SPEND RESPONSIBLY - Managing credit for students

Keep up regular repayments

Making regular payments is important, not only for avoiding fees, but for keeping your credit history healthy. Some people think it’s better to save up for a few months and then pay the card balance off in full. But nothing could be further from the truth. For every month you don’t send in at least a minimum payment, a bad mark appears on your credit report—even if you pay your balance in full the next month.

Don’t regard the minimum payment as a recommended amount, but rather as the absolute minimum you must pay - and the date by which you must pay it, to keep your account current.

If you do carry a card balance from month to month, it’s still worth minimising your interest charges by paying off your balance as soon as possible. Try aiming to double or triple the minimum repayment.

One-off purchases

A low cost source of funds for one-off, big ticket items may be your student union or university or college administration. Student loans may be provided for small sums – generally up to $1,500, and most need to be repaid before graduation. Competition for them is intense and the money usually goes to students with a good academic record.