Credit cards are an essential financial tool in today’s world, allowing individuals to make purchases and payments conveniently and with ease.
Credit cards offer numerous benefits, including convenience, security, and rewards. With a credit card, you can make purchases, both online and offline, without carrying cash. This saves you the hassle of carrying cash and allows you to track your expenses easily. Additionally, credit cards offer various discounts, rewards, and cashback offers on transactions, allowing you to save money on your purchases. Moreover, credit cards provide security against fraud and can help you build your credit history. By making timely payments, you can improve your credit score, making it easier to get loans and credit in the future. Thus, using a credit card responsibly can provide you with many benefits.
As a student or young adult, having a credit card can help you establish credit score, build a credit history, and gain financial independence.
In India, there are several credit cards available for students and young adults, each with its unique features and benefits. In this article, we will explore the best credit cards for students and young adults, and what to consider when choosing one.
Factors to Consider When Choosing a Credit Card
Before we dive into the best credit cards for students and young adults, it’s essential to understand the key factors you should consider when choosing a credit card. Some of the factors to consider are:
1. Interest rates: The interest rate on a credit card typically ranges between 10-40% per annum. A credit card with a lower interest rate is generally better to help you avoid paying high interest charges on outstanding balances.
2. Credit limit: The credit limit is the maximum amount you can borrow on your credit card, and it’s important to choose a credit card with a credit limit that meets your spending needs.
3. Annual fees: Credit cards often come with annual fees, charged to your account every year. It’s important to choose a credit card with reasonable annual fees that provide value for your money.
4. Rewards programs: Some credit cards offer rewards such as cashback, reward points, or discounts on certain purchases. You should choose a credit card with a rewards program that suits your spending habits and preferences.
5. Credit history requirements: Some credit cards may require applicants to have a certain level of credit history or credit score to be eligible for approval. It’s important to choose a credit card that matches your credit history and score to increase your chances of approval.
Now that we’ve covered the key factors to consider let’s dive into the best credit cards for students and young adults in India.
Best Credit Cards in India for Students
1. ICICI Bank Instant Platinum Credit Card
The ICICI Bank Instant Platinum credit card is an excellent choice for students, especially those who are new to credit cards. It has no annual fees, and there’s no requirement for a minimum credit history or score, making it easy to get approved.
The card comes with a credit limit of ₹10,000 and is ideal for small purchases and emergency expenses. The card also offers cashback on certain purchases, such as groceries, fuel, and dining.
2. HDFC Bank Millennia Credit Card
The HDFC Bank Millennia Credit Card is another excellent choice for students looking for a credit card. The card offers a range of benefits, such as cashback on purchases in select categories (such as dining, groceries, and online shopping). The card also comes with a low annual fee of ₹1,000, making it an affordable option.
The card also offers rewards points on every transaction, and you can redeem them for cashback or other rewards.
3. RBL Credit Card
The RBL credit card offered by the Bajaj Finserv app is specially designed for students and offers great deals on movies and dining. As a student, you can earn cashback while enjoying a movie or your favourite meal. Moreover, this card offers attractive cashback offers on fuel, making it a great option to save on fuel expenses.
Best Credit Cards for Young Adults
1. Citi Rewards Credit Card
The Citi Rewards Credit Card is an excellent choice for young adults looking for a credit card that offers a rewards program. With the card, you can earn reward points on every transaction, which you can redeem for flights, hotel stays, and other rewards.
The card comes with an annual fee of ₹1,000, which is reasonable given the rewards program it offers. The credit limit for the card is up to ₹20,000, making it suitable for moderate spending.
2. Axis Bank Buzz Credit Card
The Axis Bank Buzz Credit Card is an excellent option for young adults who love shopping. With the card, you can enjoy discounts and cashback on shopping at select online stores, such as Flipkart and Myntra.
The card comes with no annual fees and a credit limit of up to ₹25,000, making it ideal for moderate spending. Additionally, the card also comes with fuel surcharge waivers, making it a perfect choice for those who love to travel.
3. DBS Credit Card
The DBS Credit Card offered by the Bajaj Finserv app allows customers to enjoy cashback offers, and discounts on online shopping, dining, and entertainment. The card offers multiple reward points for every purchase made through this credit card. Customers can redeem these reward points on various services, including flight bookings, travel bookings, hotel bookings, and more. The card also offers exciting deals on fuel expenses where you can earn cashback.
Choosing the right credit card as a student or young adult can be overwhelming, but with the right factors in mind, you can make an informed decision. When choosing a credit card, consider factors such as interest rates, credit limits, annual fees, rewards programs, and credit score requirements.
There are several excellent credit cards available for students and young adults in India, each with its unique benefits and features. Choose the one that suits your spending habits and preferences, and enjoy the benefits of financial independence.