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Natwest credit card review: Student

The Natwest Student credit card seems a very competitive financial tool for Natwest Student Current Account holders aged over 18. It enjoys a competitive 18.9% APR, zero membership fees and brings bonus features specifically designed to promote a better student experience.

Natwest Student credit cards certainly provide payment facilities expected of more mainstream credit cards. They also rank well against those few student credit cards offered elsewhere.

Substantial extra benefits include: regular shopping discounts, special money-off offers, occasional free gifts and access to the marvellous Natwest Wine Club. These aren't like the introductory gimmicks other cards push but are in fact ongoing perks enjoyed by Natwest Student cardholders.

With a maximum credit limit of £500, plus a 56 day interest-free credit provision for settled accounts, the Natwest Student credit card gives a respectable opportunity to establish good credit ratings whilst lessening the chance of falling into bad debt.

Worldwide daily withdrawals up to £300 are possible at all ATM machines displaying a MasterCard logo - making Natwest's Student credit card ideal for field trips and term break vacations abroad.

24 hours a day online account management facilities plus repayment by direct debt, phone and at Natwest branches all make this one of the easiest credit cards to use anywhere.

And while s75 of the Consumer Credit Act 1974 provides good basic protection on all credit card purchases over £100 and under £30,000, the Natwest Student credit card provides additional fraud monitoring services (with free text alerts). Additionally, for internet transactions, further security against online fraud is promised by signing up to the Natwest Secure service (backed by Mastercard SecureCode).

In a nutshell, the Natwest Student credit card gives the financial flexibility students need with additional, attractive perks and provides for complete peace of mind.

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 Natwest Student credit card
Balance Transfer Fee	None	-
Cash Withdrawal Rate	27.95% p.a. (variable)	You can 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 - 10% off UK short breaks with Superbreak - 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	Wine Club Offers	Enjoy special offers and the occasional free gift from the Natwest Wine Club.

Cardholder Services & Extras
Online Account Management		You can manage your account online if you have a Natwest current account
Internet Fraud Guarantee		If your card has been used on the internet without your knowledge or consent, Natwest guarantee not to hold you liable for the fraudulent transaction if you have signed up to Natwest 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 Natwest 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

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 - £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 Natwest 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	Natwest	The bank who issues this credit card.
Card Advertiser	Natwest	The company who advertises and promotes this credit card.

Natwest Student Credit Card User Reviews

Review Continued...

As you would expect from a top high street name, the Natwest Student credit card offers a superb opportunity to build a good credit history throughout student years. Just how attractive is it though?

Issues of Interest

The Natwest Student credit card's 18.9% APR figure is competitive for a card of this type and taking into account the bonus features and nil annual membership fees, it proves a competitive product in today's volatile credit market. Importantly, interest doesn't apply where accounts are settled within 56 days.

Lenders take a gamble when offering student credit cards. Borrowers may have limited income or no credit history, especially young students, and creditors bank on graduates attracting better-paid jobs and staying loyal beyond those years of study (and, of course, enjoyment!).

Students could perhaps access mainstream credit cards with lower APR% rates during, for example, periods of employment during vacations. But the perks and other useful features of the Natwest Student credit card would certainly be missing.

Withdrawal Symptoms

With £300 a day withdrawals potentially available on the Natwest Student credit card, there is also a £500 credit limit on hand for cash advances and money transfers to help avoid bad debt situations. These facilities are subject to status ... and the only way to cultivate that status is by not going overboard with the facilities on offer here.

A 56 day interest-free credit period applies on purchases so long as the balance is paid fully and on time with previous months' balances also settled. This is one of the card's most attractive features

Monthly APR% applied to purchases is 1.456% where the balance is not cleared in time. The figures for cash advances and money transfers are 2.075% and 1.456% respectively. Periods start running from the transaction date on purchases and cash advances - the date debited to the account applies for money transfers - and end when repaid in full. It therefore makes sense to use this card as responsibly as any other.

If full repayment isn't possible and money is especially tight, Natwest allows minimum monthly repayments of 2.25% of the outstanding balance - rounded down to the nearest pound - or £5 (whichever is highest). This compares favourably against other student deals such as, for example, 5% on the Barclaycard Student credit card. However, minimum repayments on any credit should be avoided if possible so that balances reduce and interest and charges don't multiply dramatically.

In common with all credit cards after recent High Court rulings, standard default charges are £12 if the account is over the limit at any time during a statement period or if payments are made late. A £10 administration fee also applies in the event of cheques or direct debits not being honoured. Again, use the card sensibly.

Cash advances are subject to a handling fee of 3% (with a minimum £3 payable) but this isn't charged for gambling transactions (where the higher cash advance interest rate does apply - as on most cards). Foreign exchange transactions and purchase of travellers' cheques carry a currency conversion fee of 2.75%. This is all in line with other cards (where such fees are usually about 2% - 3% of value of transaction). Additional copies of printed account statements cost £3 so it's worth considering managing the card online.

In Order and Out of Order

Payments to the card are allocated in the following order: Interest, fees & charges, special offer balances, purchases and then cash advances & money transfers.

Transferring balances from other cards isn't permitted on Natwest Student credit card accounts but this is also true of most student credit cards. The few that do allow transfers tend to have a higher APR% and the Lloyds TSB Student Credit Card, for example, weighs in at 19.9% APR.

Feeling Perky

Freebies attached to the Natwest Student credit card currently include: 25% discount on Lonely Planet guide purchases of £10 or more, 10% off UK short breaks with Superbreak, £5 discounts from Firebox, 15% savings with Kitbag.com and one month free DVD rentals from MyMovieStream (now known as OutNow).

The Natwest Student credit card gains discerning students access to the exclusive Natwest Wine Club which boasts remarkable savings on over 1,000 different wines.

A healthy hike up a foreign mountain or a night slumped in front of a movie? All tastes are catered for!

Secure in the Knowledge

Section 75 of the Consumer Credit Act 1974 covers all credit card purchases over £100 and under £30,000. If a problem arises from a purchase, the card company is held as being equally liable in law as the actual supplier is. Such problems may include a consumer contract breach, false or misleading information, defective goods or non-delivery. Who you approach first with your complaint is entirely your own choice by law!

While s75 provides good basic protection, the Natwest Student credit card also provides additional fraud monitoring (with free text alerts). Important in these days of increased identity fraud and, perhaps, where sharing term-time accommodation. This is definitely a plus point, though one would hope never to have to use it.

Further security against online fraud is also available by signing up to Natwest Secure (arranged in association with Mastercard SecureCode) and this option should be offered when applying for the Natwest card.

Final Word

The Natwest Student credit card provides a superb opportunity to build a good credit history throughout student years. It also lays a solid foundation for the professional life expected to follow.

Used sensibly, the Natwest Student credit card can help deal with occasional periods of minor financial difficulty all students on a budget sometimes face. It's also there to help fund the enjoyable times that make student life more fun and so memorable. Recommended.

Apply Online for Natwest Student credit card »