Best Credit Cards for Students

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Generation Z is all in on learning new ways of managing personal finance, and credit cards are a must have for them if used the right way. In the growing Indian economy, awareness about credit cards and their use is gaining pace. If used properly, credit cards are considered the safest payment options in terms of benefits they provide even after your purchase is complete. While applying for a card, credit card companies require a lot of documentation, your credit score, and more. Read on as this blog will cover all the best credit cards for students in detail.

List of 6 Best Student Credit Cards For 2022

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1. SBI Student Plus Advantage Card

Points to Consider
  1. This credit card for students provides an all-around reward system.
  2. Acts as a ready cash method as around 80% of the credit limit can be withdrawn by users.
  3. Best suited for students who are existing customers of SBI Education loans.
Joining fees:0
Annual fees: 0 (applicable on annual spends of over Rs 35,000)
Interest rate: Up to 2.25% per month (27% per annum)
pros
  • Accelerated Cash Points (10 on every ₹ 100 spent) are earned when used in departmental stores.
  • 80% cash withdrawal limit
  • Option of converting transactions into EMI using Flexipay
  • 10X Cash Points for spending abroad
  • 2.5% fuel surcharge waiver across pumps
  • Cash Points earned can even be used to pay balance amount
Cons
  • No Cash Points on Fuel and EMI transactions
  • Absence of any travel benefits

Eligibility Criteria

  • Approved if you have availed an education loan from State Bank of India
  • Age at the time of application should be 18 years. If under 18, you will be given an add-on card while either of your parents will be the primary holder.

Why We Picked This Card?

Good option for college students who want access to a solid prepaid card as well as a tool to build credit score as they go. Also, a great card if you are looking for the best credit cards for beginners.

2. ICICI Bank Student Forex Prepaid Card

Points to Consider
  1. A must have credit and forex card for students studying abroad.
  2. Students do not have to track the exchange rates whenever paying in foreign currency as they can preload a certain amount of foreign currency.
  3. Card protection insurance worth ₹1600 and International Student Identity Card (ISIC) worth ₹590.
Joining fees:Rs 499. Will be debited from equivalent currency loaded in the card at the time of card activation.
Annual fees: Rs 199
Interest rate: N/A. Instead, wallet transfer fees are at 2.5%
pros
  • 40% instant discount on extra luggage
  • 20% off on courier services through DHL
Cons
  • Recurring annual fees with no waiver
  • Not quite useful for students studying in India.

Eligibility Criteria

  • No specific eligibility criteria. Applicable as per existing bank norms.

Why We Picked This Card?

Gives you those extra discounts and benefits while you travel, making it a great travel card for students.

3. Citibank Cashback Credit Card

Points to Consider
  1. Citibank CashBack Credit Card rewards you with 5% cashback everytime you pay your utility bills.
  2. Cashback is auto credited to statements in multiples of Rs. 500, thus giving instant relief.
  3. Good first credit card to build your credit score
Joining fees:Communicated at the time of approval
Annual fees: Rs 500
Interest rate: 2.49% per month (29.88% per annum)
pros
  • 5% Cashback on movie spends and utility bill payments through Citi BillPay
  • 0.5% cashback on all other spends
  • Earned cashback never expires.
  • Cashback is auto settled in the statement in multiples of 500
  • 20% instant discount on partner restaurants
Cons
  • Free Lounge access is not available for air travel
  • No standout benefits

Eligibility Criteria

  • Applicant should be an Indian citizen with at least 18 years of age
  • A valid and good credit score is required to be eligible for this card.

Why We Picked This Card?

Having a Citi card in your wallet is always beneficial for your credit history and future loan prospects. Getting one as a student is recommended.

4. Amazon Pay ICICI Bank Credit Card

Points to Consider
  1. Your love for online shopping and wish for getting extra rewards comes true with this super popular ICICI credit card in association with Amazon Pay.
  2. 5% cashback on all online spends using Amazon.
  3. A low income requirement and great rewards for its category
Joining fees:0
Annual fees: 0
Interest rate: 3.5-3.8% per month (42-45.88% per annum)
pros
  • 5% Cashback on all purchases done on Amazon (3% for non-prime numbers)
  • 1% Cashback on all other spends
  • 15% discount on partner restaurants
  • 1% fuel surcharge waiver
Cons
  • Being a student, you have many expenses but this card won’t reward you for them except for certain online spends.
  • If you wish to enjoy the full benefits you need to have an Amazon Prime membership.
  • There are no rewards for purchasing gold and on EMI transactions.

Eligibility Criteria

  • Valid income proof is required.
  • ₹25,000 income requirement for ICICI customers
  • ₹35,000 income requirement for other bank customers
  • Minimum 18 years of age is required

Why We Picked This Card?

Above all the easy approval process and fee waivers, the Amazon Pay ICICI is one of the most rewarding credit cards and can save you big bucks on your online shopping endeavours. This is also one of the rare unlimited cashback credit cards in India.

5. Axis Flipkart Credit Card

Points to Consider
  1. Axis Flipkart Credit card is the only card in this category that provides free domestic lounge access.
  2. Rewards you with 5% cashback on online shopping across Flipkart and Myntra.
  3. Welcome benefits worth ₹ 1000.
Joining fees:Rs 500
Annual fees: Rs 500 (waived off on spends of over Rs 2,00,000 in a year)
Interest rate: 3.6% per month (52.86% per annum)
pros
  • 5% Cashback on Flipkart and Myntra.
  • 4% Cashback on Goibibo, Makemytrip, PVR and UBER.
  • 4 complimentary visits per year to domestic airport lounge
  • 1% fuel surcharge waiver
  • 1.5% on all other spends
Cons
  • No cashback on wallet loading and fuel transactions.

Eligibility Criteria

  • Valid income proof is required for applying.
  • Age at the time of application should be minimum 18 years.

Why We Picked This Card?

Much like the Amazon Pay ICICI, the Flipkart Axis card is super rewarding for your Flipkart purchases. No brainer, really.

6. SBI SimplyCLICK Credit Card

Points to Consider
  1. The SBI SimplyCLICK offers amazing rewards on travel and online shopping.
  2. You also get an Amazon.in gift card worth ₹500 when you register this card.
  3. 10X rewards with partner websites and 5X on all other online spends.
Joining fees:Rs 499
Annual fees: Rs 499 (waived off on spends of over Rs 2,00,000 in a year)
Interest rate: Up to 3.5% per month (42% per annum)
pros
  • Earn 1 Reward point on every ₹100 spent.
  • 1% Fuel Surcharge waiver on minimum spend of ₹500
  • Option of converting transactions (>Rs 2500) into EMIs using Flexipay.
  • 10X Reward Points on Cleartrip, FoodPanda, Lenskart, Bookmyshow, and more.
Cons
  • No rewards on entertainment and dining.
  • Conversion of rewards is not the best.

Eligibility Criteria

  • Approved as per bank norms at the time of application.
  • Valid income proof is required for processing of application.

Why We Picked This Card?

In case you have an SBI Bank, this card makes sense to apply to stay in the ecosystem and also earn decent rewards. It's also one of the best credit cards for reward points.

Compare Best Student Credit Cards

Credit Cards Joining Fees Income eligibility
SBI Student Plus Advantage 0 N/A
ICICI Bank Student Forex Prepaid Rs 499 N/A
Citibank Cashback N/A Rs 25,000 per month
Amazon Pay ICICI Rs 4,999 Rs 25,000 per month
Axis Flipkart Rs 500 Rs 15,000 per month
SBI SimplyCLICK Rs 10,000 Rs 20,000 per month

What to look for in a good student credit card?

1.Interest rate

While you should always spend less than your income, a credit card with a low interest rate is good to have. In case there are some months where you are above your limit, the burden can be reduced even if by a few percentage points.

2.Fees

The joining and renewal fees for a credit card are most important when you are a student or a recent graduate and have a narrow stream of income. Preferably pick a lifetime free credit card or one that has a renewal fees of less than Rs 1,000 per annum.

3.Eligibility

For students and recent graduates, income streams and credit scores are not that great. Go for a credit card that will be eligible for you even if you don’t have a great financial record. Others might not get approved.

4.Rewards

Apart from fees, eligibility, and interest rates, rewards should be on your list when choosing your student credit card. Nowadays, most good cards give the opportunity to earn good cashback and rewards. Be sure not to miss that opportunity.

Conclusion

These best credit cards for students in college offer a lot of rewards but are also to be used responsibly. You should keep in mind that credit cards charge a very high interest rate if the payments are not made in time. As a student you need to tackle a lot of expenses and credit cards can act as a safety net for you. However, you should evaluate your needs and spending habits to make a rational decision.

FAQs

Can an 18 year old get a credit card?

Yes, most credit cards on this list will be eligible if you are above the age of 18 and an Indian resident.

Do student cards build credit?

Yes, student credit cards are a great way to build your credit score to jumpstart your financial journey.

Can a 17 year old get a credit card?

While a 17 year old cannot get a standalone credit card, they can get an add-on of cards owned by their parents. The card can be upgraded to a standalone option once they turn 18.

Can you buy anything with a student credit card?

Yes, you can buy anything with a student credit card as it works just like a regular credit card when making purchases online and offline. There are certain credit limit and benefit constraints, though.