A student credit card is an exceptional financial tool that can help individuals move into the world of monetary independence. These are tailor-made cards for students to carry out their day to day expenses without worrying about the amount of cash they have in their pocket. Furthermore, credit cards offer a hassle-free and convenient way to make payments and provide additional benefits that ultimately reduces the expenses of a cardholder.
Benefits of a student credit card
1. Minimal associated fees
Usually availing and using a credit card requires the cardholder to pay multiple charges starting from joining fees to annual fees other than interest rates applicable on the unpaid outstanding or on EMIs. However, in the case of a student credit card, there is no joining fee required.
2. Low annual charges
Most of the credit cards have a yearly fee attached to them. In case of a credit card issued for students, this annual charge is very minimal; in some cases, credit card providers do not charge any annual fee on a credit card allotted to students.
3. No charge for duplicate credit cards
In case an individual misplaces his/her credit card, they have to pay a penalty fee to avail a new one. However, in case of a student credit card, there is no such provision. Students can get a duplicate card without any charge; they have to follow the standard procedure of reporting this incident.
4 Minimal documentation
Students can apply for a credit card with minimal documentation. They don’t have to provide any income proof, which makes the application process short.
5. Lowers expenses
Like any regular credit card, these credit cards also generate reward points and benefits with every transaction. They can do multiple things with their credit card reward points, such as availing discounts, cashbacks, etc.
6. Low credit limit to avoid debt traps
These credit cards typically have a credit limit of Rs.15,000, and these are valid for only 5 years. This low credit limit refrain students from spending recklessly and falling into a debt trap.
7. Convenient to use
Instead of recharging their mobile wallets at a regular interval or carrying cash, students can use this card to pay for different expenses. Additionally, it helps them to keep a track on their expenses as the company provides a detailed break-up of every expense in the monthly bill.
1. Build credit score
Availing a credit card like this helps individuals to build their credit history early in life. If they can manage to create a credible credit history, it will help them in future in case they want to avail financing from any financer. Additionally, with a better credit score they can avail the best credit card in India.
Credit cards like the Bajaj Finserv RBL Bank SuperCard are one such product. It offers industry-first features like interest-free (up to 50 days) personal loans and zero-interest (up to 90 days) cash withdrawal from ATMs.
Furthermore, the company also has pre-approved offers on credit cards for their existing customers. It shortens the application process and saves time. These pre-approved offers are also available on other financial products like business loans, home loans, personal loans, etc. You can check your pre-approved offers by submitting your essential contact details like name and phone number.
Student credit cards are of great use as these allow individuals to manage their finances independently. However, applicants have to fulfil the following eligibility criteria to avail this card.
- Must be 18 years or above.
- Must be a college-going student.
Apart from these two primary criteria, a credit card issuer may have other additional conditions that an applicant has to fulfil. Such additional criteria include availing a student loan, submitting collateral, opening a savings account, etc. Students can apply for a credit card online as well as offline.
Documents required for a student credit card
Even though documents required for such credit cards are minimal, students have to submit the following necessary ones to avail it –
- Birth certificate.
- College or university ID.
- PAN card.
- Residential address proof.
Student credit cards are exceptional financial products; it helps students to manage their daily expenses without any difficulty and build their creditworthiness. If used diligently, individuals can get the most out of their credit card and avail its additional benefits.