Irrespective of whether one is studying in India or abroad, student credit cards are specially designed to suit the needs of college students. You can apply for a student credit card online to manage your daily expenditures, such as buying study materials, transportation, leisure activities, etc. Continue reading to know the key highlights of credit cards for students.
Student credit cards can be applied for against fixed deposits, savings account, education loan, or through government schemes
These students’ credit cards usually have a validity of 5+ years
Student credit cards come with low-interest rates as compared to regular credit cards
Students’ credit cards offer low credit limits to ensure that students do not fall into a debt trap
Much like any other card application, you can initiate the application process for student credit cards online as well as offline. However, do note that some banks may allow only online applications. It is, therefore, wise to discuss this with a bank representative before initiating the application process. The basic steps that you must follow for the online student credit card application process include:
Step 1: Visit the bank’s official website.
Step 2: Fulfil the eligibility criteria and click on ‘Apply Now’.
Step 3: You might be asked to submit a few documents to initiate the process.
Step 4: Once you have uploaded all the necessary documents successfully, click on ‘Submit’.
Since the user base for these credit cards are students, banks usually do not consider the typical credit card eligibility, such as credit score and stable income, when reviewing the student credit card application. Thus, instead of conventional methods, credit cards for students can be purchased by any of the below-mentioned means:
If you have a fixed deposit (FD) in your name, you can use it to apply for student credit online or offline. However, the minimum amount that is eligible for a credit card against fixed deposit may vary from bank to bank.
If you have a family member who owns a credit card, you can get a credit card for students as an add-on card. However, to get the add-on card approved, the primary cardholder must have a good credit history.
If you have a savings bank account with a steady monthly average balance as specified by the issuing bank, you can use it to apply for a student credit card online. Some banks, such as the State Bank of India, also grant these cards (e.g. SBI Student Plus Advantage Credit Card) to people who have got an education loan with them.
A lot of state governments in India have launched programs that offer credit cards for students. Some of the common government programs offering such cards are West Bengal Student Credit Card Scheme, Bihar Student Credit Card Scheme, Jharkhand Student Credit Card Scheme, etc.
The applicant must be 18 years of age or above
The applicant must be enrolled in a university or a college
Since students cannot present any income proof in the form of salary slips or IT returns, banks accept the following list of documents:
Identity Proof: PAN card, Aadhaar card, passport, Voter’s ID, driving licence, or any other government-approved photo ID proof
Address Proof: Aadhaar or any other government-approved address proof
Age Proof: School certificate, birth certificate, passport, and Voter’s ID
Photograph: Passport-size photographs
While they will vary from lender to lender, the general features and benefits of getting a student credit card are discussed below:
A student credit card comes with a limited credit limit so that students do not fall into a debt trap by overspending
A student credit card has a low cash withdrawal limit so that students can use it only for emergencies
Student credit cards offer convenience and quick access to funds
The interest rate is low to ensure easy and convenient repayment
A student credit card has a validity of 5 years
Some banks offer the facility to convert the student credit card to a standard credit card once the cardholder completes his/her college education
As a student credit card helps in prompt repayment of dues, it easily helps the cardholder to build a good credit score
You can earn and redeem reward points and get discounts against student credit card transactions
You can get a student credit card with zero fees and charges
Student credit cards are designed in such a way that college students can manage their finances in an easy and hassle-free manner. With a student credit card, you can enjoy some of the best credit card offers, cashback, and discounts. Moreover, you can even get special discounts and cashback on movie tickets and events along with a fuel surcharge waiver, free airport lounge access, interest-free ATM withdrawal, and more as part of student credit card benefits. What’s more! Transactions made using these cards are also eligible for rewards. The accumulated credit card reward points can then be redeemed against coupons and merchandise available in the bank’s reward catalogue.
Student credit cards usually do not have any joining and annual fees or other associated charges. However, you must contact the issuing institution beforehand to get a clear idea regarding the student credit card fees and charges.
The credit card limit for student credit cards is usually low and may vary from bank to bank.
Ideally, you can pay your bills using the student card only if the biller is available in the list provided by the issuer. Major utility billers include gas, telephone, electricity, insurance, etc. When making the payment for such purposes, select the biller, provide the necessary details, and review the amount to be paid. After this, in the payment option, choose a credit card and pay the bill.
The general steps to check your credit card status are:
Step 1: Visit the bank’s official website.
Step 2: Go to ‘Credit Card’.
Step 3: Enter the application reference ID.
No, a student cannot hold multiple student credit cards.