How to Choose a Student Credit Card?
Student credit cards are essential financial tools for individuals aged 18–21 with limited or no credit history. The guide on How to Choose a Student Credit Card explains the nuances of eligibility, the application process, and the importance of establishing a credit history.
It emphasizes staying informed and making empowered choices to find the best fit for your unique student journey. Rewards and perks are enticing, but the foundational steps are essential for setting you on a path to financial responsibility.
In Short
Which credit card is better for student?
The Best 5 Credit Cards for Students in India
| Credit Card | Benefits | Yearly Fee | Apply Link |
| HDFC Student Credit Card | Tailored for students
Offers rewards on educational expenses Provides cashback on certain transactions
|
INR 500
(subject to change) |
Apply Now |
| SBI Student Plus Advantage Card | Special discounts on online shopping
Fuel surcharge waiver Flexible payment options
|
INR 499
(subject to change) |
Apply Now |
| ICICI Bank Student Travel Card | Ideal for students studying abroad
Offers forex services Travel discounts Emergency assistance.
|
INR 1,000
(subject to change) |
Apply Now |
| Axis Bank Insta Easy Credit Card | Easy approval
Suitable for those with limited credit history
|
INR 500
(subject to change) |
Apply Now |
| Kotak Mahindra Bank Aqua Gold Credit Card | Designed for first-time credit card users
Easy approval process Low annual fee. |
INR 199
(subject to change) |
Apply Now |
Credit Cards for Students with No Income
Certain credit cards cater specifically to students or individuals with limited income, simplifying the process of obtaining a credit card in the absence of regular income.
- Secured credit cards, which typically require a security deposit equal to the credit limit, reduce the risk for the issuer. Example: State Bank of India Student Plus Advantage Card
- Designed specifically for students, student credit cards often offer flexible income requirements and tailored benefits. Example: HDFC Student Credit Card
- Prepaid credit cards function similarly to secured cards, but with a prepaid amount as collateral. Example: ICICI Bank Coral Credit Card: Against Fixed Deposit.
- A parent’s or guardian’s credit card account can link an add-on card to the student’s account.
Responsible credit card usage is crucial for building a positive credit history, even for those without regular income. Paying full balances on time, understanding terms, and avoiding unnecessary expenses are key. Always check eligibility criteria and terms with banks.
Which Credit Card is Best for Under 18?
Legal age restrictions often restrict young individuals under 18 from accessing credit cards in India. However, financial literacy tools and products are available to educate and instill responsible money management habits. Parents can consider options like FamPay cards, which allow digital transactions within predefined limits.
Some banks offer joint accounts or supplementary cards tied to a parent’s account, fostering financial awareness while adhering to regulatory age constraints.
Credit Card for Students Without FD
| Credit Card | Features | Apply Link |
| HDFC Bank Millennia Credit Card | Tailored for youth
Cashback on shopping, dining, travel.
|
Apply Now |
| ICICI Bank Instant Platinum Credit Card | Designed for no credit history
Quick approval.
|
Apply Now |
| Axis Bank Neo Credit Card | Benefits on shopping, dining, entertainment
|
Apply Now |
| SBI SimplyCLICK Credit Card | Geared towards online shoppers
Rewards on online spending
|
Apply Now |
| Kotak Mahindra Bank Aqua Gold Credit Card | For first-time users
Easy approval. |
Apply Now |
Best International Credit Cards for Students
| Credit Card | Key Features | Apply Link |
|---|---|---|
| Citi Rewards+ Student Card | No annual fee
Rewards program Global acceptance
|
Apply Now |
| Discover it® Student Cash Back | Cashback on purchases
International acceptance
|
|
| Bank of America® Travel Rewards Credit Card for Students | Points on all purchases
No foreign transaction fees |
Apply Now |
What Is a Credit Card?
Credit cards are financial tools that allow individuals to make purchases on credit—borrowing money from a financial institution up to a predetermined limit. They provide a line of credit and require repayment within a specified timeframe.
They offer flexibility and convenience in transactions, both online and offline, and often come with rewards, cashback, and travel perks. Responsible use of credit cards helps establish and build an individual’s credit history, which is crucial for future financial endeavors like loans or mortgages.
The best student credit card helps students manage their expenses efficiently and establish a responsible credit history. It offers rewards, cashback, and other perks. The choice of the best student credit card depends on factors like lower credit limits, special rewards, and educational tools designed to instill financial discipline and independence.
Understanding Credit Card Billing Cycles And Due Date
Understanding credit card billing cycles and due dates is crucial for responsible financial management. The billing cycle influences credit utilization ratio, a key factor in credit scoring. Understanding these cycles helps students manage spending effectively.
The due date is also important for settling outstanding balances and avoiding interest charges. Staying informed about these aspects helps students navigate their credit responsibilities wisely, fostering beneficial financial habits and a positive credit card experience.
Why are Credit Cards Important for Students?
7 Benefits of a Student’s Credit Card
- Building a strong credit history is essential for future financial endeavors such as loans and apartment rentals.
- Lower credit limits on student credit cards; promote responsible usage within manageable limits; and reduce the risk of significant debt accumulation.
- Enhance their financial literacy through budgeting apps, spending insights, and educational resources.
- Early adulthood is crucial for building a positive credit history, which can be advantageous for future financial goals.
- They are frequently available without requiring proof of income, which increases their accessibility for individuals with irregular income.
- Internationally accepted student credit cards are beneficial for students studying abroad or traveling during their academic pursuits.
- Some student credit cards may offer introductory Annual Percentage Rate (APR) offers, allowing cardholders to enjoy a lower interest rate for an initial period.
Pros And Cons of Student Credit Cards
| Pros | Cons |
|---|---|
| It establishes a solid credit history for upcoming financial pursuits. | Inexperienced users may end up in debt if they do not use it appropriately. |
| Credit cards offer educational resources and tools to encourage financial literacy. | Student credit cards may have higher interest rates than other types of cards. |
| With realistic credit limitations, it reduces the risk of accruing considerable debt. | Some cards may carry annual fees or other fees that affect the overall cost. |
| It offers benefits and perks tailored to students, including cashback on regular expenses. | Rewards may be more limited than with regular credit cards. |
| It is often accessible without requiring income proof, making it suitable for students. | Low credit limits may limit your purchasing power for larger expenses. |
Why Get a Credit Card as a Student?
Obtaining a credit card as a student offers numerous benefits, including building a positive credit history, fostering financial independence, teaching responsible money management and budgeting skills, serving as a crucial financial safety net in emergencies, and establishing excellent financial habits.
Specifically designed for students, many credit cards offer tailored benefits and lower credit limits, serving as a practical and educational tool for navigating the financial landscape during college.
Why College Students Should Have a Credit Card?
- College is an ideal time to establish a strong credit history, laying the groundwork for future financial endeavors like housing or loan applications.
- Managing a credit card responsibly teaches important financial lessons, such as budgeting, understanding interest rates, and making timely payments.
- Credit cards offer students financial independence, teaching them to responsibly manage their finances.
- Students can develop beneficial financial habits by wisely using credit cards throughout their lives.
- Having a credit card as a student prepares individuals for financial responsibilities in postgraduate life and beyond.
Final Thoughts
The guide on ‘Which Credit Card is Best for Students?’ provides a comprehensive overview of the best financial options for students, focusing on tailored benefits, lower credit limits, and specialized rewards. It emphasizes responsible usage, building credit history, financial education tools, and avoiding common pitfalls. This guide equips students with the knowledge to make informed choices for a secure and rewarding financial journey.
FAQ
Are credit cards suitable for all students?
Credit cards are not appropriate for all students. Individual financial responsibility and readiness are required. Before applying for a credit card, students must assess their capacity to manage credit sensibly.
How can students establish credit history responsibly?
Students may develop credit responsibly by obtaining a student credit card, making limited purchases, and consistently paying the full debt on time. Keeping credit utilization low and checking their credit record are also important steps.
What steps can be taken to avoid credit card debt as a student?
To avoid credit card debt as a student, prioritize budgeting, use the card only for necessary spending, pay the full balance monthly, and be cautious of the credit limit. Monitor your expenditures on a regular basis and resist the urge to make unnecessary purchases.
What should students do if they can’t make their credit card payments on time?
If students are unable to make credit card payments on time, they should immediately contact their card issuer, explain the circumstances, and look into options such as a payment plan or deferral. Ignoring the problem may result in late penalties and harm to their credit history.
Can students apply for credit cards without an income?
Yes, students can frequently apply for credit cards without an income. Many student credit cards have lowered income limits, making them available to those with little or no income.
Can I have 2 credit cards as a student?
Yes, students can use many credit cards, but they must be managed wisely to avoid financial difficulty. Having many cards may have an impact on credit ratings, so only apply for more cards if necessary and use them sensibly.
Which SBI credit card is best for students?
The SBI Student Plus Advantage Card is popular among students since it provides benefits like discounts on online shopping, fuel surcharge waivers, and flexible payment options.
