Your Guide To The Best Credit Cards For Students
If you’re thinking of getting a credit card, here’s what you need to know.
Student credit cards can be quite scary and if you don’t understand how they work or use them irresponsibly you can end up in a lot of debt. However, credit cards also have lots of advantages and benefits when used properly.
For students, a credit card can help your money to go further, improve your credit score and give you some cool perks too. Here’s everything you need to know about credit cards and how to responsibly use them. But y’know, we’re not financial advisors, so make sure you speak to one to make good choices about your money.
How do credit cards work?
Credit cards are basically a way to pay for things, without actually paying for them straight away. When you get a credit card it will have a pre-approved limit and the money on the card is yours to spend, but it’s a loan from your credit card company so you’ll have to pay it all back eventually. Everything you spend on your credit card you need to pay back, normally with interest added and at an agreed date.
Each month you’ll have to pay off some of your credit card balance, you can choose to clear the balance in full or pay back the minimum amount required. However, if you only pay back the minimum required each month it will take a lot longer to pay off and you’ll start piling up the debt. Also, while your credit card will have a pre-approved limit, it doesn’t mean you can spend it all in one go. Hitting or going close to your limit can be seen as irresponsible spending and in turn, it can really affect your credit score, but if you stay below your limit and pay back regular instalments each month it can increase your credit score. Confusing, we know, so getting the balance right is key.
Do you need a credit card?
Getting a credit card is a big decision and one that could have negative consequences if not used responsibly. So if you’re considering getting one as a student it’s best to fully weigh up your options. If you have a part-time job and you’re regularly getting paid, a credit card could be a good idea to help your money go further. As you already have an income, you know you’ll be able to pay off some of your balance each month.
If you don’t have a part-time job or dip into your overdraft, getting a credit card might not be the best idea. This could promote bad spending habits and you might not be able to pay off your balance. However, a credit card is also a great way to improve your spending habits and your credit score if you use it correctly.
There are other ways to supplement your student loan and support the cost of living while in uni. Overdrafts, part-time jobs and side-hustles that won’t leave you in debt could be a better option.
What are the benefits?
It can improve your credit score: one of the main reasons people get credit cards is to improve their credit score. Having a low credit score can make it hard to be approved for loans such as getting a phone or car on finance, renting a flat or applying for a mortgage later in life. So a lot of people like to get ahead of the game. You can build your credit score by getting a credit card and using it responsibly, such as:
- spending small amounts on your credit card
- not going over or near the credit limit
- paying back a decent chunk each month, by the set repayment date
Money management skills: getting a credit card can actually help to teach you some money management. When you get a credit card you might think you’re being given the opportunity to spend it all in one go. But as this could negatively impact your credit score and land you in debt, it can be a lesson. Showing that you use it sensibly and pay off part of your balance each month can teach you key financial responsibility skills. These are important for the rest of your life.
Rewards: some credit cards come with rewards schemes like cashback or perks for being a member. Plus many come with an interest-free period when you first sign up.
Emergencies: credit cards are handy to have in case of a serious emergency or if you’re completely out of cash. Especially if you’re waiting for your next student loan payment. You never know when you might need to fix a broken laptop, or pay for a taxi to get home from a night out.
Things to consider when applying for a student credit card
Credit score: while student credit cards can improve your credit score they can also make it worse. If you miss repayments or if you max out your card or go too close to the limit. Applying for too many credit cards in a short amount of time can also negatively impact your score. So if you’re applying for one make sure it’s one you have a good chance of being accepted for.
Repayments: everything you spend, you need to pay back, normally with interest. It’s easy to get carried away and spend more than you can afford to pay back.
Penalties: you normally can’t withdraw money from an ATM or spend money abroad without being slapped with a significant fee. Also going over your limit can also come with a lot of interest. The APR (interest rate) can also be really high on student credit cards. So if you’re not paying off your full balance each month you can expect some pretty high interest added on.
Best credit cards for students 2025
When looking for a student credit card, it’s best to look at comparison sites such as Money Supermarket or Compare The Market to see what’s out there and what you’re likely to be accepted for.
This saves you from making too many applications and being rejected, which will negatively impact your credit score and put companies off from wanting to accept you for a credit card. Here are some of the best credit cards for students in 2025:
| Bank | APR | Limit | Positives | Negatives |
|---|---|---|---|---|
| HSBC | 18.9% | £500 | – Can be used abroad – Interest-free periods when signing up – Online banking | – You have to be an existing HSBC customer with a student account |
| TSB | 21.9% | £1,000 | – Online banking – Interest-free periods when signing up | – You have to be an existing TSB customer with a student account – Very high APR |
When applying for a student credit card your personal circumstances could impact how much your limit is, so this may be different for everyone.
Should you get a student-specific credit card or not?
If you are considering getting a credit card, it’s up to you whether or not you go for a student-specific credit card or not. As a student, you will have a higher chance of getting approved for a student credit card over a regular one. Plus the restrictions in limits may be more useful to you as it will be less tempting to spend.
Student credit cards can be a good introduction to credit cards. But if you are considering getting a credit card for university, regular credit cards often work in the same way. It’s best to research different student credit cards and regular credit cards to see which one has the best benefits and lowest interest rates. This way you can work out which will be best for you.
Managing credit card spending and repayments
So, how do you use a credit card responsibly?
- Only buy what you can afford. Just because your limit is £1000, it doesn’t mean you have £1000 to spend. Only use your credit card for small purchases to get you by until your next student loan instalment or payday.
- Pay your balance in full. Try and pay off your balance in full or as close to full each month, so that your debt doesn’t build up. The more you pay off, the less interest you’ll build up so try not to be tempted by just paying the minimum each month.
- Don’t forget your payment date. Missing a payment date can have serious consequences and stays on record. So set up a direct debit to pay your balance each month but make sure you’ve got enough in your standard bank account to cover it.
- Don’t go near the limit. As a rule, try to never go over 30% of your limit as this can impact your credit score.
What happens to a student credit card after you graduate?
You’ll still be able to use your student credit card when you’re no longer a student, but you might also be eligible for a regular credit card instead. Regular credit cards tend to have lower APR, higher limits and better benefits and perks. So once you’ve graduated you will probably want to take out a new credit card. But first, you’ll need to have completely paid off all your outstanding balances on your previous card before you close your account and open a new one.
Credit card jargon
Credit cards can be confusing if you’ve never had one before. Here’s some of the jargon you’re probably going to come across if you’re applying for one:
APR: Annual percentage rate is the rate you’ll be charged on your credit card balance over a year. This takes into account interest, fees and how often you make repayments.
Balance transfer: this is transferring the balance from one credit card onto another one. This can be helpful for people who have credit card debt as when transferring to a new credit card you may get an introductory 0% interest offer. So this means you won’t accumulate any more interest on your balance.
Cashback: a benefit offered by many credit card companies that will allow you to earn back money every time you use your credit card in certain shops.
Credit limit: this is the maximum amount of money you’re allowed to borrow.
Minimum payment: this is the minimum amount you’ll need to pay back each month, which is normally a percentage of your balance. If you only pay off the minimum each month, your debt will add up. So it’s important to try and pay off as much as you can monthly.
How to improve credit score
One of the best ways to improve your credit history is to get a credit card! Many students will often have a low credit score because they’ve never had any experience with credit before. So having a credit card is a good way to change this. If you use a credit card responsibly, it shows lenders that you’re responsible with your money. This can help boost your score. We’ve got a whole guide on how to improve your credit score if it’s important to you.
Other ways to improve your credit history include:
- making sure that you’re on the electoral roll
- having bank accounts that have been opened for a while (so, not changing your bank account regularly)
- not applying for credit too often. Every time you do apply for a credit card or loan it will show up on your credit file.
Too many applications can be a red flag to lenders, so make sure that if you do apply for a credit card, you just apply for the one rather than applying for multiple and seeing if you’ll be accepted.
For more money advice check out the average student budget per month and how to manage your money and make it go further.
Unlock even more with Student Beans
All your favourite brands at your fingertips, from fashion and beauty to food and drink, available to college and uni students aged 16 and over. Dive into our blog to find tips and advice to help you navigate student life, from applying to uni to life after graduation.
- Sign up to a Student Beans account now or login to start saving on the biggest and best brands.
- Download the Student Beans app to unlock exclusive app-only discounts to make student life a little bit more affordable.
