Credit cards have become the talk of the town and every second person owns them. With the increasing need for credit cards by every age group, credit card issuers decided to cover all the groups. Now students can also a credit card and use it as and when required. In, this blog we have covered how students with no credit history can avail of credit cards.
Which type of credit card can students avail themselves of?
Since students have no credit scores and a stable source of income, credit card issuers still provide credit cards to them. There are three types of credit cards that students with no credit history can avail of:
Lifetime free credit card: As the name suggests, these types of credit cards come with no joining and renewal fee. Those who have no credit history can easily avail of this credit card. Lifetime free credit cards are ideal for the students as they allow help them to earn rewards and other benefits.
Secured Credit card: Another type of credit card that a student can avail of is the secured credit card. A secured credit card is offered against a fixed deposit, if there is a fixed deposit in a student’s name then they can avail of the credit card. If you fail to pay the credit card dues then the amount will be deducted from the fixed deposit.
Add-On credit card: In case your application is not getting approved for a lifetime credit card or for a secured credit card then you can apply for an Add-on credit card. This one is easier to get. If anyone in your immediate family has a credit card then they can apply for an add-on credit card for you. You will get to enjoy the same features and benefits that a primary credit cardholder gets. However, some credit card issuers limit the features and benefits of the add-on credit cards.
What are the eligibility criteria/documents required?
Students need to fulfill certain eligibility criteria or the documents required to get a credit card. They are:
- You need to be above the age of 18 years to get an add-on credit card but for the other two that is lifetime free credit card and secured credit card, you need to be above the age of 21 years.
- You need to submit the proof of your college where you are enrolled.
- You need to submit your address and id proof as well.
Things to remember while using a credit card:
Being a student it is quite possible that you can get careless with your credit card. Make sure that you use your credit card only when it is required. You need to keep the credit card dues clear so that you can keep on enjoying the benefits of your credit card. You can request to set a threshold limit on your credit card so that you do not overspend.
To conclude, these days students can also take credit cards to meet their needs. However, you need to be very cautious while using a credit card as you can easily land up in an unfavorable situation. SBI especially for students came up with the SBI Student Plus Advantage credit card that a student can avail of. However, to get familiar with the credit card working you should begin your credit journey with an add-on credit card or secured credit card, or a lifetime free credit card.
Do share your information on the credit cards for students in the comment section.