How to Apply for a Student Credit Card Online?

Getting a credit card can be a first step for students aiming for financial independence. A student credit card can assist in establishing a credit history, managing finances, and even earning rewards for purchases. Dive into this guide to understand how to apply for a student credit card online.

Understanding Student Credit Cards

Student credit cards are designed for young adults with limited or no credit history. They offer lower credit limits and fewer rewards but help build credit. Often featuring minimal fees, these cards are a practical way for students to learn financial responsibility and establish a solid credit foundation.

Finance Options After Obtaining Student Credit Cards

A student credit card loan can provide the flexibility required during your academic journey. It enables students to handle their expenses without depending on their parents or guardians. This financial independence plays a role in growth and responsibility.

Benefits of Credit Card Loans

Credit card loan comes with several advantages, such as:

•  Easy Access to Funds: You can conveniently access funds for emergencies or major educational purchases.

•  Flexible Repayment Options: Select repayment terms that align with your financial situation.

•  Competitive Interest Rates: Student credit card loan often come with lower interest rates, making them cost-effective.

Types of Student Credit Cards 

There are two types of student credit cards that you can consider:

1. Add on Credit Card: This card type is linked to the cardholder's account, a parent or guardian. It shares the card's benefits and doesn't include additional joining fees or annual charges. This option allows parents to offer their children flexibility while monitoring their spending habits.

2. Credit Card Against Fixed Deposit (FD): This kind of card is secured against a fixed deposit account. The credit limit usually depends on a percentage of the FD amount, making it more accessible for students without an established credit history. This option works well for students who have some savings and want to leverage them to establish a credit line.

Eligibility for Student Credit Cards

Before applying for a student credit card, it's important to check and meet the eligibility criteria:

Age Criteria

Applicants must be at least 18 years old to qualify for a student credit card. This ensures that they are legally capable of handling their finances.

Citizenship Status

Applicants must be Indian citizens, ensuring that the cardholder has a legal and financial status in the country.

Fixed Deposit Criteria

Credit cards linked to fixed deposits usually require a deposit amount. The initial amount required can differ depending on the bank, but it usually starts at ₹50,000. This stipulation safeguards the bank's interests while granting a credit line to the student.

Necessary Documentation

Preparing all the required documents in advance can expedite the application process. Here is a list of what you will need:

• Aadhaar Card and PAN Card: These are essential for verifying your identity and address.

• Passport size Photograph: A recent photograph is needed for the application form.

• Proof of Enrollment: Documentation from your educational institution confirming your student status.

• Income Proof or Guarantor Information: Additional documentation might be necessary to demonstrate stability or provide details about a guarantor. This ensures that the applicant or their guardian can cover any debts accrued on the card.

Applying for a Student Credit Card Online

Applying online is a simple process. Follow these steps to apply for a student credit card:

For Add-On Credit Cards

• Visit the Bank’s official Website: Go to the credit card section on the bank’s website.

• Download the Application Form: Find and download the form for credit cards.

• Fill out the form: Fill in all the required details on the application form.

• Submit Documents: Attach self-attested photocopies of both PAN cards and address proof of the additional card applicant.

• Verification: If needed, have the documents in hand for verification. This step is important to ensure that all the information provided is correct and that the applicant qualifies for the card.

For Credit Cards Secured Against Fixed Deposits

• Confirm FD Account: Ensure you hold an FD account with the bank meeting the amount and duration criteria.

• Visit a Bank Branch or Apply Online: You can visit a branch in person. Apply online using Net Banking or the mobile app. This flexibility allows applicants to choose their method of application.

Advantages of Student Credit Cards

Student credit cards offer benefits that make them a valuable financial tool for students in the following ways:

Establishing Credit History

Starting to build a credit history early is crucial for future financial endeavours. Using a student credit card responsibly helps establish a credit score, which is important for obtaining loans and favourable financial terms.

Earning Reward Points

Many student credit cards provide reward points for purchases made. These points can be redeemed for cash, vouchers or even air miles making everyday spending more rewarding.

Emergency Financial Support

Having a credit card can serve as a financial safety net during emergencies for students studying abroad. It offers a cushion for expenses.

Managing Your Student Credit Card

Once you've got your hands on a student credit card, it's crucial to handle it. Here are some handy tips:

• Paying Bills On time: Make sure to settle your credit card bills on time to steer clear of interest charges and penalties. Timely payments can also have an impact on your credit score.

• Keeping an Eye on Your Spending: Stay vigilant about monitoring your expenses to avoid overspending and getting into debt. Creating a budget can help you maintain health.

• Utilizing Rewards Wisely: Make the most of reward points and cashback offers to maximise the benefits of your credit card. This can boost your savings on purchases.

Student Credit Card Charges and Limits

Student credit cards typically don't come with annual fees, making them budget-friendly. Credit limits are determined based on factors like income or the card's fixed deposit (FD) amount. 

Conclusion

Getting a student credit card online marks a significant step towards financial independence. It offers flexibility during your journey. Be sure to research and select the option that best fits your requirements. With management and a strategic approach, a student credit card can serve as a powerful tool for managing your finances effectively. 

Knowing the types of cards available, eligibility criteria, documents required, and application process can help you navigate this process easily. By handling your student credit card carefully, you can establish a credit record and a range of financial advantages.