Students need credit cards for several things such as unexpected expenses (college fee, books, exam fees, urgent printing jobs, placement season expenses, etc) that they need to pay immediately. If they delay such expenses, they could miss the offer of a lifetime.
Even in my college life, I had to ask for money from my father at the penultimate hour because there was some fee related expense that could not wait.
However, it is almost impossible for a student to get a credit card via the ususal route because they have zero credit score and almost no credit history.
Hence, I have listed three lesser known ways that can get students a credit card, which not only helps them manage expenses but also build a good credit score for a brighter financial future.
Related: How to get a Credit Card with No Credit History in India?
Fixed Deposit-backed Credit Card
The easiest way to get a credit card for a student is via fixed deposit. Any student above 18 with a valid PAN can easily visit any commercial bank, create a fixed deposit and earn interest on the same while getting a credit card against it for upto 90% of the value of the fixed deposit.
My first ICICI credit card was created with this procedure and it took me less than a week to get the card delivered at my home.
Some suggested banks for such cards are HDFC Bank, ICICI Bank, and Axis Bank. Students can also try with SBI Card against a SBI Fixed Deposit.
Signing as a Co-Applicant (Add-on Card)
If you have an earning member of the family who is eligible for a credit card (min income ₹20,000 per month), you can ask them to apply with you for a basic card such as the ICICI HPCL Coral Card. Here you can easily get an add-on card under your own name.
Note: This information is based on my phone call with the ICICI Bank Credit Card Representative.
As you keep using the card, you might receive a full individual card under your name and then you can start using that.
Credit Card Offered with Student Loans
Several student loans in India offer credit cards along with student loans. These cards are either attached to your student loans as a combined approved limit or are standalone cards.
In most cases, approval is dependent upon your repayment tenure.
Also these cards are offered rarely.
Related: How to get a Credit Card in India with No Income?
Disclaimer: Das Credit provides information for educational purposes and does not endorse any financial company, asset or form of credit. Readers are advised to consult their financial advisor before taking any decision.
About the Author: Dhirendra Chandra Das is a financial analyst holding an MBA in Finance from Jain University and holds 5 years of professional experience and 11 years of financial market experience.
