Here’s everything you need to know about student credit cards
New Delhi: With the internet becoming a very important part of the student’s life, a lot of students prefer digital wallets, credit cards and digital transactions over cash. If you are a student studying away from home then managing your money and expenses at the same time can be tricky. Though a lot of people do use online payments frequently but even adding money to the online wallets is a hassle sometimes. Nowadays, most banks and credit card companies offer student credit cards. There is a proper eligibility criteria which students have to clear to be able to get a student credit card.
It is a lot easy and stress-free to carry a credit card around than cash because in case it is stolen it can be easily blocked. Here’s everything you need to know about student credit cards
Eligibility Criteria – Before you apply for a student credit card make sure that you fulfill the following eligibility criteria.
1. Age – You must be 18 or above to apply for a student’s credit card.
2. College Student: This credit card is not for school students. Only college going students are eligible to apply for it and you will need proof like College ID when you apply for the card.
3. Education Loan: Some banks only provide students credit cards to those students who are education loan customers of that bank. This just to ensure that the student has some credit history. However, this is not a criteria for all banks.
4. Fixed Deposit: If a student has a fixed deposit in his/her name then they can apply for a student credit card against that fixed deposit. However, make sure to inquire about the minimum fixed deposit limit set by the bank.
5. Add-on Credit Card: If a member of your family already has a credit card then, they can apply for an add-on card in the student’s name. But the credit limit in the add-on credit card will be part of the overall limit of the primary card.
6. Savings Account: Some banks offer student credit card if the student operates a savings bank account in the particular bank with good monthly average balance.
Documents Required: As it is a student’s credit, only bare minimum documents are required to apply for the card. All you need is:
a. Birth certificate
b. Identity card issued by the college/university
c. Proof of residential address
d. Recent passport size photograph
e. PAN card
Students Credit Card Features: A student credit is very different from the general credit card. It has a lower credit limit. The application is fee is very less and in case the card is lost then the cost of reapplication is also very less.
Credit Limit – Since it is a student credit card the credit limit is restricted to Rs 15,000 to ensure that the student won’t spend recklessly.
Also Read: Seven things to remember before you take an education loan
Validity – While the general credit card has 3-year validity, students credit card, on the other hand, is valid for 5 years.
Fee – Unlike other credit cards, student credit cards often do not have a joining fee and also have very less annual charges, which makes it relatively easy for the students to not just get the credit card but also to maintain them.
Almost zero charge for the duplicate card – In a student’s credit card is lost or stolen, a student can get a duplicate card almost free of cost which is a huge plus.
Benefits of student credit card: A student credit card offers a lot of benefits like:
1. A student credit card does not require any type of income proof. It also needs minimal documents.
2. Students credit card often comes with a variety of cashback, discount and other offers which can help lower their expenses a little. There are also reward points which the students can redeem after a certain point or limit.
3. If a student gets a credit card and learns how to maintain it then, it can teach him early on how to manage positive credit score by spending properly.
4. Students travel to college or coaching using their vehicles. When you pay for petrol or diesel through a debit card or other credit card then you have to pay an additional surcharge but with a student credit card, you can save that money as no fuel surcharge has to be paid.
5. A student can use that card to even pay his fee and for buying books. They can even use this card to pay for any additional online course that they want to enrol in.