Credit Card for Students: When it comes to getting a credit card, students have a lot of different options to choose from. But which is the best credit card for students? There are a few things you need to consider when making this decision.
How much are you going to spend each month? What kind of rewards do you want? And what’s the interest rate?
Here are three of the best credit cards for students, based on their features and benefits.
This card is designed specifically for students and gives their parents the monitor their child’s spending habits. This article provides information on what a student credit card is and on which are the three best student credit cards available in India.
What are students Credit Cards?
A student credit card is a card that is catered specifically to the needs of the. It helps manage the funds and provides easy expenses for students. It helps the students develop good budgeting skills from a very young age.
- Student Credit cards are easy to qualify for as issuers don’t have to produce lengthy documentation.
- They also don’t have to produce any income proof, as it is for a student.
- They also help the students get a good credit score before entering the market.
- These types of credit cards also have a lot of perks like cash backs and discounts on multiple commodities to help save a lot of money for the students.
- Further, they provide handsome reward points that you can redeem for coupons and merchandise on the issuer’s rewards catalog.
- Typically, a student’s credit card has a monthly limit of ₹15,000 and is valid only for 5 years. This helps the students not to fall into the trap of debt.
- Student credit cards are used for several purposes like registering for online courses, buying books, refilling fuel, etc.
- Student credit cards also have very minimum to nil joining fees and low annual charges with low annual charges compared to other credit cards.
How can an Indian student get a Credit Card?
- Against fixed deposit: A student can get their credit card against any fixed deposit that they may have in their name. Banks usually have a certain fixed minimum amount that is to be kept deposited in the student’s name to be able to get a Credit Card.
- As an add-on card: A family member who already has a credit card can help get the student an add-on credit card. This family member, however, must have a good credit score.
- Strong Savings Account: This feature is available in only a few select banks. A student can apply for a credit card based on their strong savings history.
Eligibility for a Student Credit Card?
- Above 18 years of age
- Must be a college-going student
Documents required for getting a Student Credit Card
- PAN card (required by a few banks)
- Birth certificate
- Residential proof
- College ID card (undergraduate or postgraduate)
- College enrolment proof
- 2 passport sized coloured photographs
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List of Best Credit Card for Students
1. ICICI Bank Student Travel Card
Features
- International Student Identity Card (ISIC) membership is worth ₹590.
- 40% discount on excess baggage and 20% discount on courier service by DHL.
- Card Protection Plus insurance worth ₹1,600
- Chroma shopping voucher.
- Lost card/Counterfeit card liability coverage up to ₹5,00,000.
2. HDFC ISIC Student ForexPlus Card
Features
- Forex :
- Available in – USD, Euro, and GBP
- Get money from ATMs in the desired local currency during travel.
- Once loaded, be worry-free about forex fluctuations in these currencies.
- Reloading:
- Instantly reload your card from anywhere across the world through Prepaid Net Banking.
- Safety:
- Be protected from skimming and misuse with the EVM chip in your card.
- Do not stress about damage, loss, or misuse (as with traveler’s cheque/cash)
- Global use:
- Accepted as student identity card worldwide
- It can be used at VISA/MasterCard affiliated establishments around the world
- Global assistance:
- In the event of Loss of Card/card not working, get Emergency Cash delivery assistance service across the globe.
3. HSBC Platinum Smart Value Card (Add-on)
Features
- 10% cashback of up to ₹1000
- 3 times rewards on online shopping, dining and telecom utilities.
- Up to ₹3,000 off on fuel yearly
- Get cashback worth ₹200 on spending over ₹15,000 in a calendar month
Comparison Between the Best Student Credit Cards
| Features | ICICI Bank Student Travel Credit Card | HDFC ISIC Students ForxPlus Card | HSBC Platinum Smart Value Card |
| Given against | Fixed Deposit | Fixed Deposit | Add-On Card |
| Joining Fee | ₹499 | ₹499 | Nil |
| Annual Fee | ₹199 | ₹199 | Nil |
| Reload Fee | Nil | ₹100 | Nil |
| Fuel Surcharge | 2.5% | None | None |
Pros of having a Student Credit Card
- Helps in Crisis: A credit card can be a great asset during a crisis, medical or otherwise. It also allows cardholders to make payments later or pay off through EMIs. This is beneficial for students who have to buy projects, expensive books, etc.
- Starts Credit Journey: A student credit card can be the first step in a person’s credit journey. With responsible usage, students can build a good credit score which will be beneficial when they apply for a loan or credit card in the future.
- Earn Rewards: Most students are tight on cash. In such a case, when credit cards provide cashbacks and several rewards, it can significantly help students and provide just that little extra to help them through the month.
- Strengthen Your Consumer’s Security: Compared to debit cards, chequebooks, and cash, credit cards offer more protection to their users. If a debit card gets stolen, the customer’s account can be drained of all its assets. For a credit card, however, if the theft is reported, the extra cash that you didn’t spend will be removed from your bill.
Cons of having a Student Credit Card
- Although Credit cards have many benefits, if not used carefully, they can put a person in debt in only a matter of a few months.
- So, if the student misses a few payments, the debt can spiral into a large sum making it difficult to pay on time.
- Considering all this, parents should play a proactive role in their kid’s financial life.
- While credit cards are the perfect opportunity for parents to monitor their kids’ expenses, they should also keep in mind the risks associated with them and guide the kids accordingly.
- Late payment affects the credit score. The more the delay in payment, the worse the credit score gets.
- This, however, can be fixed by paying the debt that has been accumulated.
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FAQ’s Related to Student Credit Cards
Q1. Can I get a student credit card even though I don’t have a job?
Answer: Yes, based on your spending habits, you can get a primary Credit card without a job.
Q2. Can a student have multiple student credit cards?
Answer: No, students can’t have more than one credit card.
Q3. How to check my student credit card status?
Answer: In case of an add-on card, you can log in to the primary cardholder’s account and check the status.
Q4. Can Minors get student credit cards?
Answer: Yes. Some banks extend add-on credit cards to students as young as 15.
Q5. What is the maximum credit limit that a student credit card can have?
Answer: The credit card limit for students depends on the banks. For different cards, it is different. The bank will inform you when the limit has been set.
Q6. Can I use an Indian student credit card overseas?
Answer: Yes, certain credit cards avail the foreign currency feature. There will, however, be a fee applicable for transactions in foreign currency.
Q7. Can I give my credit card to my child, who is attending college in a different city?
Answer: You shouldn’t give your credit card to your children. A credit card should be used by the person whose name is on the card and no one else. Hence, it is advised not to give your card to anyone else.
Q8. How can I send money to my child abroad?
Answer: There are several ways to send money to your children abroad. These are as follows:
Cash
Forex Cards
Travelers Cheque
Bank Transfer, many countries allow foreigners to open a bank account. You can send money via Foreign Outward Remittance.