What Is a Credit Card?
Payment card terms are sometimes used inconsistently. The market has many kinds of cards that you can use in stores and online, but their core principles differ. That’s why it’s good to review the card types.
A credit card is a payment card with credit. When you pay, money doesn’t leave your account immediately; purchases are billed later. Because the card offers a credit facility, you can often pay the bill in instalments, but this incurs an extra charge. Due to the credit, issuing a credit card requires a careful assessment of the applicant’s ability to pay.
A charge card works like a credit card. Purchases are billed later, and you have time to pay until the due date. However, there’s no revolving credit, so the bill must be paid in full by the due date.
A debit card is a traditional bank card; the purchase amount leaves the account after a short delay, but a hold is usually placed immediately. So it isn’t easy to live beyond your means with a debit card.
Do Students Need a Credit Card?
A credit card is rarely essential for a student. With just a debit card, you can pay in stores and online. A debit card is also sufficient for travel, and many debit cards now include travel-related perks. Before deciding to get a credit card, consider whether a debit card would be enough.
There are situations where a credit card is the best solution. For example, when renting a car abroad, you must place a sizable security deposit, which is easiest to put on credit. That way, the amount doesn’t tie up your own account. The deposit is returned if the car is in good condition upon return. Interest usually doesn’t accrue. So you never actually pay the deposit with your own money.
Charge and credit cards provide a few weeks of interest-free time, so a card can smooth your cash flow if the due date lands on the same day your monthly income hits your account.
Even if a charge or credit card isn’t necessary, many no-monthly-fee payment cards are in fact credit cards, so getting one can be justified due to the low or non-existent fees. In that case, the best value card happens to include credit. Certain credit cards also come with useful extras, such as airport lounge visits, which can make the card worthwhile. If you get a credit card for reasons other than the credit, it’s important not to use its expensive revolving credit.
The built-in buffer is another reason to consider a credit card. A sufficiently high credit limit protects against unpleasant surprises, such as unexpectedly large medical expenses. However, we recommend building your own financial buffer for unforeseen costs first; the credit card should be the last line of defence.
Can a Student Get a Credit Card?
Yes. Approval criteria are often banks’ trade secrets, but a few basics are easy to list.
Age
The applicant almost always must be over 18. That isn’t always enough, though: some issuers require studies to be sufficiently advanced or even that the applicant be 23. Check the exact terms with the issuer.
Credit History
The applicant must not have payment defaults. It’s unlikely any bank will issue a credit card to someone with payment defaults. So take care of your credit and make thoughtful choices.
Income
To be sure the applicant can pay the bill, the issuer requires income or assets. Students rarely have large incomes, but that doesn’t prevent them from getting a credit card. The credit limit is then set low, which reduces the bank’s risk. Proof of study progress is enough for some banks. For others, simply having a place of study is sufficient.
Additional Card
The easiest way for a student to get a good credit card is to apply for an additional card on a close relative’s account. The primary cardholder is jointly responsible for the bill, so the student’s smaller income isn’t a major risk for the bank. You can apply together with your parents or an employed partner, for example.
Read about safe payment card use
Credit CardOptions for Students
Many credit cards in Finland are also issued to students.
Alisa Bank Visa
Alisa Bank Visa Card is a no-monthly-fee, entry-level credit card. Applying with Alisa Bank’s mobile app is simple, and you get the card almost instantly. Alisa Bank says students can also get the card without special extra requirements. Because the application is quick, it’s worth trying to see if you qualify.
Bank Norwegian Visa
Bank Norwegian issues no-monthly-fee Visa Cards to those over 23. In our experience, approval criteria are fairly strict, but you can try applying if your studies are far enough along. The card’s advantage is a good cashback-style rewards program. According to experiences shared online, students have also received Bank Norwegian Visa cards, but the credit limit was only 1,000 euros.
Saldo Bank Visa
We don’t know whether a student can get a Saldo Bank Visa Card, but the card’s features suggest it’s a basic credit card. The low credit limit and limited features suggest you might qualify for the card even without a permanent job. The application form asks about income and assets, so savings and other assets are likely considered when the decision is made. You receive an approval (or rejection) in 15 minutes.
Nordea Gold Mastercard
Nordea student customers should apply for the Nordea Gold Credit Card. You must be studying at a university of applied sciences or a university. You can apply as soon as you get a study place, and the card offers various benefits. The credit limit starts at 1,500 euros. Students aren’t charged a monthly fee for the card.
OP Visa Cards
An OP credit card is also a good choice for that bank’s customers. A student can apply for an OP Classic Visa or an OP Gold Visa. Likewise, you must be in higher education, and you can apply as soon as you have a study place. The cards have a 2,000-euro credit limit and a monthly fee.
S-Bank
S-Bank’s Visa Card is an excellent choice for students because the card is almost free and S-Bank doesn’t set credit point requirements. You must have a place in higher education. The card’s credit limit will likely be 1,000 euros. Before applying, it’s worth joining your local cooperative store.
Säästöpankki Visa
Customers of the Savings Banks can apply for a Visa credit card from their own Savings Bank as soon as they have a study place. Studies must be in higher education. The credit limit will likely be 2,000 euros. Savings Banks’ Visa cards generally have a monthly fee.
Explore cashback cards
Debit Card Alternatives
For everyday money management, a credit card isn’t necessary. Often, a debit card is cheaper, safer, and easier to get.
Curve Pay
Curve Pay is a traveller’s mobile wallet that isn’t sufficient on its own for payments, but it comes with perks similar to those of premium credit cards. We wrote a review of Curve Pay.
Revolut
Revolut is a mobile bank that provides debit cards. Because Revolut doesn’t offer credit, opening an account is easy. Revolut isn’t a credit card, but Revolut and its cards can still be a solid choice for students.
Revolut offers five subscription tiers, with Revolut Standard being free of monthly charges. The free tier has plenty of features. In addition to a debit card, you get an IBAN and can hold several currencies in Revolut accounts. If you wish, you can order multiple physical or virtual cards for different purposes. Revolut also enables investing. You can also buy airport lounge access and other add-ons through the app. Revolut is a comprehensive package of banking services that suits modern young people.
Read our review of Revolut cards.
Your Bank’s Debit Card
You should definitely get a debit card from your own bank for smooth use of your current account. Often, a debit card can be linked to a bank-issued credit card, which in turn supports getting a credit card from your own bank.
What If I Can’t Pay My Bill?
A credit card comes with risks. If you’ve used the card beyond your means and can’t pay the bill, contact the issuer as soon as possible. You’ll likely find an agreement that satisfies all parties and preserves your credit history.
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