Nowadays the new generation students wanted to get admission in the well-known college or university. Credit cards are found to be very useful in helping the students to deal with the situation when they need emergency funds and they also help students carry a small card in place of carrying paper currency. They also give a huge discount when purchasing something with it. If used wisely, it is a good option to be used in place of the paper notes and coins. In India, there are lots of banks that give a student credit card.
Some banks provide credit cards to the students who have taken student loans from them, for example, SBI student plus advantage credit card. This card nor have an annual fee and also does not have joining fees.
Banks which provide the Student Credit Cards
Below are the list of banks name which provide students credit cards in India:
Some of the best credit cards for students taking security at the top most level are :
- SBI Card Unnati
- SBI Student Plus Advantage Credit Card
- Axis Bank Insta Easy Credit Card
- ICICI Bank Coral Credit Card
- ICICI Bank Instant Platinum Card
Secured Credit Card in India
These cards are issued because of fixed deposit account. This can be a great option for students to take the credit card vibes and they can also get interested in the fixed deposits. You can get the credit card limit up to 40% of the fixed deposit amount.
Apart from this let’s throw some light on other aspects of the student credit card:
- Students can withdraw cash up to the issued credit limit.
- Guaranteed approval. As long as the customer is able to open a fixed deposit account.
- No joining or annual fee is charged.
- Students can earn cash backs on every transaction and they can also get rewards.
What is ADD On Credit Cards?
ADD ON credit cards are the secondary cards issued against the primary card. This will help the students in many cases but your credit score has nothing to do with these add-on cards. They are only meant for ease. Only family members of the primary cardholder can opt for the add on card. The credit limit which is fixed by the primary card will be share with the add-on cardholders. Primary cards are the main card and processing work like changing in credit limit can be done with this card.
Benefits of Student Credit Card?
- Credit Limit: Students will share their parent’s credit limit. This will be higher than what other banks will extend to them.
- Features and Benefits: The secondary cardholders enjoy almost all the features like a primary card owner. This includes accessing discounts, movie and sometimes premium benefits also like lounge access, etc.
- Security: If the student is charged for a wrongful, they can sit back and relax and their money will be returned to them.
Eligibility & Documents Required to Apply for Student Credit Card
The eligibility norms are different which are set by various student credit card providers but some common norms are:
- In case credit cards are issued against student loans, then the applicant must be able to secure an education loan first.
- In the case of the Add-on card, the student must be 18 or above and the family members must have credit cards.
- For a secured credit card a student must be able to secure a fixed deposit account.
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Proof of Income: The Add on cards, secured credit cards, and the cards issued along with education loan does not require any income proof. In case you are a student with a stable job then the banks will be comfortable in providing you with a regular credit card. For a regular credit card, you need to submit income proofs like ITR, salary slips, etc.
How to apply for Student Credit Card Online?
We have discussed the features eligibility and some of the pros. Of the student credit card but now let’s throw some light on the applying procedure of these cards:
- Add On Cards- If a student is 18 years or older then they can ask their family members to opt for an add-on card. The process is quick and only basic KYC documents are required.
- Security credit card- You need to open a fixed deposit account in the bank in case of opting for a secured credit card. If you have opened this account prior then you can ask the bank to give you a credit card against it.
- Credit card against student loan- A student can opt for a credit card against the student loan from the bank. E.g. SBI student plus advantage credit card.
What are the Pros and Cons of Student Credit Card?
We have already discussed the details of a student credit card that how to apply, benefits, etc. So now let’s find out its pros and cons.
Pros of Student Credit Card:
- Helpful in the case of crisis: As big bundles of cash cannot be carried everywhere so in the case of any crisis or emergency like medical, etc., It is found to be very useful. You can pay off through EMI also. It is found best payment option to buy expensive items like expensive books etc.
- Starting off the credit journey: A Student Credit Card helps the student to feel the journey that adults undergo when they have a credit card. It will be beneficial to them in the future than where the credit card is to be swiped and where not so that the bill doesn’t come too big.
- Special discounts: The discounts which a student credit card gives are relatively higher than the discount given in an adult credit card.
- No huge documentation: It does not undergo huge documentation which a normal credit card undergoes.
Cons of Student Credit Card
Along with the Pros, it also has Cons. The big issue is not handling the card properly and swiping it to buy useless things. If its usage is not done positively then the holder can go under debt. If a child misses few payments he/she can go into a debt spiral which is not good for them.
It is recommended that parents should teach their children properly about the positive usage of this card before giving it to the child.
How to use Student Credit Card correctly?
The principles of good credit card usage are fairly simple. Sometimes it is not easy to implement them because they need discipline but they aren’t rocket science. Here are some points which you can follow to use your credit card accurately:
- Only spend the money which you can pay to the bank as the monthly bill.
- Start with one credit card, do not apply for more than one credit card if you are a beginner in this field.
- Never make a late payment.
- Keep your credit card utilization below 30%.
- Always set up a credit limit or a limit for monthly expenditure.
Student Credit Card FAQs
Q1. Which card is best to opt for?
Ans. SBI Student Plus Advantage Credit Card and HDFC Multi Currency Platinum ForexPlus Chip Card come under the list of these cards.
Q2. Can I get a student credit card without a job?
Ans. Yes, you can get this credit card without any job it is not mandatory to have a stable job for applying.
Q3. How much minimum income is needed?
Ans. No minimum income is needed to opt for a student credit card but you must be 18 years or above to opt for it.
Q4. Can minors get a credit card?
Ans. Minors can get an Add-on credit card, the bank gives an add-on credit card to a person of the minimum age of 15 years.
Q5. Can it be used overseas?
Ans. Yes, definitely you use it overseas but note that foreign transaction fee will be applicable in case of any withdrawal or for any payments.
Q6. Other options to send money to kids abroad?
Ans. There are many ways but the most secure and popular are – Traveler’s card, Forex cards, Cash, Bank Transfers, etc.
