Being a millennial and owning a credit card sounds so cool. Isn’t it? Like imagine you can purchase and pay your bill later, that’s such a relief for a person who doesn’t have an income and can still spend without any hesitation.
Today, there are many credit card providers in India for every type of customer. Most of the cards are intended to cater to general purchasing needs whereas few cards are specifically introduced for segments like women, travelers, etc. and one such type is a student credit card.
Now you must be curious to know how it works and what it takes to have a credit card if you’re a student. Well, we have a list of features and benefits of student’s credit card that you can use to make easy purchases.
While, student’s credit card is not widely popular like regular credit cards, it is slowly gaining customers.
Eligibility Criteria: It is issued exclusively to students at college level. Any student more than 18 years of age is qualified for student credit cards.
Interest Rate: These cards have comparatively lower interest rates and there are no income eligibility criteria.
Documents required: These credit cards require lesser documentation as compared to the regular credit card and a simple procedure to procure one. Okay, so talking about documents, if a student is applying for a credit card, the only document required is residence proof, birth certificate, recent passport size photograph, enrollment proof in an educational institute and a PAN card.
Validity: These cards generally have a validity of 5 years as compared to a regular credit card that has 3-year validity period. However, it still depends on the terms and conditions of the issuer organization or bank.
Credit Limit: Now, credit limit is the most important criteria because students don’t have their own income. Normally, the credit limit for students is between Rs. 5,000 to Rs. 15,0000. While the credit limit of a regular card depends on the credit score and income, there is no such variable limit in a student’s card.
Waiver of Fee: These cards often don’t have a joining fee and have very low annual charges making it easier for students to maintain the cards. The interest fee payment period allows students to pay off their dues within a specific timeline failing which they’re not charged any additional interest amount.
Cash limit: The student’s credit card carries a cash limit of up to 10% of the total sanctioned limit.
Card Replacement: In case the card holder misplaces the card or if it gets stolen, the replacement card is provided either without any extra cost or at a very nominal charge.
Offers and Rewards: Now, after all the basic features of this credit card, there comes the loyalty programs and rewards along with cashbacks or cash points when a certain amount is being spent using the card. It also has special offers and discounts on services and purchases worldwide.
Many students go abroad for their higher education. To make life easier for such students, student’s travel cards allow the students to take care of necessary expenditures. The best part of these cards is the worldwide acceptance.
Two most prominent student credit cards available in the market are SBI Student Plus Advantage Card and ICICI bank student travel card. To apply for a student’s card, you can check with the bank about the procedure to apply for the same which might be either online or by visiting a branch, depending upon the bank’s policies.
These student’s credit cards can also be upgraded to a regular credit card. This comes with terms and conditions of a regular credit card.
Student’s credit card is one the best ways to make student’s familiarize with proper credit planning which in turn can earn them positive credit scores. A good credit score can also come handy while applying for different types of loans such as education loan, car loan, home loan etc.
So, being a student is no more like asking your parents or siblings for money. You can simply get on your own feet with a student credit card and make your bills and purchases conveniently.
Tags: credit cards, student credit card