A student credit card is a perfect financial tool for college or university students with lower credit limits. As students embark on their educational journey, it becomes essential for them to manage their finances effectively. The student credit card offers a variety of benefits, including rewards, discounts, and fraud protection features.
Students can develop good financial habits and prepare for their future financial journey by using a student credit card wisely. In this article, you will learn about the types of Student Credit Cards, their features and benefits, eligibility requirements, the documentation process, and the step-by-step application procedure in detail.
Student Credit Card: An asset for students
A student credit card is a financial tool designed for college or university students, offering them convenient payment options and the opportunity to build their credit history. Moreover, a student credit card offers financial freedom, the opportunity to build credit, attractive rewards, and a chance to learn valuable financial skills. It is a valuable asset for students who want to navigate their financial journey.
Student Credit Cards: Different types
Presently, there are various types of Student Credit Cards, including rewards credit cards that offer points for purchases, cashback credit cards that give a percentage of the spent amount as cashback and exclusive discounts and offers on student-centric categories such as textbooks, stationery, and online subscriptions. The travel credit cards offer benefits like flight discounts, co-branded credit cards in collaboration with educational institutions, secured credit cards for students with limited credit history, and services provided by Engineering staffing agencies. Credit cards may even offer rewards for maintaining a good academic record. Choosing the right student credit card offers you financial flexibility and rewards you while promoting responsible money management habits.
Student Credit Cards: Features and Benefits
- Building a good Credit History: The primary advantage of a student credit card is to build a credit history. You can build a good credit score with regular payments and responsible credit management which will help you when you apply for loans or other credit products.
- Financial Management: Student credit cards promote responsible spending and financial management. You can learn how to manage your expenses within a predetermined budget, avoiding unnecessary debt by setting a credit limit.
- Rewards and Discounts: Student Credit Cards offer attractive rewards and discounts designed according to student needs. These benefits may include cashback on purchases, exclusive discounts on popular brands, or also provide reward points to redeem on various items and services.
- Security and Fraud Protection: Student Credit Cards provide strong security features that protect you from fraudulent activities. This provides you peace of mind when you use your cards for online transactions or at unfamiliar places.
- A boom in Emergency: In case of emergencies or unexpected circumstances, the student credit card is a convenient option to access funds when needed with a sense of security.
Student Credit Card: Eligibility Requirements
You must fulfil a few eligibility requirements for a student credit card. The eligibility criteria are mentioned below:
- You must attain the age of 18 years.
- You must be an Indian resident.
- You must be a student at a recognised college or university.
- While some banks may ask for a minimum income, this requirement is often relaxed for student credit cards.
By fulfilling these eligibility requirements, you can avail the advantages of a student credit card that helps you to establish a good credit history for your future endeavours.
Student Credit Card: Documentation Process
The documentation process for a student credit card may differ depending on the bank and its policies. It usually involves the following:
- Identity Proof: Documents proving your identity, such as an Aadhaar card, PAN card, or passport.
- Address Proof: Documents showing the current residential address, like an Aadhaar card, utility bills, or rental agreement.
- Age Proof: Birth certificate, school/college leaving certificate, or passport indicating the date of birth.
- College/University Enrollment Proof: Valid proof of enrollment, such as a college ID card or admission letter.
- Income Proof: It may vary, but some banks may require income-related documents such as bank statements or proof of part-time employment.
- Photographs: Two passport-size photographs.
Student Credit Card: Step-wise Application Process (Offline and Online):
Depending on banks, the application process for a Student Credit Card may differ. You will learn the application procedure for a Student Credit Card step by step in the following section:
1. Offline Application Process:
a. Visit the nearest Bank branch of your choice and approach a bank representative.
b. Request the application form for a student credit card.
c. Fill out the application form accurately and attach all the required documents.
d. Submit the completed form and documents to the bank representative.
e. The Bank will process the application and notify you regarding the Credit Card Application Status.
2. Online Application Process:
a. Go to the official website of a bank of your choice.
b. Go to the student credit card section.
c. After checking the details of credit cards available on the website, you should select the credit card you want to avail.
d. Click the “Apply Now” tab.
e. Fill out the online application form with accurate personal and contact information.
f. Upload the necessary documents as per the instructions provided.
g. Review the application details before submitting the form.
h. The Bank will review the application and communicate the decision on Credit Card Application Status via email or phone.
The student credit card provides an excellent opportunity to learn and practice financial responsibility for students.
Many banks, including ICICI Bank, offer reliable options for Student Credit Cards, empowering you to take control of your finances and embark on a journey towards a secure financial future.