people worry that their home will be put at risk if they take out a secured loan over their home. This is because any secured loans that you take out will give the lender a right over your home. This right allows the lender to step in and take
Category:
Other links at Finance > 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 are listed below: ? People with no, or very little income ? People with negative credit
Category:
Interest free and credit card may sound like a couple of words that really do not belong together in the same sentence. And the fact is that just a few short years ago, you would have been absolutely correct. There was a time not too long ago when there
Category:
With all things in life, there will be things that y can pay extra for with credit cards. While most people in most circumstances will be looking for a credit card that gives them the absolute cheapest deals and best rates, there will be some people
Category:
Looking for ways to mend your credit is never child?s play if you have had a terrible era in your period of existence. Nevertheless, it is conceivable to however discover a first-rate credit card that can fill your needs even if you have had bad credit in
Category:
Copyright 2006 Edward Vegliante If you have not yet established a credit record for yourself or you are in the process of rebuilding your credit, getting a credit card can greatly help you. The fact is, credit cards are one of the best ways
Category:
Site Sponsor
Directory Statistics
Articles: 68205
Categories: 501
Yahoo Entertainment
