Which Credit Card is Best for Students?

student credit cards

This guide provides an in-depth understanding of student credit cards, highlighting key factors to consider when choosing the right card for your academic journey. It covers tailored benefits and eligibility criteria and offers guidance on how to maximize your student experience and financial goals.

 

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.

 

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

 

student credit cards

Credit cards for students with no income

Some credit cards are specifically designed for students or individuals with limited income, making it easier to secure a credit card without 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
  • Student credit cards are designed specifically for students, often offering 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
  • Students can obtain an add-on card linked to a parent’s or guardian’s credit card 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.

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Which credit card is best for under 18?

In India, young individuals under 18 are often limited in accessing credit cards due to legal age restrictions. 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

 

Apply Now

 

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 good financial habits and a positive credit card experience.

Students Loan App in India

Why are credit cards important for students?

7 benefits of a student’s credit card

  1. Essential for building a strong credit history, which is crucial for future financial endeavors like loans and apartment rentals.
  2. Lower credit limits on student credit cards, promoting responsible usage within manageable limits and reducing the risk of significant debt accumulation.
  3. Enhance their financial literacy through budgeting apps, spending insights, and educational resources.
  4. Early adulthood is crucial for building a positive credit history, which can be advantageous for future financial goals.
  5. Often accessible without income proof, making them more accessible for those without regular income.
  6. Internationally accepted student credit cards are beneficial for students studying abroad or traveling during their academic pursuits.
  7. 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 of Student Credit Cards:

  1. Creates a good credit background for future financial endeavors.
  2. Provides educational resources and tools to promote financial literacy.
  3. With realistic credit limitations, it reduces the risk of accruing considerable debt.
  4. Provides student-specific benefits and perks, such as cashback on regular expenses.
  5. It is often accessible without requiring income proof, making it suitable for students.

 

Cons of Student Credit Cards:

  1. If not used appropriately, inexperienced users may end up in debt.
  2. Student credit cards may have higher interest rates than other types of cards.
  3. Some cards may carry annual fees or other fees that affect the overall cost.
  4. When compared to normal credit cards, rewards may be limited.
  5. 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 good financial habits. Many credit cards are specifically designed for students, offering tailored benefits and lower credit limits, making them a practical and educational tool for navigating the financial landscape during college.

 

Why college students should have a credit card?

  1. College is an ideal time to establish a strong credit history, laying the groundwork for future financial endeavors like housing or loan applications.
  2. Managing a credit card responsibly teaches important financial lessons, such as budgeting, understanding interest rates, and making timely payments.
  3. Credit cards offer students financial independence, teaching them to responsibly manage their finances.
  4. Students can develop beneficial financial habits by wisely using credit cards throughout their lives.
  5. Having a credit card as a student prepares individuals for financial responsibilities in post-graduate life and beyond.

 

Frequently Asked Questions (FAQs)

1. Is a student credit card better than a normal credit card?

Yes, for students, a student credit card is often a better fit than a conventional credit card. It includes targeted advantages, reduced credit limits, a simpler approval procedure, and important financial education resources.

 

2. 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.

 

3. 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.

 

4. 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.

 

5. 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.

 

6. 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.

 

7. 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.

8. 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.

 

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.

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