If you are a student and currently unemployed with no credit history, getting a credit card might be challenging.
However, there are two main ways to obtain one:
Add-On Card: You can get an add-on card linked to your parents’ credit card.
Fixed Deposit Card: You can apply for a credit card secured against a fixed deposit (FD) account.
Benefits of Student Credit Cards
Student credit cards offer several advantages:
Build Credit History: They help you create a good credit score, which is important for obtaining loans in the future.
Earn Rewards: Most student credit cards allow you to earn reward points on purchases, which can be redeemed for cash, vouchers, or air miles.
Emergency Backup: These cards provide financial support in case of emergencies.
Student credit cards come in two forms:
Supplementary Card: This card is issued to the child by the parent’s primary credit card. It shares most of the benefits without any joining or annual fees. It is a helpful financial tool for students managing their own expenses.
Fixed Deposit Card: This option requires you to secure the credit card with a fixed deposit.
IDFC First Bank Wow Credit Card
IDFC First Bank offers credit cards backed by fixed deposits without needing a credit history or income proof.
You must be at least 18 years old to apply. Features include:
- No forex conversion charges
- 4X reward points on spending
- ATM cash withdrawal limit of 100% of the FD value
ICICI Bank Student Credit Card
ICICI Bank provides a student credit card option against a fixed deposit guarantee and also offers an add-on card.
The minimum FD value is ₹50,000. Typically, there are no joining or annual fees associated with these cards.
Axis Bank Student Credit Card
Axis Bank offers credit cards for students without needing income proof.
The documentation required is simpler compared to standard credit cards.
Kotak Mahindra Student Credit Card
Kotak Mahindra offers student credit cards with zero annual fees, interest-free cash withdrawals, and 2X rewards.
Known as the 811 #DreamDifferent Credit Card, it can be obtained through a fixed deposit at Kotak Bank and has no annual fee.
