Student Credit Cards – Here’s All You Need to Know

College students are at a crossroads of life – they are newly independents, but not entirely self-sufficient. This means credit doesn’t come easy for them. Banks and financial institutions want loyal borrowers and hence are apprehensive about extending credit to people (read students) who are financially unstable and do not the resources to pay back the borrowed amount.

That’s where the student credit card comes into play. These credit cards are EMI cards for students, designed for college students with no or limited credit history. With smaller credit limits and rewards, student credit cards are a stepping stone to more valuable credit offers in the future. By paying the credit card bill on time and in full, students can build their credit profile that will make getting future loans easier for them.

When can a student get a credit card?

You can get a student credit card in the following situations:

• If your parent has a credit card, you can take an add on credit card to their existing credit limit.
• If you are a part-time student with a steady income source and a savings account, you can get a student credit card.
• If you are a college student of 18 years and above, it makes you eligible for a student credit card.
• You can get a student credit card with a provider with whom you already have an education loan.

Features & Benefits of Student Credit Cards

• Less Documentation: Unlike most other credit cards, students credit cards require a bare minimum of documentation.
• Low Credit Limits: Student credit cards have lower credit limit compared to other credit cards, making it easier for students to manage their credit.
• Fee Waiver: Student credit cards usually do not have a joining fee or have nominal annual charges, making it easier for students to maintain the credit cards.
• Duplicate Card Free Of Cost: If the student credit card is lost, misplaced or stolen, a duplicate card is usually issued for free or at a very low fee.
• Deals and Rewards: Like most other credit cards, the student credit cards come with rewards and loyalty programs that offer discounts on products and services, cashback or cashpoints.
• Card Validity: Student credit cards generally have longer validity, usually for 5 years from the date of issue, as compared to 3 years validity of regular credit cards.
• Flexibility in Usage: A student credit card can be used for various purposes like paying the fees of an online course, refilling fuel, buying books, and more.

Eligibility and Documents Required to Apply for a Student Credit Card

Eligibility

• Above 18 years of age
• Must be a college-going student

Documents Required

• Birth certificate
• Recent passport size photograph
• Proof of residential address
• Identity card issued by the college/university
• PAN card