A mini-guide to Student Credit Cards - Features, Eligibility, Process, Banks Offering Student Credit Cards, etc.
People don't usually carry a lot of cash in hand for all of their shopping needs - they carry credit cards.
The ‘buy now, pay later’ option has become a trend in India now but it's necessary to have essential knowledge of how it works. These 8 pieces of advice from the richest will help you get financially motivated.
There are a plethora of credit card companies catering to various customer segments in our country - designing cards to meet the general shopping demands of ordinary people.
A select handful cater to certain demographics such as - women, business travellers, and so on. Student credit cards are one such form.
What is a Student Credit Card?
A credit card for college students is known as a student credit card. Any student over the age of 18 is eligible to apply for the credit card because there is no minimum income requirement.
These cards have a 5-year validity period and have lower interest rates. For students who are usually short on funds, they can be a lifesaver.
Let's imagine you're a student in need of a last-minute buy but don't have the finances from your parents or a scholarship. In such a situation, a credit card can help you get by.
Students can make their lives easier by managing their credit cards carefully, whereas mismanagement can lead to a downward cycle of penalty interest penalties and debt.
What are the Features of Student Credit Cards?
Here’s why student credit cards are so popular:
- Credit Limits: The typical credit limit for a student credit card is ₹15,000. This is done to keep cardholders from accumulating debt as a result of their reckless spending.
- Card Validity: Unlike regular credit cards, which have a three-year validity duration, student credit cards usually have a five-year validity period from the date of issue.
- Duplicate card fees: If a student credit card holder loses or has their card stolen, a duplicate card will be created for free or at a very low fee.
- Builds Credit Score: Getting a student credit card (and using it carefully) helps students establish a solid credit score by the time they graduate. It will help the students if they ever want to rent an apartment, buy a cell phone or take out a loan for a house or car in future.
- Joining Fees: Student credit cards usually have no application costs and low annual fees, making account management easy for students.
- Documentation: Student credit cards, unlike most other credit cards, do not require thorough verification. A minimal amount of documentation is required when applying for a card.
- Special deals and rewards: The student cards come with rewards and loyalty programmes that offer cash back or points after a certain amount is spent with the card. These cards can also be used to get special deals and discounts on services and products all over the world.
- Upgradation: A student credit card can be upgraded to a standard credit card at any moment throughout the card's validity period if the cardholder so desires.
What is the Eligibility & Documents Required to Apply?
- Above 18 years of age
- Must be a college going student
- Birth certificate
- Identity card issued by the college/university
- Proof of residential address
- Recent passport size photograph
- PAN card
How can a Student get a Credit Card in India?
With banks offering student credit cards without requiring applicants to produce work documents or tax returns, there must be some confusion about how a student might apply for credit. Here’s how a student can get a credit card in their name:
1. Against security, such as a fixed deposit.
Because you are a student, the card company does not expect you to have a steady source of income.
If you have a Fixed Deposit in your name, you can apply for a Credit Card using this FD account.
You may be qualified for a secured Credit Card against Fixed Deposit if you are a student with no income or credit history, or if you work part-time or volunteer for non-profit organisations.
2. Using money from their savings.
You can simply get a student credit card based on your savings account if you have one.
To get a Student's Credit Card, you don't need to keep track of your monthly income. The decision is purely dependent on your bank relationship.
If you have been a valued customer of the bank, the bank will conduct a background check and approve the request.
3. As an add-on card to their parents' current credit card.
You can get a student credit card by requesting an Add-On Credit Card from a family member who already has one.
The family member who is requesting an Add-On Card should have a strong credit history, which is a significant consideration.
How to Get a Student Credit Card Online?
Here are the steps to apply for a student credit card online –
- Visit the website and go to the credit card section.
- Check your eligibility for the student credit card.
- Fill the online credit cards for students application form.
- Upload the supporting documents on the portal.
What are the Student Credit Card options available in India?
1. SBI Student Plus Advantage Card
The SBI Student Plus Advantage card has a slew of student-friendly features.
Although this card is only available to those who have an SBI educational loan, you can also receive one by creating a fixed deposit at any SBI branch.
You can also transfer a debt from another credit card to your SBI student credit card to reduce your EMI interest rate.
You will be able to save money while paying off your credit card debt.
You may also book train tickets, pay your energy bills, and earn 10 times more reward points when you transact internationally.
The following are some of the card's unique features:
- No annual charge.
- Purchases made in departmental or grocery stores will receive a 2.5% value back.
- In India, all petrol pumps are exempt from a 2.5% fuel fee.
- For every ₹100 spent on the card, you will receive 1 reward point.
2. HDFC Student Add-on Card
The HDFC Student add-on card looks and functions similarly to a credit card, and it is issued to anyone over the age of 18.
The card's expenses are reflected in the parent card's monthly statement, allowing parents to keep track of their children's spending.
Transaction reminders may also be sent to help you keep track of your spending.
Add-on cards do not require a lot of paperwork, and the application process is simple.
Add-on cards can be used to make purchases both online and offline.
Unique features of HDFC Student add-on card:
- The parent card's monthly statement includes expenses from an add-on card. As a
- result, parents can keep track of their children's expenditures. You can also set up transactional alerts to keep track of your spending.
- To keep spending under control, you can set a sub-limit for the add-on card.
- Both online and offline purchases are possible with add-on cards.
3. Axis Bank Insta Easy Credit Card
Any Axis Bank branch can issue this credit card in exchange for a fixed deposit. Cash withdrawals of up to 100% of your credit limit are possible.
This card can be issued with a credit limit of up to 80% of the principal amount of the fixed deposit.
These are some of the card's unique features:
- gives discounts of up to 15% off meals at alliance restaurants.
- In India, all fuel transactions are subject to a 1% fuel surcharge waiver.
- secured with a platinum chip-card.
4. ICICI Bank Student Travel Card
For students who desire to study abroad, the ICICI Bank student travel card is a fantastic option.
You can pay for your application and course costs with this credit card either online or in person.
The credit card allows you to keep track of your daily expenses and can be used at any Mastercard-accepting location worldwide.
This three-year card is available in five different currencies. It offers both travel insurance and aid in an emergency.
The five currencies that can be loaded onto a card are: USD, EUR, GBP, AUD, and CAD. It can be used for both online and offline purchases anywhere in the world.
The joining price is ₹150, the reload fee is ₹100, and there is a cross-currency charge of 3.5%+ GST.
You may also be qualified for an international student identity card (ISIC) membership, which grants you discounts in 130 countries and at over 1,26,000 retailer locations.
The following are some of the card's most notable features:
- Can be used for payments towards cab rentals, air bookings, accommodation and recharge on international prepaid mobile.
- Allows easy online account management.
- Access to 24x7 customer care via international toll-free numbers across 16 countries.
5. HDFC Bank’s ISIC Student ForexPlus Card
HDFC's ForexPlus card, which provides you access to different currencies, is another excellent alternative for students studying abroad.
The transaction amount is charged immediately from the HDFC student ForexPlus card, similar to a credit card.
The card is accepted internationally at all Mastercard and Visa-affiliated merchants.
One of the most appealing aspects of this card is that it is unaffected by market rate fluctuations when you make a purchase.
The following are some of the card's key features:
- They work similar to credit cards and offer its holders an ISIC membership.
- Reload it instantly anywhere or ask someone else to do it for you from any part of the world.
- Other credit card benefits such as free insurance coverage, chip-based security, emergency cash, and discounts on food, books, and accommodation in 130 countries.
6. HDFC Multi-Currency Platinum ForexPlus Chip Card
This HDFC credit card is embedded with PayWave technology, allowing students to make contactless purchases in stores.
Students may save money and time by having 23 foreign currencies on the HDFC Multi-currency Platinum ForexPlus Chip Card, which can contain up to 22 different currencies.
Secure online wallets can be used to transfer funds. Furthermore, this card provides security against fluctuations in foreign exchange rates, which could cause the value of your currency to rise or fall.
Overall, this card is ideal for students who need to travel to multiple destinations and need to carry multiple currencies on one card.
Some of the card's unique features include:
- Protection up-to ₹5 lakh is provided against any kind of theft or misuse of the card.
- Special discounts offered to students to help them make extra savings.
- Complete protection against fluctuating forex rates.
FAQs on Student Credit Card
1. I don't have a job, can I still get a student credit card?
Even if you are a student who is not working, you can apply for a student credit card. A primary credit card may be issued, depending on the student's purchasing habits.
2. Is it possible for a student to have many credit cards as a student?
Because a student will not have an active credit score and will be given a credit card against an existing fixed deposit, he or she will not be able to have several student credit cards.
3. Do you need a certain amount of income to get a student credit card?
Because students are unlikely to have a source of income, banks have developed student credit cards that do not require a source of income. An existing fixed deposit account can be used to apply for a student credit card.
4. What is the procedure for checking the status of my student credit card?
If an add-on credit card has been applied for, you can check the status of the credit card by entering into the primary cardholder's net banking account. Aside from that, the student can inquire about the status of his or her credit card by calling the bank's credit card customer service department.
Student credit cards, in reality, are a two-edged sword. By the time you graduate, if you use them correctly, you will have a financial advantage over your peers.
However, if they are used inappropriately, they can cause long-term harm. Hence, use your student card with caution, regardless of which one you choose.
To avoid debt accumulation, make sure you pay off the entire balance each month. Overall, if you stay to a budget and pay off your debts on time, a student credit card can be really advantageous.