5 Benefits of Having a Credit Card as an International Student in the UK
As an international student in the UK, managing finances can be a daunting task. The expenses can add up quickly and leave you struggling to make ends meet. One way to ease the financial burden is to have a credit card.
However, not all credit cards are suitable for students, especially those who are not residents of the UK. In 2023, there are several credit cards designed specifically for students, and they offer a range of benefits that can make a significant difference in your life.
In this post, we will explore five benefits of having a credit card as an international student in the UK.
1-Establishing credit history in the UK
As an international student in the UK, having a credit card can help you establish a credit history. A credit history is a record of your financial behavior, including your credit card and loan repayment history, and it’s essential to have if you plan on renting an apartment, applying for a loan or a mortgage in the future.
By using a credit card for students in the UK, you can start building your credit history by making timely payments and managing your spending. This will make you a more attractive borrower to lenders in the future.
It’s important to note that if you don’t use a credit card responsibly, it can negatively impact your credit score. Be sure to pay your balance in full and on time each month and keep your credit utilization low to maintain a healthy credit score.
In summary, having a credit card for international students in the UK can help you establish a credit history, which is essential for future financial endeavors. But be sure to use it responsibly to avoid damaging your credit score.
2- Convenience of cashless transactions
As an international student in the UK in 2023, you will need to make numerous purchases throughout your stay. From paying for groceries and rent to buying books and clothes, having a credit card for student can make your life easier by allowing you to make cashless transactions.
With a credit card, you can simply swipe or tap your card and be on your way, without the hassle of carrying cash or worrying about making exact change. This is especially beneficial when making online purchases, where having a credit card is often necessary.
Plus, most credit cards offer fraud protection, which gives you added security when making purchases. Overall, having a credit card for student makes it more convenient for you to make purchases, especially when you’re on the go and need to make quick transactions.
3-Opportunity to earn rewards and cashback
One of the perks of having a credit card as an international student in the UK is the opportunity to earn rewards and cashback. With a credit card for student in UK 2023, you can earn rewards points for every purchase you make.
These points can then be redeemed for discounts, cashback, or other rewards such as gift cards, travel rewards, and more.
Many credit cards also offer cashback incentives for certain categories of purchases such as dining, grocery shopping, and transportation.
By using your credit card for these purchases, you can earn cashback rewards that can help offset the cost of your daily expenses.
It’s important to note that not all credit cards offer rewards and cashback programs, so it’s important to do your research before applying for a credit card. Look for credit cards with rewards programs that align with your spending habits and offer the best value for your needs.
In addition to earning rewards and cashback, using a credit card for your purchases can also help you keep track of your spending. Most credit cards provide detailed statements that list all your transactions, making it easier to track your expenses and manage your budget.
Overall, having a credit card as an international student in the UK can offer a variety of benefits beyond just convenience. Take advantage of rewards and cashback programs to earn discounts and cashback on your purchases while also building your credit history and improving your financial management skills.
4- Emergency backup funding
As an international student in the UK, unexpected expenses can arise at any moment. Whether it’s a medical emergency or an unforeseen travel expense, having an emergency backup fund is crucial. However, building up such a fund may not always be possible, especially if you are living on a tight budget. In such situations, having a credit card can be a lifesaver.
A credit card can provide you with instant access to funds that you may not have otherwise. In times of emergency, it can help you pay for the expenses you need without having to rely on your limited savings. Plus, you can repay the amount in small installments over a period of time, instead of having to pay everything off at once.
However, it is important to remember that credit cards are not a free source of money. Interest rates on credit cards can be high, and if you are unable to make timely payments, the interest charges can quickly pile up. As an international student in the UK 2023, it is crucial to use your credit card responsibly and only use it as a backup option.
Having a credit card as an emergency backup fund can give you peace of mind knowing that you have a safety net to fall back on in times of need. Just remember to use it responsibly and only when necessary.
5-Increased purchasing power for essential expenses
As an international student in the UK 2023, it’s important to be mindful of your expenses. You’ll need to cover tuition fees, accommodation, and living costs while studying abroad. Having a credit card can help increase your purchasing power and provide you with financial security.
Essential expenses, such as textbooks, course materials, and transportation, can add up quickly. With a credit card, you’ll be able to cover these expenses without having to worry about running out of cash. You’ll also have the flexibility to make purchases online, which can be especially helpful if you’re unable to leave your accommodation due to illness or bad weather.
In addition, some credit cards offer special promotions and discounts on certain purchases. For example, you may be able to save money on travel expenses or get cashback on your grocery purchases. These rewards can add up over time and help you save money on essential expenses.
Overall, having a credit card as an international student in the UK can be a valuable financial tool. It can provide you with increased purchasing power for essential expenses, as well as emergency backup funding, cashback rewards, and the convenience of cashless transactions.
Just remember to use your credit card responsibly and pay off your balance in full each month to avoid accruing interest and fees.
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