THINGS YOU SHOULD KNOW ABOUT STUDENT CREDIT CARDS
College students are at life’s crossroads. They become independent newly but not completely self-reliant. This means the credit cannot come easily to them. All banks and financial institutions always look for faithful burrowers. Thus, they are quite concerned about giving credit to people who are not financially stable and do not have the resources to repay the amount they burrow. This is the scenario when a student’s credit card plays its role.
What is a student’s credit card?
These EMI cards are made for college students with no or very little credit history. With small credit limits and rewards, these student credit cards are like stepping stones for getting relevant credit offers in the future. When students pay off their credit card bills well on time and completely, they build up their credit profile which will assist them in obtaining loans in the future.
A student can receive a student credit card under the following circumstances:
- When your parent has a credit card, you can obtain an add-on credit card to the current credit limit.
- If you are working part-time and have a consistent income source and a saving account.
- If you are a college student of 18 years and more than that, you can get a student credit card.
- You can get a student credit card from the provider of your education loan.
Important features of student credit card
- Minimum documentation: contrasting another credit card, a student’s credit card needs minimum documentation.
- Fewer credit limits: Students often have more occasional credit limits when compared with other credit cards, thereby making it very easy to manage their credit.
- Fee relinquishment: Student credit cards do not have any joining fee or have a minimum annual charge, making it easy for all students to maintain credit cards.
- Get a duplicate card without any charge: When a student credit card is lost, stolen, or misplaced, the same card is issued either free or for a very lower fee.
- Deals and rewards: Similar to other credit cards, a student’s credit card is also available with tips and loyalty points that provide discounts on several services and products and cash points and cash back.
- Long validity period: Student credit cards usually have a long validity period, like five years from the issue date, compared to 3 years in regular credit cards.
- Usage flexibility: A student credit card can be utilized for several purposes, such as paying fees for the online course, purchasing books, refilling fuel, etc.
Eligibility criteria for applying for a student credit card:
- Above 18 years of age
- Must be a college-going student
- Birth certificate
- Proof of address
- Recent passport size photograph
- College/university identity card
- Pan card
Here is a list of student credit cards
SBI student plus advantage credit card
- This card is available with several features that help students learn how to manage money effectively. It has been made according to student demographic like capacity for converting all purchases to EMI, fuel surcharging to 2.5% on all fuels charged to the card.
- The card also offers a good rewards program when you spend Rs.100, you earn a cash point which you can redeem for several gifts, or you can use for paying off the credit balance.
- The card has a low rate of interest.
HDFC Bank ForexPlus card
- This card is a boon for students studying abroad and needs easy access to their funds in various currencies. Here HDFC offers a prepaid card that works similarly to a credit card.
HDFC Multicurrency Platinum ForexPlus Chip card
- With this card, students studying abroad can easily access their funds in 20 different foreign currencies. In addition, they can manage their cash using the card and transfer money using safe online wallets.
- Holders of this card can easily keep track of their accounts, make all payments using net banking, and avail of discounts and other deals.
How can a student obtain a credit card in India?
With several banks offering students credit cards without requiring applicants to deposit documents, students are confused about how a student should apply for a student credit card. Here is how you can obtain a student credit card:
- Against some security like a fixed deposit: As a student, you do not have a consistent source of income. You can apply for a credit card against that FD account when you have a fixed warranty in your name.
- Using savings money: If you have a savings account, you can get a student credit card. You will not have to track the monthly income.
- As an add-on card to your parent’s existing credit card: You can obtain a student credit card by applying as Add on a credit card from your parent’s credit card. But they must have a strong credit history, which is a major consideration.
Using a student credit card sensibly can help you establish your credit and then obtain backup financing during emergencies.