The HSBC Student Credit Card is one of the best overall due to its low APR, no annual fee, and wide availability. It’s ideal for students who already have or plan to open an HSBC student bank account. The card is designed to be a safe entry into credit, with a modest limit and low running costs if used responsibly.
Compare Student Credit Cards
Student credit cards are designed to help young adults build credit, manage small expenses, and learn financial responsibility while studying. They typically offer low credit limits, no annual fees, and a higher chance of approval for those with little or no credit history. Some even offer small rewards or cashback, but the main value is helping students establish good financial habits early.
| Student Credit Card | Representative APR | Annual Fee | Credit Limit | Key Features | Perks |
|---|---|---|---|---|---|
| HSBC Student Credit Card | 18.9% | £0 | Up to £500 | Low APR, great for HSBC student account holders | Companion voucher (high spend) |
| NatWest Student Credit Card | 18.9% | £0 | Up to £500 | Simple, no-frills card for NatWest account users | 2-4-1 voucher (more flexible) |
| TSB Student Credit Card | 19.9% | £0 | Up to £500 | Works with TSB student accounts, easy to manage | |
| AIB (GB) Student Credit Card | 13.9% | £0 | £250–£600 | One of the lowest APRs for students |
Pros of students getting a credit card
- Helps build a credit history early
- Teaches responsible spending and repayment habits
- Useful for emergency purchases or unexpected costs
- Can improve future credit eligibility for loans or rentals
- Often no annual fees and lower spending limits for control
Cons of students getting a credit card
- Risk of falling into debt if misused
- High interest if balance isn’t paid in full
- May damage credit score with late or missed payments
- Can lead to overspending due to easy access to credit
- Limited rewards or benefits compared to other card types
Is Getting a Student Credit Card a Good Idea?
Getting a student credit card can be a helpful financial step—but it comes with real risks. For many, it offers a first opportunity to build a credit history, manage small purchases, and gain independence. However, new research suggests students are increasingly struggling to manage this responsibility.
According to Compare the Market, nearly half of university students (48%) say they’ve been unable to repay their credit card balance within three months. The main reasons include the rising cost of living (33%), increased university fees (31%), and the need to prioritise essentials like rent and energy bills (23%). This means many students are using credit to cover unavoidable expenses—not just extras.
Despite these concerns, credit card uptake remains high. An estimated 86% of students either have or plan to get their first credit card for university. Confidence is strong too, with 72% of students believing they’ll be accepted for future credit cards. Yet, nearly one in four (23%) are unaware that missed payments and high balances can harm their credit score.
Students commonly use their cards for essential but high-cost items, such as extra rent (£96/month), clothing and shopping (£81), and furnishings (£71). While this shows the cards are being used for genuine needs, it also highlights how quickly balances can build up.
The decision to get a student credit card should not be taken lightly. Used responsibly—by paying off the full balance each month and staying within the credit limit—a student card can help young adults build a solid financial foundation. Encouragingly, 82% of students compare providers online before choosing, and 47% seek advice from family, which shows a proactive approach to choosing the right product.
Still, for many students living on tight budgets, even small amounts of revolving debt can snowball into long-term financial strain. Student cards offer simplicity and safety in structure, but they require strict self-discipline.
In short, getting a student credit card is a good idea only if the borrower fully understands the terms, plans to repay in full each month, and uses the card as a financial tool—not a way to fund an unsustainable lifestyle.
What is the best credit card for foreign students?
Most student credit cards in the UK require applicants to have a UK bank account, but foreign students who have opened a local student account may qualify. In that case, the AIB (GB) Student Credit Card is a good option because of its low 13.9% APR and smaller starting limit, making it easier for international students to manage. Alternatively, foreign students may be better suited to prepaid travel cards or credit-builder cards like the Aqua Classic once they establish residency and income.
