Credit cards have vital benefits for students. It is a worry-free way to pay college fees. You might get cashbacks, miles and reward points. This makes it an affordable option. Paying the card bill will help create a good credit score early in life. It then becomes easy to get loans. It is also a useful tool if you are an outstation student. The funds can be utilized to pay for food, rent and miscellaneous needs without financial crunch at any time. It offers a sense of peace since you can stay afloat during emergencies as well.
Different types of credit cards flood the market. But you must pick an appropriate one. It will help you to reap all the above-discussed benefits. The most important factor to check is your lifestyle pattern first. Here’s how to get a credit card that could suit you well.
Affordable ATM Withdrawals
Look for a credit card that offers 0% interest on ATM withdrawals. The top Indian banks offer it for up to 48 days. It is usually known as the ‘introductory period’. You can easily make big spendingsnow. For example, purchasing a laptop or clearing off your semester fees at once would be a smart option at this point. But do read the terms and conditions thoroughly to avoid any surprises down the line.
Non-Expiry Rewards
A free credit card becomes all the more lucrative with lifetime active rewards. The top banks also offer 0 redemption fees. You can earn 10 points on every ₹100 spent on spends more than ₹20,000. Students can also enjoy 6X and 3X points at online and in-store transactions per month for spends up to ₹20,000. Further, you must be able to enjoy a few extra perks and privileges. For example:
- Movie discounts
- Travel benefits
- Online and dining discounts
- Insurance and EMI offers
All of these can help you make the most of your student life. Discounts on online credit cards help save a great deal of money. It is especially a helpful option amid a pandemic situation.
Low Interest
The best credit cards will have an interest rate from 9% to 36% per annum. This can cost you less to borrow funds. It also encourages both ‘credit’ and ‘consumption’. Further, low interest rate makes it easy to pay off your credit debt. You are less likely to miss on the payments or compromise on your lifestyle to clear the EMIs smoothly. Timely bill clearance can boost your credit score and let you get student loans without hiccups.
Payment Charges on Foreign Currency
You might be residing abroad for studies or internships. International transaction charges will be imposed when you make payments from a foreign country. The forex markup would be 3.5%, 1.99% and 1.5% for different cards. Read the terms and conditions well. Try to opt for a card with zero or minimal charges to ensure higher savings.
The best credit cards can be an excellent financial tool for students. Picking the right one will help you budget and build a great credit history in future.