The world of student credit cards

Adhil ShettyBankBazaar.comGetting a credit card was once considered to be a barometer for successful professionals. But today it has become an essential item for everyone. Credit cards that were once offered to the financially strong individuals whom the bank thought would never default is now being increasingly customized for a large section of the population. From travel centric credit cards to co branded credit cards in collaboration with various retail merchants and retail stores, credit cards have today offers users a convenient way to shop. Student credit cards are another customized version of credit cards that have been designed to help students avail various benefits on their spending, apart from cutting out the hassle of carrying paper money. Let us look at the various aspects of student credit cards including their advantages and disadvantages while comparing popular student credit cards in the financial world.The significance of student Credit Cards: Student credit cards are exclusively customized for students and are issued with fewer formalities and lesser paper work. Most student credit cards come with low interest rates, no income based eligibility limit and joining charges. The age criterion is for getting a card is the one should be above 18 years and these cards usually come with five year validity period.Credit Card options for students: • Credit Card against Fixed Deposits: Getting a student credit card is made even simpler in case the student applies for a credit card against a fixed deposit. Students need to open a fixed deposit account with the bank they wish to avail the credit card and the bank will be happy to offer a student credit card with a credit limit as high as 90% of the fixed deposit amount. Interest rate, repayment norms and other terms and conditions to avail student centric credit cards are much simpler as compared to a traditional credit card.• Add On Credit Cards: Another good option for students seeking a credit card is to apply for an add-on credit card over the existing cards of immediate family members. Students can opt to get an add-on credit card held by their parents of working siblings. While the onus of repayment for an add on card lies with the parent card, add-on credit card is issued independently in the name of the student and can be used like any other card.Pros and Cons of Student Credit Cards: Student credit cards offer students a financials security in case of any emergency while allowing them the peace of mind to cover all education related expenses like books. The cash back schemes and reward points offered by credit card companies can help students save on their expenditure while preparing them for repayment management for their future. The downside of student credit cards is that students may sometimes go overboard in their quest for purchasing and unwantedly take a plunge into debt traps causing troubles for themselves and for their guardians, by even affecting their credit rating.Comparison of Popular Student Credit Card Schemes: