International Students: Getting A Uk Credit Card

International students in the UK may struggle to find a credit card company that is willing to give them a credit card. This is because international students are seen as a poor long-term investment and a high risk since they will likely return to their home country. However, some banks in the UK have cards specifically designed for students, such as HSBC, and some students choose to apply for a credit card from their home country before travelling. It is important to do research and read the terms and conditions of any application carefully, as well as to be aware of interest rates and any fees and charges.

International students can get a debit card

A debit card is a good option for international students as it allows them to do things that require a credit card, such as buying airline tickets, theatre tickets, rental cars, mobile phones, and making online purchases. It is also helpful if you don't already have a major credit card.

To open a bank account in the UK, you will need a passport or national identity card (if you are from an EU country), an unconditional acceptance letter from your university, and evidence of your current address in the UK. A basic bank account is the type most commonly set up by international students, but these often don't provide bank cards. Therefore, it is recommended to see if your bank has a student account or another type of account that will allow you these conveniences.

Some banks, such as HSBC, offer international student bank accounts that can be managed with an app, on a computer, by phone, or in a branch. These accounts come with a contactless Visa debit card (limits may apply).

Credit cards are available to international students

However, there are a few options for international students seeking a credit card in the UK:

• Obtain a supplementary card from an international bank: You can get a supplementary card under your parents from international banks like American Express, MasterCard, or a bank back home. This option may be more accessible if you have a credit history with these institutions.
• Apply for a credit card designed for international students: Some banks in the UK offer credit cards specifically for international students. These cards often have perks such as building your credit history, travel rewards, and cashback. However, they may have strict limits to prevent overspending.
• Apply for a credit card with a bank where you have an existing account: If you already have a registered bank account in the UK, you can increase your chances of obtaining a credit card by applying with the same bank. They may be more likely to approve your application since they have access to your banking history.
• Use a credit card from your home country: If you already have a Visa or MasterCard credit card from your home country, you can use it in most shops and restaurants in the UK. However, check with the credit card company to see if there are any extra fees or charges for using your card abroad.

It is important to note that credit cards can be expensive if you cannot pay the balance within the grace period. Interest fees will apply, and failing to make timely repayments can negatively impact your credit rating. Therefore, it is crucial to carefully consider your ability to make repayments before applying for a credit card.

Research credit card options and their terms and conditions

As an international student in the UK, you can get a credit card, but it can be challenging. Some UK banks are reluctant to issue credit cards to international students because they typically don't have an established credit history.

If you're an international student looking to get a credit card in the UK, you should research your options and carefully read the terms and conditions of any application. Here are some key things to keep in mind:

Types of Credit Cards

There are different types of credit cards available to international students in the UK:

• Student credit cards: Some banks offer credit cards specifically for students. These cards usually have strict limits to prevent students from borrowing more than they can afford to repay. However, not all banks offer student credit cards, and you may need to be an existing customer of that bank.
• Credit builder cards: These cards are designed for individuals with no or poor credit history, making them a good option for international students. They typically have more lenient eligibility criteria, but they often come with lower credit limits and higher interest rates.
• International credit cards: Some international banks, such as American Express and MasterCard, offer credit cards that can be used worldwide. However, not all retailers in the UK accept these cards, so it's important to check beforehand.

Terms and Conditions

When researching credit card options, pay close attention to the terms and conditions, including:

• Interest rates: Understand the interest rates charged on outstanding balances. If you're unable to repay the full amount within the grace period, you'll start accruing interest, which can increase your debt quickly.
• Fees and charges: Be aware of any additional fees and charges, such as annual fees, foreign transaction fees, late payment fees, and charges for going over the credit limit. These fees can add up, so it's important to factor them into your decision.
• Eligibility requirements: Check the eligibility criteria, including age, residency status, student status, and income requirements. Some cards may require you to have a bank account with the issuing bank or provide proof of income.
• Rewards and benefits: Consider the rewards and benefits offered by the credit card. Some cards provide perks like travel points, cashback, or special discounts. Weigh these against any fees to determine the overall value of the card.
• Credit limit: Understand the credit limit offered and whether it aligns with your needs and repayment capacity. A higher credit limit can provide more financial flexibility, but it's important to ensure you can manage your spending and repayments effectively.
• Repayment options: Find out about the repayment process, including the minimum monthly payments, due dates, and any penalties for late or missed payments. Ensure you have a plan to make regular repayments to maintain a good credit rating.

Remember, it's crucial to carefully review the terms and conditions of any credit card offer before committing to it. Understanding the fees, interest rates, and repayment requirements will help you make an informed decision and effectively manage your finances while studying in the UK.

Credit cards for international students in the UK require credit history

International students in the UK can get a credit card, but it is not always straightforward. Some banks are reluctant to issue credit cards to international students as they are unlikely to have an established credit history in the UK.

Credit history is a record of an individual's responsible borrowing and repayment of loans. It is used by lenders to assess whether an applicant is likely to make regular repayments. Without a credit history, it may be challenging to borrow money or obtain credit.

International students can increase their chances of obtaining a credit card by researching the prerequisites and benefits of cards offered by different banks. Some banks have cards specifically designed for university students, which may have a strict limit to prevent overspending. It is also worth considering obtaining a supplementary card under a parent from an international bank.

Additionally, international students can start building their credit history in the UK by opening a local bank account. Many banks offer special accounts for international students, which can be a good starting point for managing finances and building credit. Getting on the electoral roll is another way to boost credit scores, as it helps confirm identity and gives creditors confidence.

Debit cards are a good alternative to credit cards

International students are allowed to open a bank account in the UK, and some universities require their students to have a UK bank account. Basic bank accounts are the most common type of account set up by international students, and these often do not provide bank cards. However, many banks now typically provide a bank card when you open an account. These bank cards, or debit cards, are affiliated with a credit network, like Visa or Mastercard, so they can be used to withdraw money from a cash point and can also be used like a credit card to make purchases online or in stores.

Another advantage of debit cards is that, unlike credit cards, there is no risk of falling behind on repayments and accruing interest charges. With a debit card, the money is instantly taken from your account, so if you do not have enough funds, the card will be rejected. This means there is no risk of debt spiralling out of control, which can happen with credit cards if you are unable to make the necessary repayments.

Furthermore, while credit cards can be a good way to build a credit rating, which is necessary if you plan to settle in the UK after studying, they often require some sort of credit history to obtain in the first place. Debit cards, on the other hand, are usually provided by banks when you open an account, with no credit history required.

Finally, while credit card purchases offer more protection than debit cards in the UK thanks to Section 75 of the Consumer Credit Act, this only applies to purchases between £100 and £30,000. Thus, for most everyday purchases, a debit card offers sufficient protection.

Frequently asked questions