Savings and credit cards
A realistic Guide to life at UCLan - written by students!
Comments from students...
Some students share their experiences of saving money and credit cards!
“Another good tip for managing your money is trying to take advantage of the interest rate. When I’ve had an overdraft, I’ve cleared it all out and put it into a savings account. Depending on how much your overdraft is – ok, it only generates pounds – but it’s still better sitting in a savings account, compared to sitting in the actual overdraft account. That’s always a good tip.”
This idea’s only for those with a strong will and an ability to resist temptation:
“If you can trust yourself with a credit card, I’d get one. I’ve got a credit card because I’m thinking ahead. When I leave uni I want to buy a house and get a mortgage. You can’t get a mortgage unless you get a credit rating. So, I’ve got a credit card, and spend about £10 a month on it (which I pay off straight away). I’ve had it for about three years, so my credit rating is absolutely brilliant. So, if you can trust yourself, I’d get one. Then you can at least start to build up a credit rating. But if you can’t trust yourself, don’t even think about it.”
A credit card can be handy for larger purchases too, because you get a certain amount of consumer protection on your purchases. Have a look at www.moneysavingexpert.com for more details - and pay the bill off before you get charged interest.
“Well, I had to take out a graduate loan when I’d finished uni because: (1) I didn’t have any money and (2) I had to pay off my credit cards. I took out £3000 and over half of that went towards paying off my credit cards. So I don’t recommend it if you don’t have the will-power.”
“All the way through uni, there were a couple of times when I got stranded and I’d ring my dad, not knowing what to do. He said that I needed a credit card for emergencies like this. But I knew I’d never be able to trust myself with it. I’d be in Primark!”
Note from the TAG Team: A credit card might be useful in emergencies or if you can trust yourself with one, but remember its easy to get carried away with plans to "pay it off next month". If your friends are a bit more flush that you it can be tempting to spend on a credit card so you don't feel left out. Keep in mind that the debt won't just disappear and it is likely to be a lot harder to pay it off when you graduate and your outgoings increase! If you do find yourself in debt or are struggling to manage your money visit the SU advisors.