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Students have always been perceived as a group that struggles to make ends meet, paying fees, rent and food without having regular incomes. It’s no surprise therefore that some students look far and wide to access more money.
More people than ever now possess a credit card, and although it does provide a way of getting money, the dangers of them are often not highlighted sufficiently. Educating credit card holders, encouraging them to use it responsibly and pointing out the best ways to save money, and get the best deals are crucial to ensure that debt remains manageable.
Research carried out APACS (the UK payment association) shows that student are potentially being more responsible and careful with their credit cards - with 59% of students between 16 and 24 claiming the always repay the full balance on their credit card. This compares to the national average of 55%.
One of the most costly aspects of a credit card is unquestionably the APR - the interest paid on outstanding balances. By paying the balance in full every month student credit card holders are ensuring that they do not bear the full brunt of this. More details on specific providers can be found on student credit cards comparison page.
Research carried out by E4S on students and credit cards confirms this figure, but also suggests that students may not be using and getting the best deals on the market. With 50% of credit card holders surveyed claiming that they had no interest free promotional periods on their card (either interest free balance transfers or interest free purchase periods), it suggests that people have scope for finding better products which potentially could save them more money.
When it comes to not regularly using your credit card for things like withdrawing money and making purchases, students seem to be faring quite well. Just under 41% claim to use their card only in emergencies, or never - whilst only 13% use their card daily. It has to be recognised that students use credit cards in very different ways however, with some using it for everyday purchases, and others not using it all.
The research carried out by E4S involved 195 users, 97% of whom are students, answering questions on whether they paid off their credit card balance every month, what attracted them to the credit card in the first place, and a variety of questions on usage and their credit card applications.
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