Student Credit

With students leaving university with more than just a degree, but an average debt of over £12,000, some find they either need to borrow money while at uni to finance the duration of their course, or as soon as they leave to fund repayments until they are earning a salary.

And, what with juggling studies, part-time work, and your finances, it can be difficult to stay in control of everything. So how can students handle credit reliably to ensure a sound financial future?

1. Do not over comit yourself. Financial agreements must be paid on time. If they are not, credit agencies will be informed, and this information will be stored on your credit file for future potential creditors to see (ie anyone you apply for credit from in the future). Furthermore, struggling to make repayments during or after college, is a stressful business, and does not help with studies.
2. Obtain a copy of your credit file to review what information the credit reference agencies hold on you. You may be sharing accomodation while at university and while applying for credit. This can impact you for two reasons. Firstly, you may take on joint credit commitments, such as the digital TV rental. If one of you fails to pay, all of your credit files could be affected, and therefore all of your future applications for credited may also be affected. Furthermore, if any of your housemates get into financial difficulties, if they share the same surname as you, this could show up on your credit file. The best way to find out is to get a copy of your credit file from Experian or Equifax. You can then request a Notice of Disassociation be added to your file to prove you are no longer linked to those people financially, once a financial agreement has come to an end.
3. Plan ahead - keep abreast of what money is coming into your account and leaving your account each month.
4. Pay credit and store card bills on time, and aim to pay as much of the balance off as possible each month to avoid paying extra interest on your purchses.
5. Register on the Electoral Roll so that potential lenders can confirm you live where you say you do.
6. Keep lines of communication open with banks and lenders. If you are struggling to make payments, get in touch with lenders/creditors to work out a plan of action based on your disposable income. Never ignore debts. They won't go away, they just grow and become uncontrollable.

Student Debt
Student Debt: Tips To Avoid Student Debt
Student Debt: Student Debt Rises To £14bn in UK
Student Debt: Student Borrowing FAQ
Student Debt: Students and Credit
Student Debt: What It Costs To Be a Student
Student Debt: Specialist Advice Organisations for Students
Student Debt: Student Debt Case Study

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