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Credit Cards for Students vs First-Time Salaried Users

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Xerxes Bhathena

Table of Content

Credit cards are a valuable financial tool for young Indians stepping into financial independence. However, credit cards for students and those for first-time salaried users serve different needs and come with distinct features. This article compares these two categories to help Indian students and new earners choose the right card with the best benefits and manageable costs.

Credit Usage for Students and First-Time Salaried Users

Credit cards for students are specially designed to introduce young adults to credit responsibly. These cards often come with low or no annual fees, lower credit limits, and simple rewards, helping students build credit history without risking heavy debt. Many banks issue these cards against fixed deposits or as add-ons to parents’ cards, ensuring financial security.

In contrast, credit cards for first-time salaried users cater to young professionals beginning their careers. These cards usually have higher credit limits and more varied rewards. They require proof of income and creditworthiness but offer greater flexibility and benefits tailored to salaried spending patterns.

Key Features Comparison

Both student credit cards and first-time salaried credit cards offer features suited to their target users. Here is how their welcome benefits, fees, eligibility, and offers compare:

Parameter

Credit Cards for Students

Credit Cards for First-Time Salaried Users

Welcome Benefits

Reward points on spends, fee waivers, discounts on essentials

Welcome vouchers, bonus points, cashback on first spends

Annual Charges

Mostly zero or minimal (₹0 to ₹500)

₹500 to ₹1,500, often waived on minimum spends

Eligibility

Age 18+, student status, sometimes FD-backed, no income proof needed

Age 18-30, minimum monthly income ₹15,000-₹25,000, PAN & Aadhaar

Key Offers

Cashback on groceries, fuel surcharge waiver, reward points on essentials

Cashback on dining, shopping, travel; EMI options; fuel waiver

For example, the IDFC FIRST WOW Student Credit Card offers zero annual fees with rewards on spends and 100% cash withdrawal against FD. Meanwhile, the HDFC Freedom Credit Card can be one of the suitable credit card first-time salaried users with welcome vouchers and cashback on various expenses. 

Rewards, Cashback & Points Structure

Rewards and cashback are key to choosing between student credit cards and first-time user cards. Here’s how they compare across spending categories.

Shopping

Student cards usually offer modest reward points or cashback on daily essentials like groceries and stationery. For instance, Kotak Mahindra Bank offers a ctudent credit card against an FD called the 811 #DreamDifferent Credit Card. It offers 500 reward points as activation bonus and 2 reward points for every online spend of ₹100. 

Dining

Dining rewards on student cards are generally limited or absent. First-time user cards often include 5%-10% cashback or accelerated points on dining, helping young professionals dine out while saving. 

Travel

Student credit cards rarely offer travel benefits. First-time salaried cards may provide fuel surcharge waivers, travel insurance, or discounts on ticket bookings. For example, the ICICI Bank Coral Credit Card offers fuel surcharge waivers and travel-related benefits. 

Other Categories

Student cards may offer fuel surcharge waivers and limited reward points, while first-time salaried cards often include EMI conversion options, airport lounge access (basic), and more cashback schemes. 

Disclaimer: The benefits of the respective credit cards mentioned above are added with reference to the information available at the time of writing. For the latest updates, please visit the official website. 

Fees, Charges & Waiver Conditions

Understanding fees and waiver conditions is crucial for young users managing limited budgets. The table below compares six popular cards from both categories.

Card Name

Joining/Annual Fees

Waiver Criteria

Hidden Charges

IDFC FIRST WOW Student Card

₹0

No annual fee

Standard interest, late payment fees

Kotak 811 #DreamDifferent Credit Card

₹0

No annual fee

Fuel surcharge 1%, 3.5% forex markup

ICICI Bank Coral Credit Card

₹500

Waived on ₹1.5 Lakhs annual spend

Forex markup 3.5%, late payment fees

HDFC Freedom First Card

₹500

Waived on ₹50,000 annual spend

Late payment fees, interest on cash advances

Axis Bank MyZone Credit Card

₹499

Waived on ₹1 Lakh annual spends

3.5% forex markup, Fuel surcharge 1%

SBI SimplySAVE Credit Card

₹999

Waived on ₹1 Lakh annual spends

Late payment fees, forex markup

Student cards usually have lower or no fees, with waiver criteria set at modest spends. First-time user cards have moderate fees but offer waivers on reasonable spending thresholds. 

Disclaimer: The benefits of the respective credit cards mentioned above are added with reference to the information available at the time of writing. For the latest updates, please visit the official website.

Card Acceptance, Network & Payment Flexibility

Both categories offer cards on major networks like Visa, Mastercard, and Rupay, with increasing UPI compatibility. 

Visa & Mastercard

Visa and Mastercard cards are widely accepted across India and internationally, ideal for online shopping and travel. Most student and first-time user cards are issued on these networks.

Rupay

Rupay cards are popular for domestic use, often with zero or low fees, and are increasingly UPI-enabled. Some student cards use Rupay to keep costs low.

UPI Compatibility

Many cards now support UPI payments, allowing QR code-based transactions directly from credit cards. This feature is common in both student and first-time salaried cards, adding payment flexibility.

Travel, Lounge Access & Extra Perks

Travel and lifestyle perks are limited in student cards but more available in first-time salaried cards.

Student Cards

  • IDFC FIRST WOW Student Credit Card offers 100% cash withdrawal against FD and up to 4X Reward Points on spends but no lounge access. 

  • ICICI Bank Coral Credit Card for students (FD-secured) provides 2 reward points per ₹100 and one domestic airport lounge access per quarter. 

  • Kotak 811 #DreamDifferent Credit Card offers 500 reward points as activation bonus and 2 reward points for every online spend of ₹100.

First-Time Salaried Cards

  • HDFC Freedom First Credit Card offers fuel surcharge waivers and dining discounts. 

  • Axis MyZone Credit Card includes fuel surcharge waiver and basic travel insurance. 

  • SBI SimplySAVE Credit Card provides cashback on groceries, dining, and travel bookings. 

Lounge access is usually not found on entry-level cards but may be found on some first-time user cards. 

Disclaimer: The benefits of the respective credit cards mentioned above are added with reference to the information available at the time of writing. For the latest updates, please visit the official website.  

Which Card Is Better for Whom

Choosing the right card depends on your profile and financial habits.

Students

Students benefit from credit cards for students with low fees, limited credit limits, and rewards on essentials. These cards help build credit history safely without the risk of overspending.

First-Time Salaried Users

Young professionals may prefer best credit cards for first-time users offering higher credit limits, cashback on dining and shopping, and fuel surcharge waivers. These cards fit salaried users who have steady income and want more rewards.

Online Shoppers

First-time salaried cards with cashback on e-commerce and digital spends suit online shoppers better than student cards.

Budget-Conscious Users

Students or new earners who want to avoid fees and keep spending controlled may prefer student cards or zero-fee first-time user cards like IDFC FIRST or Axis Insta Easy.

Conclusion

Credit cards for students are designed to build credit responsibly with low fees and simple rewards. First-time salaried credit cards offer more benefits and higher limits but require income proof and carry moderate fees. Choose a card based on your financial situation, spending habits, and long-term credit goals to make the most of your first credit experience.

FAQs

Which credit card is best for a salaried employee?

Cards like HDFC Freedom First and Axis Insta Easy are suitable for salaried employees starting their credit journey. They offer cashback, fuel surcharge waivers, and manageable fees.

The best credit card for first-time users is one with low or zero annual fees, reasonable credit limits, and rewards on daily spends, such as the IDFC FIRST WOW or Axis Insta Easy cards.

Student credit cards have lower credit limits, minimal fees, and are often secured against fixed deposits. Regular cards require income proof, have higher limits, and offer more rewards.

Yes, student credit cards are ideal first cards as they help build credit history with low risk and simple rewards suited to student spending patterns.

Cards with no joining fees, easy eligibility, and rewards on essentials are best. These include student credit cards or beginner-friendly first-time user cards from major banks. 

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