Every year, more students travel abroad to pursue higher education. It has given rise to the need for some kind of financial stability for the students as they lack a steady source of income. Therefore, few financial institutions have introduced student credit cards for those students.
These credit cards have smaller credit limit compared to regular credit cards. The maximum amount provided on such a credit card is Rs. 15000. However, they have no joining fee and also minimal annual charges making them an ideal credit product for students to avail.
The validity period on these credit cards is also longer than regular credit cards; the longest being 5 years. Also, as the main customer base for these cards is the students studying abroad; therefore, these cards have international legitimacy.
Another advantage student credit cards have over regular cards is that minimum documentation is required to avail one.
When students start using a credit card from a young age, they develop a good score early on. Also, it becomes convenient for the students to meet their daily as well as other education-related expenditures.
The lending institutions even breaks down the expenses for the students, so that they can better monitor their expenses. This feature makes the students more responsible for their financial dispositions, and they tend to spend more wisely.
Also, in case a student spends a hefty amount at once and cannot repay the same within the due date, they can convert it into an EMI. If students make payments using student credit cards at the beginning of a billing period, they can avail of a longer window to repay, thereby ensuring they make timely repayments.
Advantage of student credit card
If you are using the best credit card in India then you can get the following advantage like;
Shop for your favorite consumer durable or appliances or other products from online or offline stores to earn lots of rewards. These rewards will be used for the next shopping.
Zero Fraud Liability Guarantee:
With the best credit card, you will less and very less chance of fraud i.e zero fraud.
This credit card help students to be financially independent and also manage money.
Using this credit card, you can enjoy your shopping easily from all the online and offline stores.
What is good about student credit cards?
Best of all, one can earn valuable rewards with these credit cards. With this card, all your cashback gets accumulated in the first year, which can be redeemed in the year later.
You can also receive rebates and reward points under categories like fuel surcharge waiver; dine out vouchers, shopping coupons on e-commerce sites, etc.
A student credit card might not provide you with best-in-class features like complimentary airport lounge access, air miles, etc. Plus, these customized credit cards do not have annual fees, making it an ideal option for young individuals who do not possess a substantial income source.
Financial institutions set the credit limit and interest rates based on the borrower’s creditworthiness and perceived risk. Applicants with poor CIBIL scores are inherently riskier, so they are charged a higher interest by the card issuers.