Your years at university will be an education in more than just your chosen degree subject: learning how to navigate finances will be one of the important parts of these three (or four) exciting years. That’s if you haven’t blown your entire student loan on fancy dress and beer during Fresher’s Week!
We reckon you’re more than capable to eke out your money over the year. You’re not going to need to rely on a credit card and it isn’t a great idea anyway. Using it to pay your share of your house’s utilities bill should be avoided and, if you are using Glide and being sensible with your budget, using a credit card should be totally unnecessary.
Credit cards can be useful but only when carefully managed and for the purpose of building a good credit history and insuring the purchases you make on it. Search the internet with Glide’s fast broadband for students and you will find lots of offers on ‘bargain’ credit cards.
Many of these will have an initial 0% interest deal to attract new customers and these offers are useful for spending a small amount, paying it off early and making you look attractive to future lenders in the years to come. Just watch out for the interest rate after the 0% ‘deal’ ends and make sure you have cleared the balance.
So, why are credit cards such bad news for students?
Existing debt
The debt most students will be left with after taking out a student loan will be enough to start your working life with. It’s low interest and the payments are automatically taken out of your wages as you earn. Adding unsecured credit card loans to existing debt is something to be avoided since this debt must also be serviced and repayments made regularly. Failing to do so could lead to legal action.
You don’t earn enough yet
The vast majority of students will only work on a seasonal or part time basis and you simply won’t earn enough to pay the monthly payments as well as share bills with roommates. Save getting a credit card until you land your first full time job. One day you’re going to have regular serious money in your bank (that’s why you’re working so hard on your degree right?!) and paying off a credit card won’t be an issue.
Temptation
Now how likely are you to be able to walk away from something you REALLY want when the credit card in your pocket could buy it for you? I’m not sure many of us are that strong … especially when it’s a pair of limited edition Converse! Ok, so maybe the occasional concert ticket won’t hurt but what about the next gig your mates are going to? Or the dress that would be perfect for a Saturday night in town? If you and temptation do battle frequently then think carefully about applying for plastic.
You’re not learning to budget
A graduating university student should have more than their degree to show for their three years. Independence, responsibility and a high tolerance for tequila shots are personality traits that you should have been developing too.
Learning how to be financial savvy is vital and when it comes to credit cards that means using them for emergencies, credit building and insurance of an important purchase .
Rent, paying for utilities in your student house, food and fun should be budgeted for every month. It’s not easy when you’re a student to do this, we know that, that’s why Glide can to help; share your utility bills with roommates and it will help you budget. A single amount, direct debited every month can pay for utility bills, broadband, a phone line and TV licensing.
If you pay your bills individually it’s likely that the cost of utilities such as gas and electricity will change throughout the year making planning your monthly spend difficult. It also very likely that someone in your student house will ‘forget’ to make a payment and if it’s you with the credit card then it’s likely to be you paying their share of the water bill and the interest while they faff about giving you the money back. This is a situation that no student should have to be placed in!
For more information about how you can pay your utilities bill every month and enjoy great student broadband connection, then contact the Glide team today.