What Kind of Credit Card is Suitable for a Student?

Being a college student brings a whole new world of expenses to your life. A student credit card could be a helpful way to take care of your expenses. These cards have the basic features of a credit card (CC), such as interest free periods, earning rewards, discounts, etc. Getting a credit card free of cost would be a great tool for students to learn financial responsibility and build their credit score.

College students above the age of 18 can apply for an online CC, without the need for any income proof documentation.

Benefits of Student Credit Cards

  • You can easily qualify for student credit cards, since you do not need to produce lengthy documents as proof of income. Plus, using the card responsibly will help you build a good credit score even before you graduate from college.
  • You can use the credit card for online payments and check out various perks and offers, like cashback and discounts, that can help you save a lot of money. You can redeem coupons and merchandise from the issuer’s catalogue too.
  • This type of credit card not entirely free but it does have a credit limit of up to ₹15,000, which is valid up to five years so. This helps ensure that you don’t spend recklessly with the card. This card can also be used to enroll into courses, buying books, refilling fuel and many more. And since this card has a lower joining fee, it is easier for you to maintain and use it.

Eligibility Criteria

Student credit cards usually have simple eligibility criteria. Here are the common documents you need to prove that you are eligible for an online CC:

  • A government approved photo ID Proof, like your PAN Card
  • Any government approved residential address proof, like your Aadhar Card
  • Birth Certificate
  • Passport-sized photographs
  • A proof of enrolment, such as your college identity card

However, the eligibility criteria differ from bank to bank. So, make sure you check the criteria and the application procedure for your chosen bank.

How to Get Student credit Card in India?

Here’s what you need to do to get a student credit card issued in your name in India:

  • Applying for a credit card against a fixed deposit that is in your name might allow you to apply for a credit card online or offline. However, the minimum amount that should be in the fixed deposit varies from bank to bank.
  • Another option by which you can apply for a credit card is by asking for it as an add-on card. If a member of your family already owns a credit card, you can add your student card against their card. However, you must ensure that the primary cardholder has a good credit history to be eligible for an add-on card.
  • Some banks also allow the issuance of student credit cards against a savings account, by checking its history. If you have an account with steady average balance, you can use it to apply for the card.

A student may enter the credit card industry to manage their expenses on their own. However, make sure you check all the terms, conditions, fees and charges before making a final decision.

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