Everything You Need to Know About Student Credit Cards

By BankBazaar | January 9, 2017

Everything You Need to Know About Student Credit Cards

Isn’t there a sense of independence and freedom to be able to buy what you want, when you want? Do you crave for that kind of financial freedom, but think you are too young for it? Don’t worry. Just remember that Credit Cards are not only for salaried adults.

If you want to take your financial matters in your hands, opt for a Student Credit Card.

What’s a Student Credit Card?

A Student Credit Card is specially crafted for students aged over 18 years. If you are just out of high school, applying for college or even pursuing a higher degree, you could get a Student Credit Card for yourself.

What’s the difference between a normal Credit Card and a Student Credit Card?

Since a Student Credit Card is designed keeping students in mind, the application process is pretty simple. The credit limit is also set low in order to avoid risks of over spending. These cards come equipped with student-friendly offers and rewards.

Student Credit Cards also offer low interest rates with easier and more flexible repayment options.

Additional Reading: Credit Card And Your College-Going Kid: Is It A Good Combination?

Why Get a Student Credit Card?

While the aspect of the freedom to spend is always delightful, the real reason you should be getting a Student Credit Card is to become financially responsible. A Credit Card sure does maximise your chances to spend at will, but it also helps you keep track of your expenses and can help you start building a good credit history early on.

Additional Reading: How To Maintain A Good Credit History

A good credit history can help you avail Loans at competent interest rates.

Advantages

  • You receive monthly statements and regular payment reminders via SMS and email.
  • These cards are accepted almost everywhere, even overseas.
  • If you’ve lost your card, you could always get a new one issued. Be sure to block your card and take necessary steps to avoid fraud though.
  • What happens when you pass out of college? Just upgrade the Student Credit Card to a regular Credit Card of your choice.

 How do I apply for a Student Credit Card?

Getting a Student Credit Card is pretty simple. You need to be a minimum of 18 years old to qualify and apply. You will need to supply your college/institute student ID, a date of birth proof, 2 passport-size photos (colour), address proof, college enrollment proof and PAN number (mandatory for some banks).

Additional Reading: Credit Card Handbook: All Questions Answered

Types of Student Credit Cards

There are different types of Student Credit Cards. After filling out the application form, you can get a card against one of the following:

If you have a Fixed Deposit in your name, you could request the bank to give you a Credit Card against it. Your FD account should have a certain amount in it for your card to get approved.

If you already have a Savings Bank Account and a good savings history, you could request your bank to give you a Credit Card against it.

  • An Add-on Card

Another way to obtain a Student Credit Card is to get an add-on card on one of your family member’s Credit Cards. However, the family member would have to have a good credit history and Credit Score.

Most big banks in India offer Student Credit Cards. Some popular cards are:

  1. HDFC Multicurrency Card
  2. SBI Student Plus Advantage Card
  3. Punjab National Bank Global Classic Credit Card
  4. Andhra Bank Visa Classic Card
  5. ICICI Bank Student Travel Card
  6. Axis Bank – ISIC Forex Card
  7. Citi Platinum Select Master Card

All That Glitters Is Not Gold

Many banks offer attractive joining perks like electronic gadgets as a joining reward. Do not get carried away with freebies. Always choose a card that suits your needs the best. You should always check for the interest rates charged on outstanding amounts and payment flexibility.

How Do I Make the Most of My Student Credit Card

If you have already applied for a Student Credit Card, you are already on your way to becoming financially responsible. Here are a few things you could do to make the most of your Credit Card:

  • Set a low credit limit in the beginning to get the hang of your expenses.
  • While you could always carry over a balance amount to the next month, it is better to pay off the balance on a monthly basis. This will help you build a solid credit history.
  • Use the rewards or perks that come with the card carefully. Use it when you absolutely must. Splurging is not advisable. Spend responsibly.

Additional Reading: 14 Money-Saving Hacks For Students

So, if you have some spare money, you might as well put it in a Fixed Deposit and apply for a Credit Card against it.

Pursuing a higher education degree is pretty challenging when it comes to finances. If you have already taken an Education Loan, you could easily cut down on your expenses and manage them better with a Student Credit Card.

Don’t want a Student Credit Card? Get a Debit Card instead.

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