Credit Card Comparison HomeCredit Card ReviewsRBS Student Credit Card

RBS credit card review: Student

IF you have a student account with the Royal Bank of Scotland already the RBS student credit card could offer you both the peace of mind of purchase protection and an extra way to borrow without getting into bad debt.

As a Royal Bank of Scotland account holder already you will own a student account with a large overdraft facility so you could also use the RBS student credit card for short-term borrowing when you're up to your overdraft limit.

The credit card's fairly modest credit limit of £500 and standard up to 56 days interest free would help you to achieve this.

As a student you are likely to be new to credit: if that's the case, careful use of the RBS student credit card is a good way to build up a credit history.

Under Section 75 credit card purchases are protected by law. So using your RBS credit card for buying something over £100 offers protection against fraud and unforeseen circumstances such as the company you bought from going out of business.

The student credit card also offers active fraud monitoring, including a free text alert service if misuse of your credit card is suspected. By registering to RBS Secure, a service run by MasterCard SecureCode, you can also take advantage of protection against online fraud.

Finally, the RBS student credit card allows you to take advantage of the shopping discounts and money-off offers available to other RBS credit card users.

Interest Rates and Fees
		Notes..
Typical APR	18.9% APR (variable)	The typical APR is the rate most people are offered.
Balance Transfers	n/a	Balance transfers are not permitted on the RBS Student credit card.
Balance Transfer Fee	None	-
Cash Withdrawal Rate	27.95% p.a. (variable)	You can only withdraw up to £250 per day depending upon your available credit limit.
Cash Withdrawal Fee	3% (£3 minimum)	-
Annual Fee	None	-
Foreign Transaction Fee	2.75%	This fee will be charged if you make a purchase or cash withdrawal in a foreign currency.

Rewards
		Notes..
Reward #1	Shopping Discounts	- 15% off Kitbag.com - £5 voucher for Firebox.com - 30 free prints & 15% off gifts at Snapfish - 1 month free DVD rentals at MyMovieStream when you subscribe to a package - 25% off Lonely Planet titles when you spend £10 or more
Reward #2	Travel Discounts	Travel discounts when you use your RBS credit card at rbstravelservice.co.uk. Discounts include an extra 5% off last-minute bargains, extra savings on airport car parking, car hire, airport hotels, and discounts on flights including low cost airlines.
Reward #3	Wine Club Offers	The Royal Bank Wine Club has special offers when you pay with your RBS credit card.

Cardholder Services & Extras
Online Account Management		You can manage your account online if you have a Royal Bank of Scotland current account and use digital banking.
Internet Fraud Guarantee		If your card has been used on the internet without your knowledge or consent, RBS guarantee not to hold you liable for the fraudulent transaction if you've signed up to RBS Secure (a free service in partnership with MasterCard SecureCode).
Fraud Monitoring		Active Fraud Monitoring with Free Mobile Text Alerts Choose SMS text alerts and receive a text message instead of a phone call if RBS spot anything suspicious on your account.
Identity Protection
MasterCard SecureCode		An extra layer of security when shopping online. Register and set up a password-protected identity-check when you shop online with participating online retailers.
Purchase Protection Insurance
Purchase Delivery Insurance
Comprehensive Travel Insurance
Travel Accident Insurance
Travel Inconvenience Insurance
Assistance Abroad
Emergency Card Replacement
Other Extras
Optional Extras	These are extras that you can choose, but you will have to pay for them. - Card Protection - Identity Protection Cover - Payment Protection.

Payments & Payment Details
		Notes..
Credit Limit	£250 minimum, £500 maximum	Credit limit is subject to status.
Interest Free Period	Up to 56 days	For purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time. There is no interest free period on cash advances or money transfers.
Minimum Monthly Payment	2.25% (£5 minimum)	The minimum monthly payment will be the greater of: - 2.25% of your outstanding balance (rounded down to the nearest pound), OR - The amount you owe over your credit limit less any overdue amounts from previous statements, OR - £5.
Allocation of Payments	Interest on Special Offers » Other Interest, Fees & Charges » Special Offers » Purchases » Cash Advances & Money Transfers	-
Default Charges	£12	- Returned Payment: £10 - Late Payment: £12 - Exceeding Credit Limit: £12
Copy of Statement Fee	£3	This is the fee you will be charged for duplicate statements.

Card Details
		Notes..
Online Application	Yes	Only available to RBS student current account customers.
Card Type	Student	-
Payment Company	MasterCard	The company who provides the payment technology and infrastructure to allow you to use this credit card. Retailers and ATM machines displaying the 'MasterCard' logo will accept this credit card.
Card Issuer	Royal Bank of Scotland	The bank who issues this credit card. The Royal Bank of Scotland plc 36 St Andrew Square Edinburgh EH2 2YB
Card Advertiser	Royal Bank of Scotland	The company who advertises and promotes this credit card.

Review Continued...

The RBS student credit card proves that borrowing outside of conventional student bank accounts needn't be a risky business and, in fact, can help you to manage your money without getting into bad debt.

A Little More to Borrow

The obvious attraction of a student credit card is the opportunity for stress-free borrowing when money is tight.

With a typical APR of 18.9% the RBS student credit card is not a good choice for long-term borrowing, however, especially since, as a student, you will probably have more effective forms of low or no-interest borrowing on offer.

You can borrow up to £500 interest-free, however, providing that you pay it back within 56 days. That facility would be perfect if you often find yourself out of pocket just before your student loan is paid, for example.

Since RBS allows you to manage your accounts online, transferring money in this way should be pretty simple and, importantly, instant.

Note also that interest-free borrowing is dependent on paying your previous balance in full and on time and that once your balance rolls over you are obligated to make a minimum repayment each month of either 2.25% of your balance or £5, whichever is the greater.

A Little more Security and some Extras

Purchasing expensive items on a credit card entitles you to protection that you don't have when you use cash, cheques or debit cards.

Under Section 75 of the consumer credit act credit card purchases over £100 that turn out to be faulty, damaged, mis-sold or just not delivered can be claimed back from your credit card company.

As well as this general credit card protection you can take advantage of the services specific to RBS. By registering your credit card to RBS secure you can claim back any fraudulent use of your credit card online, you can also register for free text alerts if fraudulent use is suspected. You can also pay for extra protection against identity fraud or - with Card ProtectionPlus - against your wallet or phone being lost or stolen.

There's no reason why, as a student, you should be excluded from these higher levels of security for your money.

The RBS student credit card does offer more than basic protection, however. There are discounts on a range of products including 10% off at Hewlett Packard, 15% off iPods and accessories at iworld.co.uk and 25% off Lonely Planet titles when you spend over £10.

For the (possibly more well-heeled) student there are also discounts and special offers from the RBS wine club.

... But no more Cash

A disadvantage is that the RBS student credit card is not suitable for withdrawing cash except in emergencies.

With a prohibitive 27.95% interest rate on cash withdrawals plus a 3% 'handling fee' of a minimum of £3 this student credit card, as with all credit cards, discourages it.

Even if you do decide to get out cash you are limited to £300 a day as part of your existing £500 credit limit.

As long as you are aware of these prohibitions, however, there's no reason why you can't make use of this credit card since most retailers accept credit cards in any case.

If using your RBS student credit card abroad you will be subject to a 2.75% transaction fee.

Final Word

If you're an RBS student customer looking to improve your credit rating, get more protection on your purchases, borrow a little extra or just get some great discounts then the RBS student credit card should be your next move.

Apply Online for RBS Student credit card »