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To what extent does your choice of university affect your future?

20th March 2014
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We all know the problems you can get yourself in with a credit card, but have you considered the issues failed applications can have for your future?

Credit Card rejectionBeing rejected for a credit card can affect your credit rating which in turn can jeopardise your chances of getting business development loans and mortgages in the future. 

If you are looking for a credit card, does where you study affect your chances of success? 

Take Birmingham for example. Birmingham is home to five universities and two university colleges, with an estimated 65,000 students living in the city. It is vibrant, economically strong city, so you would expect it to be a good place to get credit. 

However, according to a new tool released by TotallyMoney.com, the city has been ranked 22nd in a list of places where you are most likely to be rejected for a credit card in the UK. Could the city’s poor ranking be reflective of the huge numbers of students living in the city? 

We know that students’ credit ratings are generally worse than the average consumer given a lack of credit history and employment. But, to make matters worse, the unemployment rate in Birmingham is double the national average and the average earnings for people in Birmingham are below that of the National Average, according to local newspaper The Birmingham Mail. 

While this sounds ominous, it's worth noting that although under a quarter of students that choose to study in Birmingham are actually from the West Midlands, over 40% of the 2010/11 graduating class who found employment within six months stayed within the region. So being a student in Birmingham doesn't seem so bad after all! 

For students coming to a city that ranks so poorly for credit card applications, it is worth being aware of these factors. If you find that managing your finances is difficult and your loan is not stretching far enough it is worth being aware of how credit cards can help but if used incorrectly can make things worse, now and for your future. Credit cards look like a quick solution but as most students don't own any assets, they run the risk of being rejected.

 The fact is that 65% of credit card applications are rejected in the UK each year, so it is not just a problem for students. 

There are ways of improving your chances of being accepted, however. One way is to use comparison tools like the one from Totally Money to find a credit card by checking your eligibility. Using an online tool like this can increase your chances of being accepted by 250%.




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