Fees, new textbooks and school supplies - it all adds up. If you’re a student you’ll know how stressful the start of a new semester can be, especially if you’re short on money. If you’re looking for a convenient way to cover all your back to school expenses, a student credit card might be what you need.

What is a student credit card?

A student credit card is a credit product designed specifically for full-time tertiary or TAFE students. To be eligible you’ll generally need to be:

• Over 18
• Working or have some form of regular income
• Enrolled at an accredited institution

What are the advantages of having a student credit card?

• You can buy what you need when you need it.
• You can get into the habit of making regular repayments.
• You’ll learn about managing your money.
• You can establish your credit rating. This will make it easier for you to get a loan in the future.

Formulating a clear plan of how you’ll manage your student credit card is a good idea. At the very least ask yourself the following questions.

What will I use it for?

Credit cards are really handy for making large purchases when you need to. Make a list of all the purchases you plan to make on the card. Set these things in stone now, and you’ll be less tempted to make frivolous purchases in the future.

How will I use it?

Is your student credit card just for emergencies or will you use it frequently and pay the balance off each month?

Can I make the repayments?

Being honest about your financial situation will save you a lot of headaches and stress in the future. If you’re not earning much money, and if you have a lot of expenses, you need to weigh up if you can afford a credit card. Remember - a student credit card isn’t free money. You need to pay it back, with interest, so make sure you have the means and commitment to do so.

What will my credit limit be?

You can get student credit cards with a lower credit limit than a standard card. Carrying less debt means you won’t get into as much trouble if you’re having issues with repayments.

Before you apply - what you’ll need

To apply for a student credit card you’ll need to provide the lender with some evidence of your situation. While each application process is different, you’ll generally need to provide:

• Proof that you’re enrolled in full-time study at an accredited University of TAFE.
• Evidence of income - whether it be from a casual job, part time job or even Austudy payments.
• Proof that you’re an Australian citizen, permanent resident or you have a current Australian visitor’s visa.

Some student credit cards require that you have an established bank account with the lender - just make sure you check this out before applying.

What to look for in a student credit card

• A low credit limit (the lower the limit, the less you’ll have to pay back!)
• A competitive interest rate on purchases
• A standard interest free period
• Low or no annual fees - some cards waive the annual fee for the first year or even for the entire duration of your studies.

Before you sign up - shop around

The key to getting the best deal on any type of credit card is to shop around. Find out as much information before you apply and make sure you understand or are aware of any special terms and conditions.

Are you interested in applying for a student credit card but you’re not sure which one is right for you? Check out our online comparison of all the cards currently on offer in Australia.