Student Bank Account or Credit Card?

14

I will be attending University from September and will be commuting everyday and might not work in 1st year therefore I was contemplating a banking account, which I could use incase I am in an urgent situation where I need to borrow money.

I am deciding between getting a credit card, which would be interest free on all transaction and purchases for the first 21 months (Barclays) or a student account (Santander), which lets you use an interest-free arranged overdraft.

Which would you suggest is better for a student and do you have experience with either?

Reply 1

Surnia

20

If you 'borrow' money you have to pay it back. How, as a student, do you think you're eligible for a credit card requiring monthly payments, and with interest if you don't pay off the full amount each month?

Reply 2

bxa_842

OP

14

Original post

by Surnia

If you 'borrow' money you have to pay it back. How, as a student, do you think you're eligible for a credit card requiring monthly payments, and with interest if you don't pay off the full amount each month?

I’m aware I will have to pay it back. I currently have a job and for credit cards you can see if they would accept you online, which mine was. I stated that the credit card would be interest free for 21 months hence why I was asking which would be a better option.

Reply 3

Surnia

20

Original post

by bxa_842

I’m aware I will have to pay it back. I currently have a job and for credit cards you can see if they would accept you online, which mine was. I stated that the credit card would be interest free for 21 months hence why I was asking which would be a better option.

But if acceptance is on the basis of having a job and a regular income, what if you weren't working (as you stated in your first post)?

Reply 4

normaw

Volunteer Section Leader, Clearing and Applications Advisor

20

Original post

by bxa_842

I will be attending University from September and will be commuting everyday and might not work in 1st year therefore I was contemplating a banking account, which I could use incase I am in an urgent situation where I need to borrow money.

I am deciding between getting a credit card, which would be interest free on all transaction and purchases for the first 21 months (Barclays) or a student account (Santander), which lets you use an interest-free arranged overdraft.

Which would you suggest is better for a student and do you have experience with either?

A student bank account with the overdraft facility is a better option. Depending on the bank, once you graduate you will usually have 2-3 years to pay the overdraft back.

(edited 1 year ago)

Reply 5

martin7

20

Original post

by bxa_842

I will be attending University from September and will be commuting everyday and might not work in 1st year therefore I was contemplating a banking account, which I could use incase I am in an urgent situation where I need to borrow money.
I am deciding between getting a credit card, which would be interest free on all transaction and purchases for the first 21 months (Barclays) or a student account (Santander), which lets you use an interest-free arranged overdraft.
Which would you suggest is better for a student and do you have experience with either?

The eligibility criteria for the Barclaycard include (1) you must be over 21; and (2) you must have an income of over £20,000 a year. Do you meet those criteria?

Reply 6

bxa_842

OP

14

Original post

by martin7

The eligibility criteria for the Barclaycard include (1) you must be over 21; and (2) you must have an income of over £20,000 a year. Do you meet those criteria?