Credit Card for Students – Creditcardcustomercare

Introduction

In recent years, credit cards have become an essential financial tool for individuals in India, including students. While credit cards are often associated with working professionals, students can also benefit from having one. A credit card for students can help them manage their daily expenses, build a credit score, and enjoy various rewards and benefits. However, with so many options available, choosing the right credit card can be overwhelming, especially for first-time users. In this blog post, we will guide you through everything you need to know about credit cards for students in India, including their benefits, features, eligibility criteria, and how to apply.

What is a Student Credit Card?

A student credit card is a type of credit card specifically designed for students. These cards are usually tailored to meet the financial needs of students, offering features such as low credit limits, rewards on everyday purchases, and exclusive benefits for educational expenses. Student credit cards are a great way for young individuals to start building their credit history and develop healthy financial habits.

Benefits of a Student Credit Card

Building Credit Score: One of the most significant advantages of having a student credit card is that it helps you build a credit score from an early age. A good credit score is essential for future loans, credit card approvals, and even when applying for jobs or renting an apartment.
Rewards and Cashback: Many student credit cards offer rewards, cashback, and discounts on everyday purchases, such as dining, shopping, and fuel. These rewards can help you save money and make the most of your expenses.
Emergency Funds: A credit card can serve as a safety net during emergencies. Whether it’s unexpected medical expenses or urgent travel needs, having a credit card can provide you with immediate access to funds.
Convenience: Carrying a credit card is much more convenient than carrying cash. It also allows you to make online transactions, book tickets, and shop online with ease.
Financial Discipline: Using a credit card responsibly can help you develop financial discipline. By keeping track of your expenses and making timely payments, you can avoid overspending and maintain a healthy financial routine.

Features of Student Credit Cards

Student credit cards come with several features that make them ideal for young users. Some of the common features include:

Low Credit Limit: Student credit cards usually have a lower credit limit, which helps students avoid overspending and manage their finances better.
No Annual Fee: Many student credit cards do not charge an annual fee, making them more affordable for students.
Rewards and Cashback: As mentioned earlier, student credit cards offer rewards, cashback, and discounts on various categories, including dining, shopping, and fuel.
Exclusive Benefits: Some credit cards offer exclusive benefits for students, such as discounts on movie tickets, online courses, and subscriptions to popular services.
Easy Eligibility: The eligibility criteria for student credit cards are generally more flexible compared to regular credit cards. Students can apply for a credit card even if they don’t have a steady income, provided they meet the issuer’s requirements.

Eligibility Criteria for Student Credit Cards

The eligibility criteria for student credit cards may vary depending on the issuer, but here are some general requirements:

Age: You must be at least 18 years old to apply for a credit card. Some issuers may require you to be 21 years or older.
Student Status: You must be a student enrolled in a recognized educational institution. This could be a college, university, or even a vocational training program.
Income: Some credit card issuers require students to have a source of income, such as a part-time job, internship, or scholarship. Others may not require income proof but may ask for a fixed deposit as security.
Credit Score: While some credit card issuers may not require a credit score for student credit cards, having a good credit score can increase your chances of approval.

Documents Required for Student Credit Card

To apply for a student credit card, you will typically need to provide the following documents:

Identity Proof: Such as a valid Aadhaar card, PAN card, passport, or voter ID card.
Address Proof: Such as a utility bill, rental agreement, or bank statement.
Proof of Student Status: Such as a college ID card, admission letter, or bonafide certificate from your educational institution.
Income Proof: If required by the issuer, you may need to provide proof of income, such as a salary slip, internship certificate, or scholarship letter.
Photographs: Recent passport-sized photographs may be required as part of the application process.

How to Apply for a Student Credit Card

Applying for a student credit card is a straightforward process. Here are the general steps you can follow:

Research and Compare: Start by researching different student credit cards available in the market. Compare their features, benefits, fees, and eligibility criteria to find the one that best suits your needs.
Check Eligibility: Once you have shortlisted a few credit cards, check the eligibility criteria for each. Ensure that you meet the age, income, and student status requirements.
Gather Documents: Collect all the necessary documents, including identity proof, address proof, proof of student status, and income proof (if required).
Visit the Issuer’s Website or Branch: Most credit card issuers allow you to apply online through their official website. You can also visit a bank branch in person to apply.
Fill the Application Form: Complete the application form with accurate personal and financial details. Make sure to review the form carefully before submitting it.
Submit Required Documents: Upload or submit the required documents along with your application. Some issuers may require physical copies of the documents, while others may accept digital versions.
Await Approval: After submitting your application, the issuer will review it and verify the details. This may take a few days to a week, depending on the issuer’s processing time.
Receive and Activate Your Card: Once your application is approved, you will receive your credit card via mail or courier. You may need to activate it by calling the issuer’s customer care or through their online portal.

Common Mistakes to Avoid When Using a Student Credit Card

While a student credit card can be a valuable financial tool, it’s important to use it responsibly. Here are some common mistakes to avoid:

Overspending: One of the most common mistakes students make is overspending with their credit card. Remember that a credit card is not free money; it’s a loan that you need to repay with interest.
Missing Payments: Failing to make timely payments can lead to late fees, interest charges, and a negative impact on your credit score. Always aim to pay your full balance on time.
Using Multiple Cards: Applying for multiple credit cards and using them irresponsibly can lead to debt traps. Stick to one card and use it only for necessary expenses.
Ignoring Fees and Charges: While many student credit cards come with no annual fee, there may still be other charges, such as late payment fees, interest charges, and foreign transaction fees. Make sure you understand all the fees and charges before applying.
Not Monitoring Expenses: Not keeping track of your expenses can lead to overspending and financial trouble. Regularly monitor your spending and ensure that you stay within your budget.

Top Student Credit Cards in India

Here are some of the best student credit cards available in India:

SBI Student Plus Credit Card

Features: No annual fee, rewards on education expenses, fuel surcharge waiver, and exclusive benefits for students.
Eligibility: Available for students aged 18 and above with a fixed deposit as collateral.

HDFC ForexPlus Card

Features: No foreign transaction fees, free insurance cover, and rewards on international spending.
Eligibility: Available for students traveling abroad for studies or internships.

Axis Bank Insta Easy Credit Card

Features: Easy eligibility, no income proof required, and rewards on everyday purchases.
Eligibility: Available for students aged 18 and above with a fixed deposit as collateral.

ICICI Bank Student Travel Card

Features: No foreign transaction fees, free insurance cover, and exclusive benefits for international travel.
Eligibility: Available for students traveling abroad for studies or internships.

Yes First Student Credit Card

Features: Rewards on education expenses, fuel surcharge waiver, and exclusive benefits for students.
Eligibility: Available for students aged 18 and above with a fixed deposit as collateral.

Conclusion

A student credit card is a great financial tool for students in India, offering numerous benefits and helping them build a strong credit score. By choosing the right credit card and using it responsibly, students can enjoy financial convenience, rewards, and exclusive benefits while developing healthy financial habits. Before applying, make sure to research, compare, and understand the features, fees, and eligibility criteria of different student credit cards to make an informed decision.

Remember, a credit card is not just a piece of plastic; it’s a tool that can help you manage your finances effectively if used wisely. So, if you’re a student looking to take control of your financial journey, consider applying for a student credit card today!