Credit card

[Cyrus]

Hello everyone
I am a student and on this December i will turn 21 so i am planning to take my first credit card.
Can you guys suggest me how to proceed further

 

[ChinmayG]

I can suggest credit card based on your expense for present and your future spend category, but I don't know that so suggesting this...
Please share your thoughts for custom suggestions.

Recommended First Credit Cards for Students

1. SBI Student Plus Advantage Card
   • Features:
     • No annual fee for students with an SBI education loan.
     • 1% fuel surcharge waiver.
     • Earn reward points on every spend, redeemable for gifts or statement credit.
     • EMI conversion for larger transactions.
   • Eligibility:
     • Students with a fixed deposit at SBI or a co-signer (e.g., parents) may be eligible.
2. HDFC MoneyBack Card (for Beginners)
   • Features:
     • Cashback on online and offline purchases.
     • Low annual fee (waived on spending a certain amount).
     • Simple rewards program, ideal for new credit users.
   • Eligibility:
     • Some banks require proof of income or co-applicant if applying as a student.
3. ICICI Coral Credit Card Against Fixed Deposit
   • Features:
     • Secured credit card issued against a fixed deposit.
     • No income proof required.
     • Good reward points on everyday spends like groceries and fuel.
   • Eligibility:
     • Minimum FD requirement, usually around ₹10,000.
4. Axis Bank Insta Easy Credit Card (Secured)
   • Features:
     • Credit card against a fixed deposit.
     • No credit history required.
     • Good cashback offers and low annual fee.
   • Eligibility:
     • Fixed deposit account with Axis Bank.
5. Kotak 811 #DreamDifferent Credit Card
   • Features:
     • Zero annual fee.
     • Instant issuance with a savings account.
     • 2% rewards on online spends and 1% on others.
   • Eligibility:
     • Requires a Kotak savings account; ideal for tech-savvy students.

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How to Apply for a Credit Card as a Student​

1. Choose the Right Card:
   • Decide if you want a secured credit card (against FD) or an unsecured student card.
   • Compare benefits, fees, and rewards.
2. Check Eligibility:
   • Age: Minimum 18 (some banks require co-signers if income proof is unavailable).
   • Documents:
     • ID proof (Aadhaar, Passport, PAN).
     • Address proof.
     • Student proof (college ID or admission letter).
     • Fixed deposit receipt (for secured cards).
3. Apply Online or Offline:
   • Visit the bank’s website or branch.
   • Fill out the application form and upload documents (for online applications).
   • Inquire about card issuance timelines.
4. Approval Process:
   • For secured cards: Approval is quicker as they are backed by FDs.
   • For unsecured cards: May require verification of co-applicant’s creditworthiness.

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What to Look for in a Student Credit Card​

1. Low Fees and Charges:
   • Opt for cards with low or waived annual fees, especially if you’re new to credit.
2. Build Credit History:
   • Check if the card reports to credit bureaus like CIBIL and Experian. A good credit score is crucial for future loans or premium cards.
3. Rewards and Benefits:
   • Cashback, discounts, or reward points on student-friendly categories (food delivery, online shopping, fuel, etc.).
4. Credit Limit:
   • Choose a card with a manageable credit limit, so you don’t overspend.
5. Eligibility and Accessibility:
   • Prefer cards tailored for students with simple eligibility criteria.
6. EMI Facility:
   • Useful for converting large expenses (e.g., gadgets or travel) into manageable monthly payments.
7. Customer Service:
   • Ensure the bank has robust customer support for easy issue resolution.

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Pro Tips​

• Always pay your credit card bills on time to avoid interest and maintain a good credit score.
• Keep your credit utilization below 30% of the card limit.
• Use the card responsibly for needs, not luxuries.