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Choosing the Best Credit Card for Students

Student Credit Cards are special credit cards that can be availed by students who are at the college level. As a dedicated credit card for students with bad credit or one with no credit, the Student Credit Card allows new cardholders to take small steps towards building their credit history as well as manage expenses. Rightly known as easy credit cards for college students, the eligibility criteria to apply for credit card is quite simple. It requires students to be beyond the age of 18 years and does not involve an income eligibility limit. In addition, the interest rates are low on such cards and they are valid for over five years.

Now that you know about the student friendly credit card, the next thing to focus on is how to choose a student credit card.

Parameters for Choosing a Student Credit Card

If you are wondering what are the best credit cards for students, you need to be aware of the parameters that need to be evaluated before choosing one.

  • Annual Percentage Rate (APR)- The APR signifies the cost of borrowing on the card, in case you are unable to pay the whole balance off each month. So while choosing a student credit card, compare the Annual Percentage Rate of different cards and select the one which is the cheapest.

  • Minimum Repayment- As these are special credit cards for students with no credit, it is vital to check the minimum amount you are required to repay at the end of each month, in case you are unable to pay the entire balance. You might want to go for a card that has low minimum repayment.

  • Annual Fee- Some Student Credit Cards charge a fee annually for using the card. It is added to the due amount on which interest is charged unless the balance is paid in full.

  • Other Charges- Go through the credit agreement to see if any other charges can be applied to the card. Such charges can be levied when you overshoot the credit card limit on your card, use the card in a different country, are late in paying your bills, etc.

  • Cashback- Depending on the money you spend, some Student Credit Cards get the money refunded to your card. Check if you are eligible for such a cashback as it could be only limited to cardholders who can pay the full balance each month.

  • Loyalty points/ rewards- Check if the Student Credit Card has the ability to stockpile rewards that can be later used to buy items. As sometimes these rewards or loyalty points can only be used in particular shops it might also be worthwhile to check and evaluate how likely you are to use them based on your lifestyle.

How to Get a Student Credit Card Online

Apart from applying with the issuer directly by presenting the documents, you can also choose student credit card online and apply for it using any of the three methods-

  • Easy approval student credit cards can be availed against a fixed deposit in your name, which can be used by the issuer as your collateral against your card.

  • A Student Credit Card can be applied against your savings bank account, in which a monthly average balance requires to be maintained, as specified by the bank.

  •  Enjoy the facilities of a Student Credit Card by becoming an add-on member on an existing credit card held by a family member.

Frequently Asked Questions

How do I choose a student credit card?

While choosing a credit card consider the Annual Percentage Rate, minimum repayment required per month, interest rate, rewards and loyalty points, annual fees and other charges levied on the card.

What is the best credit card for a college student?

The best credit cards for students are the ones in which the minimum repayment, Annual Percentage Rate, annual fee, and other charges, are low. Also, the interest charged should be very low or nil. The Student Credit Card should be able to earn cashbacks and rewards too.

Is a Student Credit Card a good idea?

Getting a Student Credit Card is the best credit card for students building credit before graduating. Provided the card is managed well, the score can be used to get regular credit cards for students with good credit as well as for availing credit at competitive terms in the future.

Why are credit cards good for college students?

The Student Credit Card can be used to pay for various purposes such as enrolling for courses online, purchasing books, refuelling your vehicle, etc. It also offers various benefits such as discounts and cashbacks, which can help students save a lot of money. The card is easy for students to use and maintain as it has low joining and annual fees. Also, with a low credit limit on these cards, students do not end up falling into a debt trap by spending recklessly while at college.

Can you use a student credit card after you graduate?

A Student Credit Card is designed to manage the expenses of a student when they are pursuing higher education. However, one can upgrade the Student Credit Card to a feature-packed regular Credit Card at any point of time during the card’s validity.

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