Importance of Student Credit Cards in India

The increasing ticket-size of educational loans by about 47% in 2018 alone is a reflection that more and more students are opting for courses from reputed institutes in India and abroad. 

However, it may not be a positive indicator as the growing cost of the same becomes a hurdle for a majority of students. This calls for the need to avail financial assistance. 

While advances provide one with convenient access to a considerable sum, with student credit cards, one also grows into a balanced financial habit that would prevent them from overspending. 

What is the importance of a student credit card?

These credit cards are tailor-made to suit the financial requirements of college students and offer efficient assistance to meet expenses conveniently. Considering that acquiring this variant of credit card requires nominal documentation, this is a favoured option for many. 

Keeping in mind the convenience of potential student applicants and the absence of their income proof, most financial institutions offer student with two types of cards – secured and add-on. It ensures the ease of availability of cards sans a long list of eligibility criteria.  

Add on to this the list of multiple benefits of student credit cards –

1. Serves as an efficient financial tool to help strengthen credit score

Healthy credit scores are a requisite for those planning to avail advances in the future to sponsor their pursuit of higher education, paying for accommodation, tuition charges, etc. 

On the other hand, in the case of students, CIBIL scores are often either poor or absent, considering that they may not possess a credit history at all. 

With student payment cards, there are increased chances of building up a financial relationship with a chosen lender. 

2. Acts as a preferred payment card for emergencies

In cases of students pursuing their higher education in places away from home, the use of credit cards is diverse. It includes instances of emergencies – medical and otherwise. The availability of credit cards makes it a convenient option to avail the required sum. 

In reference to this, a lot also depends on the chosen card. In case individuals opt for the Bajaj Finserv RBL Bank World Plus SuperCard, they can enjoy the benefits of possessing 4-card-in-1 features comprising of – cash card, loan card, EMI card, and credit card. Cardholders can thus go for an emergency loan or ATM withdrawals with an add-on benefit of an interest-free period of 90 and 50 days respectively.

Additionally, this reputed financial lender also offers its existing borrowers with pre-approved offers on numerous financial products, viz. home loans, personal advances, etc. These offers ease the application process to avail financial assistance and help save time. You can take a look at your pre-approved offer by providing a few essential details. 

3. Brings in the convenience of shopping online

Considering that students make a suitable choice of credit cards, they can enjoy the added benefits of reward points from certain online transactions based on the chosen variant. Financial institutions, in an offered leverage to its clients, providing them with reward points and welcome gifts. Such points can also be earned during shopping with the use of credit cards and redeemed against discounts, cashback, etc. 

4. Offers an in-depth understanding of the importance of good financial habits

Credit cards bring with it the requirement to –

• • Pay bills on time
  • Use a credit card wisely to earn maximum benefits
  • Redeem bonus points 

Developing such financial habits prepares a student for future lending and ensures that they have a holistic idea of checking the credit card statement correctly. Getting acquainted with the financial terms and conditions ensures that they grow into ideal borrowers and hence gain additional advantages of the lowered rate of interest, quicker sanction of credit amount, etc.

With an increasing inclination towards pursuing higher studies and the growing expenditures, the rapidly rising demand for student credit cards is an expected move owing to its plethora of benefits and importance.