The average APR (annual percentage rate) on a student credit card is around 18%.
Students could be paying up to 5 per cent more than the typical credit card rate if they take out cards marketed specifically at students according to research from moneyfacts.co.uk the money search engine.
It shows the average APR on a student credit card is around 18 to 20 per cent compared to an industry wide average of around 15 per cent.
Chiltern’s Nathan Gladwell says “If students need cash in an emergency most overdrafts are interest free so asking your bank for an extension is a far better option than a credit card.”
“A credit card might seem like a good short term idea but if you’re only repaying the minimum amount each month it will take years to repay”
The credit limits on offer with these cards are low, ranging from £250 to £500 but with little or part-time student income even a few hundred pounds may be difficult to repay.
Credit cards are a good way to shop online or for an emergency purchase, but students should always think about how they are going to pay the bill.
Small debts can easily mount up and with high APRs these cards could end up landing students in long term debt.
If you have credit card debts that are spiralling out of control visit our web site chiltern.uk.com – we’ve been helping people with their debt problems for more than 10 years. Alternatively call us FREE on 0800 043 2332 now for a confidential chat.
