Students urged to check credit cards

Students have been urged to check that they are getting a good deal on their credit cards by the Irish Financial Services Regulatory Authority, which yesterday published a new survey of student credit cards on its website, www.itsyourmoney.ie. Laura Slatteryreports.

The survey shows that National Irish Bank (NIB), despite not having a specific credit card or current account aimed at students, offers them the lowest interest rate, through its standard credit card.

Interest on the NIB card is 10.2 per cent APR, compared to rates of up to 17.9 per cent APR on credit card purchases at AIB.

The financial regulator's head of consumer information, Sharon Donnery, said the credit card offered to students by the bank with which they hold their current account may not be the best one for them.

"You can make significant savings by switching your card to get a lower rate. This is especially important for students who are living on a tight budget and may rely on their credit card from time to time," Ms Donnery said.

The survey shows that late payment fees on the credit cards range from €3.81 to €8.50. Ms Donnery advised students to set up direct debits to make sure their bills were paid on time and ensure they had enough cash in their current accounts to make the payments.

Banks that offer student credit cards say that students are more likely than the population as a whole to repay their outstanding debt within the interest-free period.

Credit limits for students tend to be much lower than they are for other customers, ranging from €400 to €850. A poll on the financial regulator's website suggests that 52 per cent of cardholders have credit limits of more than €5,000 on their cards.