You are about to take a giant step towards your financial freedom if you have already understood the importance of raising your credit score. Financial institutions have designed special student credit cards to help you achieve this and start early on this path. As the name suggests, these payment cards are tailored for the ones in college or pursuing higher education.
You can apply for this credit instrument online by following a few basic steps. Also, the eligibility parameters are not stringent and ensure a hassle-free experience.
How to Apply for a Student Credit Card?
The application process for this credit card is straightforward. Although there are bound to be slight changes in each step depending on the credit card company you select, roughly these will be the instructions that you will need to follow:
Step 1: Either visit the official web portal of your preferred credit card company or continue after downloading their mobile application
Step 2: Navigate to the ‘credit cards’ section and select the option ‘student credit card’
Step 3: Click on the ‘Apply Now’ button
Step 4: Provide all the information details asked by the credit card company and subsequently attach the scanned copies of the KYC documents
Once you complete the steps mentioned above, the credit card issuer analyses your profile. They approve your card application once they are satisfied with the borrower prospects. Later on, you receive a student credit card in physical form.
What Are the Main Features of Student Credit Cards?
You can read about the typical features of any student credit card in the upcoming section –
Low Credit Limit
Generally, most student credit cards come with a restricted credit limit of around Rs 10,000 to Rs 15,000 a month but check with your credit card provider for more details. This feature helps instil financial discipline at the early stages of exploring budgeting and other aspects of personal finance.
Easy Application Process
You just require being above 18 years old to get a student credit card. Any credit card company will only ask for your essential government-issued ID proof documents as records while applying.
These cards remain valid for up to 5 years from the time they are activated. This term is adequate to cover the entire period of an academic course.
Many banks or NBFCs do not levy any joining fees for new applicants. Even if they stipulate a joining fee or annual charges, those are minimal.
Cashback and Reward Point Systems
When you scroll through the student credit card features of various financial institutions, you will see that they offer certain cashback systems and loyalty programs. Even many of them guarantee discounts on online transactions performed on specific sites.
What Are the Student-specific Benefits That You Can Experience?
Besides the exclusive features mentioned above, certain student credit cards partner with collaborators to help realise complimentary passes for student events. Also, you get discounts on buying products from popular student brands online and offline.
Furthermore, when you explore the credit card app, you come across various other options related to investments and financial strategies. Scrolling through these sections can help you learn how the credit systems work. This helps build your financial stability from scratch and make the most of the available resources.
Finally, you get to access a few credit management tools. These help ensure you maintain a sufficient balance each month to not default on your credit card bill payment. Also, the reward programs triggered by timely repayments help you harvest additional savings each time you buy stationery items, groceries or other essentials.
What Are Some Top Student Credit Cards in 2023?
Here we have mentioned the top 4 choices that you may consider while applying for a student credit card:
ICICI Bank Student Forex Prepaid Card
If you are planning to study abroad, then this credit card can be an ideal addition to ease your payments. It offers complimentary insurance coverage as well. Although it involves a joining fee of Rs 499, you will consider it to be a value for money as the bank guarantees:
- Joining benefits worth Rs 5,000
- 40% discount on extra baggage costs
- Flat 20% discount on all courier services made through DHL
SBI Student Plus Advantage Credit Card
This has topped the list as it guarantees lifetime validity and has no annual or joining charges. Moreover, you get 1 reward point on every Rs 100 expense, which can be later utilised to draw discounts on specific transactions.
Here are some other highlights of this card:
- You get a flat 2.5% fuel surcharge waiver on every petrol bill
- The bank offers a 50-day interest-free period for new cardholders
- The interest rate is only 2.25% per month
Axis Bank Insta Easy Credit Card
Students can apply to any Axis Bank branch for this card against a Fixed Deposit (FD) account by their name. It will be an excellent option for those looking for a high cash withdrawal limit. Besides that, you get a 50-day free credit window along with these benefits:
- Dynamic credit limit of up to 80% of your FD account’s value
- 1% fuel surcharge waiver on each related transaction across India
- 100% cash withdrawal facility of your limit since the first day of activation
Kotak 811 #DreamDifferent Credit Card
Before you apply for this credit card, make sure to have a Kotak FD. This will allow you to enjoy up to a 90% cash withdrawal limit on your FD amount. Also, there will be no need to furnish additional interest for cash withdrawals made till the first 48 days. Other benefits include:
- 2 reward points per Rs 100 worth of online transactions
- 1% fuel surcharge waiver on bills ranging from Rs 500 to Rs 3,000
- No joining or annual charges
Student credit cards do not become a cause of financial burden, particularly as the credit card issuers set considerably low credit limits. Contrarily, these financial instruments help you master some financial education, maintain a stable lifestyle and bag additional discounts on the go. However, ensure sufficient research before choosing a student credit card to get maximum benefits.