The internet revolution is all over us. Students are adept at using the internet today. Students prefer to use credit cards, internet banking, and digital wallets to make online payments. Moreover, students go to different cities or abroad for their higher studies.
A credit card can be a handy tool to have under such circumstances. Banks nowadays have specific products like student credit cards. The eligibility criteria for such student credit cards are elementary.
Let us now look at things you should know before getting your student credit card.
Eligibility Criteria for student credit cards
Generally, banks have strict income norms for approving credit cards. They also look into aspects like the credit history of the applicant. Now, a student applying for the credit card would have neither income nor credit history. Hence, these student cards are unique because they are available to the student community without having to provide proof of income or credit rating. Here are specific eligibility criteria that students should satisfy.
- The student must be a minimum of 18 years of age.
- The student credit cards are not available for school students. Hence, it is imperative for them to be studying in a college or a university.
Students do not have any income. Hence, the banks do not approve high limits. However, the students can join as co-applicants along with their parents and get an add-on card. Under such circumstances, the income and credit rating of the parents is crucial.
Documents Required
Students should keep the following documents ready before applying for a credit card.
- Identity Proof – It can be in the form of Aadhar card, driving license, or PAN card
- Address proof – Aadhar card is an ideal address proof document.
- College ID card – This document proves the student status.
Features of the Student Credit Card
The student credit cards are different from the regular credit cards in many respects. Usually, such cards do not have any application or renewal fee.
- Student credit cards have low limits. Usually, banks do not approve limits more than Rs 15 to 20K. It ensures that the students do not spend recklessly.
- Student cards are valid for five years.
- Student cards are usually available free of cost. They do not have any renewal fees.
Advantages of student credit card
- Using a credit card has become more of a necessity today than a luxury. An independent credit card allows students to order their requirements online and pay for the same using the card.
- Student credit cards come with attractive benefits such as cashback offers, discounts on restaurants, free movie tickets, and so on. These perquisites help to reduce the overall burden on the student.
- Students can use these credit cards for paying their travel bills such as taxi charges, train tickets, and so on.
- They can also buy books and other educational material using student credit cards.
- Student credit cards help the students to build up a credit history. It proves handy when they apply for loans in the future.
- Student credit cards help the students to develop fiscal discipline. When students repay their bills on time, they develop the habit of repaying. It stands them in good stead in the future.
Points to note
- Student credit cards help students to develop a good credit history. They should note to pay the credit card bills in full every month before the due date. Any delay in payment can result in late fees. Default in payment entails charging of interest.
- Credit rating is an essential concept. Students should understand the importance and ensure to pay the credit card bills on time.
- Students should use credit cards wisely. They should not use it for incurring unnecessary expenses.
- Students should avoid using the ‘Cash Advance’ facility available on credit cards. This facility is beneficial, but not advisable to use. You get instant cash to use, but it comes at a substantial cost. This amount attracts interest @ APR from the date of withdrawal to the time of repayment. Besides, this facility entails you to pay Cash Advance Fee.
- Students are adept at using the internet. However, they should be aware of credit card frauds. They should understand aspects like cloning of credit cards and know the repercussions. Students should refrain from sharing their card details, especially the expiry date, CVV number, and PIN with others. It includes fellow students as well. Students should be careful when dealing with credit cards on the internet. They should know about phishing and other fraudulent activities that could lead to compromising of personal details.
Final thoughts
Students should understand the various aspects of credit cards before using them. When you have the facility, use it wisely. Impulsive and reckless usage of student credit cards can land you in deep debt.
Thus, one can define the credit card as a good friend but an evil foe. To know more about the benefits of credit card you can click here.
Nisha Pandey
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very useful information for the students of today’s generation i must say. this is really helpful for new generation. your blog is really well written. i appreciate your effort for writing this. thank you for sharing.
Hey, Very Nice Content and useful article. It’s gonna help me a lot in my work
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the nice article it helpful for me keep it up
I am so impressed with your post that you have shared here, Thanks for sharing such great information with us. Your Post is really helpful for students.
Wow Really useful for students but in my opinion, student has no need to make a credit card, because of unnecessary expenses.
Really useful information because now a days…. only digital transactions are easy
This article is really a useful one for students.
Good Article so helpful keep sharing like this information.
This is very good article, thank you very much for sharing this awesome article.
Hello, Nisha Pandey,
This is very useful post for student this is awesome post thank for share your post
It’s very useful for all because now time it’s used much more.
very nice article,thanks for sharing with us
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I found your site is interesting.