ClareCollegeAndKingsChapel

Does your choice of university affect your future chances?

A study by Which.co.uk has indicated that choosing York University as your place of study may well have an effect on your future finances. This is not how it sounds – there is not some kind of blacklist with the names of all student wishing to apply for credit on it, or indeed any other university for that matter. What the Which article points out however, is that at least 40 per cent of graduates choose to stay in the city in which they studied.

It’s this statistic that may have an impact on your credit score. TotallyMoney.com has released data showing the acceptance (and rejection) rates for credit card applications across the country. The data is broken down by area so it’s possible to see how your area scores. According to theTotallyMoney.com tool, residents of Yorklive in the 65thmost likely area to be rejected for credit cards. Does this mean that going to uni in York could damage your credit score?

I’m not so sure, I don’t believe that moving to an area will have an adverse effect on your credit rating,nor are credit ratings judged by geographical location. However, it is always useful to be aware of the data when choosing which university to attend as the data suggests there is a high chance of staying in that area after graduation.

But before you scratch your chosen uni off your UCAS list, it’s probably best to know how your credit score is judged so you can look at ways to improve it.

Credit is judged on income as well as the behaviour of a cardholder with regard to repayments, which in turn depends on the ability to pay back the money. As income is very often dependent on geographical location, it is in some indirect way that choosing York University over Nottingham, where its residents are the 30th most likely to be rejected for a credit card, would be a sensible option.

Purchasing a credit card can be good for your credit rating as regular, timely repayments illustrate that you are capable of handling your finances, a problem often faced by young people with no credit history. Credit can seem like quite complex business, so it might be advisable to use one of the many comparison tools, like the online credit comparison tool by Totally Money.

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The Yorker
The Yorker is York's best outlet for student journalism independent of the University of York Student Union and the largest student-run business in the city. For editorial queries please contact the Editor at editor@theyorker.co.uk.