Students seem sensible with credit cards
A new peice of research from Halifax found that only 37 per cent of students have a credit card and the average credit card balance amongst students is only £220.
I was very surprised to hear this but it seems as though students are amongst the most savvy of us all when it comes to getting the best out of your personal finances. I say this because students are using their heads by getting student loans and making use of their overdrafts rather than using a credit card to fund themselves whilst at university.
If you think about it this makes complete sense! The average interest rate on a credit card is around 16 per cent while overdrafts and loans are much lower; I’d say these average out at around 6 - 8 per cent depending on the type of current account you have and your credit rating when it comes to getting a loan.
Boys seem to spend less on their credit cards than the girls; the average student credit card balances amount to £173 for the boys compare to £255 for the girls…
Halifax say that students really on seem to use credit cards if they need to, for example making online purchases is best with a credit card, so this could explain the minimal balances seen amongst students today. A spokesman for the National Union of Students said that students should beware when it comes to credit cards - “Credit cards fall into the amber category. They can be used for buying things online, but when credit cards are used to basic living expenses, people should seek help.”