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Have you ever really looked at your credit card and tried to figure out what that huge string of numbers really means? Do these card issuers have so many customers that your account number has to be 16 digits long?

You may be surprised to know that all those numbers you see actually do stand for something, and it’s not just who YOU are. Let’s take a look.

Most of the major credit card companies operate on the same system when choosing a credit card number. Other cards like gas cards, department store cards and phone cards go their own way. Let’s concentrate on the ones that all play by the same rules.

The very first digit in the series will be a 3,4,5, 0r 6. This number designates the type of card as follows:

3 = a Travel & Entertainment Card like American Express or Diners Club.

4 = Visa and Visa-branded debit cards, cash cards, etc.

5 = MasterCard and MasterCard-branded debit cards, cash cards, etc.

6 = Discover (more…)

With graduate debt averaging over £12,000, the ability to spread the cost of further education using a student credit card is obviously attractive. Adding to their appeal is the fact that these cards are relatively easy to obtain. Unlike many standard credit cards, they are available to people who do not have a regular, minimum income and credit history. They often come with tempting offers including low rates for an introductory period, shopping discounts and free CDs. Flexing student plastic has the additional benefit of creating a credit history that can be used to support future loan and mortgage applications.

So, with no regular income and credit history, what exactly is the attraction of students for the credit card companies? Well, the fact that graduates can expect to earn, on average, £400,000 more over their lifetime than the national average, means that financial institutions are eager to attract this extra earning potential. Banks and credit card providers know that the general public are reluctant to go through the hassle of changing accounts, so by attracting students early in their career, they are likely to stay with them for life. (more…)