Nowadays, many students live far away from home for studies, and they need to manage their daily expenses. It can be in stay expenses, book and stationery expenses, commuting expenses, etc. They often do not have funds in accounts or e-wallets, which is challenging for the student community. To help students, banks offer student credit cards.
Credit card for students function like standard credit cards. Generally, they are unsecured. The main point differentiating student credit cards and standard credit cards are the eligibility criteria and benefits. Student credit cards are issued explicitly on student IDs for those attending college. These are the cards to meet the financial needs of college students. The attractive features are an interest-free period, rewards, and discounts. College students can get student credit cards without any income document. An individual without a credit history can easily qualify for one. Whether you are a student of a part-time course or full-time, you can get a student credit card quickly.
Got through the following signs and benefits that show the credit card for students revolution is coming:
- Technological advancements: With technological advancements, most students prefer online transactions. It can be through e-wallets, accounts, or cards.
- Easier to get a student credit card: You can get a secured student credit card without a credit history. A security deposit makes a credit card easier to get.
- Low rates and fees: Student card cards do not have huge interest rates or penalty fees. Generally, there is 0% APR. And, if you pay your bill in full every month, you need not worry about a dime of interest.
- Convenient Grace Period: Student credit cards also have a grace period. Interest won’t start accruing until the next due date in a new month. If you pay the next month’s bill in full, interest won’t accrue again.
- No annual fee: You can find excellent student cards that don’t charge annual fees. Generally, banks do not levy any charge as joining fee for student credit cards in India.
- Easy way to build credit history: Students can easily get cards that help a beginner build a credit history and open a path for further financing options.
- Learn good credit habits: One of the primary reasons to utilise a student credit card is to learn good credit habits. A restricted credit limit can prevent overspending on unnecessary items. It can be a great start for students to learn money and monthly budget management.
- Easy replacement: Student credit card replacement is relatively easy. If you lose it or it is damaged, report it to the card issuer. It will block the card and issue the new one immediately.
- Gain everyday convenience: A student card can be used on anything from groceries to college supplies. It is really convenient when a student is short on cash.
- Receive cardholder perks: When you use a credit card, you get promotional perks, the opportunity to earn cash back, and there can be other benefits also on ticket booking, etc. Some credit card companies offer benefits that are especially appealing to college students for scholarships.
- Have a sense of security: Carrying large amounts in cash is not always safe for students. There is a risk of theft without a chance of recovery. In contrast, a credit card allows students to stay protected. You won’t be liable for any unauthorised purchases you didn’t make.
For easy and convenient transactions, financial institutions are targeting the student community. This way, Student credit cards are settling ground in India also. Students without credit history can also take these cards.
For a credit card balance check, you can go to any of these options:
- Net banking
- SMS alerts
- Customer service
- Through ATM
- By visiting the issuer’s branch
- Monthly account statements
- Mobile Application
Know about the eligibility criteria, easy documentation and specific features of the student credit cards.
Eligibility Criteria for Student Credit Card
- The applicant must be a student of a university.
- Students should be 18+ years.
- Certain financial institutions may ask students or their guardians to open a fixed deposit as security to issue a student credit card.
- Some banks may ask to maintain a savings account with the fixed minimum balance to qualify for a credit card.
- Some banks provide student credit cards to their customers who have availed of an education loan with them.
- A family member using a credit card can apply for an add-on in the student’s name. However, in this case, the Add-On Card will be issued within the entire limit of the primary credit card.
- Birth certificate
- College ID card
- Address Proof
- Recent passport size photograph
- PAN card
Thus, credit cards are the featured products nowadays, ready for a revolution in the finance industry. Make necessary purchases quickly and make payments from your pocket later. Students who find themselves short on cash need not worry anymore.