Here’s why to choose a student credit card
Student credit cards are specially designed for college-going students who are new to credit. These cards usually have features that a regular credit card would have. But apart from the standard ones, they are also equipped with features that help a student take a step towards financial independence.
The idea behind promoting student credit cards is also to help develop proper spending habits and financial discipline among young individuals. Most companies charge lower interest rates and associated fees on credit cards of this type so that students can start building a positive credit history.
Reasons why you must opt for a student credit card
A credit card dedicated to the use of college-going students is a relatively new concept in India. But, it is on the verge of becoming a popular mode of finance for students with more and more financial institutions extending such facilities online. Individuals can apply for credit cards online in a few simple steps and kick start their financial prospects.
Have a look at the various reasons that make student credit cards an ideal financial tool for students:
- Easy eligibility criteria and simple documentation
Most credit card issuers set simple eligibility credit card criteria so that they can easily avail of this facility, even without prior credit exposure. In some cases, all it requires is an applicant to be a college-going student aged above 18 years.
Along with this advantage, documentation is also less time-consuming in the case of student credit cards since income proof is not necessary. The basic documents required are:
- Birth certificate
- PAN Card
- College or University ID
- Address proof
- Passport-sized photograph
- No end-use restriction
Student credit cards do not involve any usage restriction. Cardholders can use their credit cards to pay their tuition fees, enroll for online courses, purchase books, etc.
- Low annual charges
Student credit cards usually come with zero or minimal joining fees. The interest rate and other charges are also low. Thus, it becomes easy and burden-free to maintain such credit cards.
- Helps promote savings by preventing reckless spending
The credit limit on student credit cards can go up to Rs. 15, 000. This is intentionally set low to prevent rampant spending by students. Plus, the validity of such cards is mostly 5 years. These features prevent students from falling prey to debt traps and help them use a credit card wisely.
- Plenty of rewards and benefits
With numerous cashback, bonuses, rewards, discounts, etc. student credit cards make way for exceptional savings for students. Users get to save a good deal of their money through such perks.
Apart from these, a student credit card allows users to get enough experience on how to manage credit, savings, and spending by the time he/she graduates. Student credit cards can also be upgraded to a premium card with an enhanced credit limit and features once the concerned student starts a career.
Availing credit cards customized for students might not be easy as financial institutions may ask for additional documents. Such cards also come with lower credit limits. As alternatives, you may avail of other feature-rich cards, not custom-made for students only.
The Bajaj Finserv RBL Bank Super Card is one such credit card, which is full of attractive benefits. It comes with impressive security features to prevent monetary fraud. The card also allows interest-free cash withdrawals, easy EMI options, emergency loans, and so on.
Adding on to the benefits of a credit card are the various pre-approved offers, which simplify the application process. These offers are also applicable to personal loans and business loans. You can check your pre-approved card offer now by filling in your first name, surname, and mobile number to view the offers instantly.
Regardless, student credit cards also hold certain risks of getting hacked just like any other credit card. As new users, students might be unaware of this. Thus, apart from selecting a secure card, it is also essential to know the credit card frauds and ways to avoid them.