The internet revolution is all around us. Students are proficient in using the internet today. Students prefer to use credit cards, internet banking, and digital wallets to make online payments. Apart from that, students go to different cities or abroad for their higher studies.
A credit card can be a useful tool to have in those circumstances. Banks currently have special products such as student credit cards. The eligibility criteria for such student credit cards are basic.
Let’s take a look at things you should know before getting your student credit card.
Eligibility Criteria for student credit cards
Generally, banks have strict income norms for approving credit cards. They also look at aspects such as the credit history of the applicant. Now, a student who applies for a credit card will have no income or credit history. Hence, this student card is unique in that it is available to the student community without having to provide proof of income or credit rating. Following are the specific eligibility criteria that students must meet.
- Students must be at least 18 years old.
- Student credit cards are not available for school students. Therefore, it is very important for them to study in colleges or universities.
Students have no income. Therefore, banks do not agree on high limits. However, students can join as applicants together with their parents and get additional cards. Under such circumstances, the parents’ income and credit rating are very important.
Required documents
Students must prepare the following documents before applying for a credit card.
- Proof of Identity – It can be an Aadhar card, SIM or PAN card
- Address proof – Aadhar card is an ideal address proof document.
- college ID card – This document proves the status of the student.
Student Credit Card Features
Student credit cards are different from regular credit cards in many ways. Typically, such cards have no application or renewal fees.
- Student credit cards have low limits. Usually, banks do not agree to limits of more than Rs 15 to 20K. This ensures that students do not spend carelessly.
- Student cards are valid for five years.
- Student cards are usually available free of charge. They have no renewal fees.
Advantages of student credit cards
- Using a credit card has become more of a necessity nowadays than a luxury. Independent credit cards allow students to order their needs online and pay for them using the card.
- Student credit cards come with attractive benefits such as cashback offers, restaurant discounts, free cinema tickets, and so on. These perquisites help to reduce the overall burden on students.
- Students can use this credit card to pay for their travel bills such as taxi fees, train tickets, and so on.
- They can also purchase books and other educational materials using a student credit card.
- Student credit cards help students build a credit history. This proves to be useful when they apply for a loan in the future.
- Student credit cards help students to develop fiscal discipline. When students pay their bills on time, they develop a habit of paying back. It makes them good benefits in the future.
Points to note
- Student credit cards help students develop a good credit history. They must record to pay the credit card bill in full each month before the due date. Any delay in payment may result in a late fee. Failure to pay will result in interest being charged.
- Credit rating is an important concept. Students should understand its importance and make sure to pay credit card bills on time.
- Students must use credit cards wisely. They shouldn’t use it to inflict unnecessary expenses.
- Students should avoid using the ‘Cash Advance’ facility available on credit cards. These features are useful, but are not recommended for use. You get instant cash to use, but it’s expensive. This amount attracts interest @ APR from the date of withdrawal to the time of payment. In addition, this facility requires you to pay a Cash Withdrawal Fee.
- Students are proficient in using the internet. However, they should be aware of credit card fraud. They should understand aspects like credit card cloning and know the repercussions. Students should refrain from sharing their card details, especially expiration date, CVV number and PIN with others. Including fellow students as well. Students should be careful when dealing with credit cards on the internet. They should be aware of phishing and other fraudulent activities that can lead to the intrusion of personal data.
Final thoughts
Students must understand various aspects of credit cards before using them. When you have facilities, use them wisely. Impulsive and reckless use of student credit cards can land you in heavy debt.
Thus, one can define a credit card as a good friend but an evil enemy. To find out more about the benefits of your credit card, you can Click here.
