We now live very firmly in a credit driven society. It is general practice to buy things now and pay later and the easiest way to do this is with our ‘flexible friend’ (a credit card). Although credit cards are readily made available to most of us, by no means are all people eligible for the same deals.
Student Credit Cards
General credit cards
Managing you credit card account
If you are lucky enough to get one of these deals, there are some points to follow to ensure that you get the most from the deal and don’t waste all of your savings after the deal expires.
Charge cards are associated with a bank account, however they do have a credit limit attached to them. They will give you the same spending power as a credit card but any balance on the card will be transferred to your account either weekly or monthly in full. This means that you will need enough money in your account, or a big enough overdraft limit, to cover the balance on the charge card.
Debit cards have no credit limit. Instead, money comes out of your account as soon as you make the purchase. You need to ensure that you have the money or the credit on your account before you make the purchase or it will be rejected.
These are becoming really popular. An amount of money is transferred onto a smart card which is then used in place of cash. The card can be used in shops and on transport to make payments using a chip and pin system. When all of the money on the card has been used up, it can be topped up again online. SQuidcard (www.squidcard.com) is aimed at students - it means that they don't have to carry around cash.