Why Students need Credit Cards
Student Credit Cards are meant for high school and college students and have their own plus points:
* For a student its a safe and secure means of payment.
* It helps somone starting off in the credit card game and lets them get used to, to the increasingly cashless society.
* It gives credit to students who otherwise dont’t qualify with most other banks or card issuers.
How Student Credit Cards help students:
* Learn to manage credit responsibly.
* Build up a good credit score. This can help them meet and finance their future aspirations once they are into a full fledged professional career and/or have a family.
Features of Student Credit Cards
Here are some important features that students need to look out for when opting for a Student Credit Card:
No Annual Fee
Annual fees on cards that charge them are not insignificant sums and can only be an additional burden for students. If you are a student in search of a Credit Card, opt for one that charges no annual fee.
Most Credit Card Issuers offer incentives for using their Credit Cards. Don’t miss out on it! Go for a card that provides you rewards in the form of Reward Points and/or Cashback. Also make sure that you’ve read and understood the terms and conditions governing the Rewards structure.
Annual Percentage Rate (APR)
APR stands for the Interest rate that is applicable to the Credit Card you are looking at. The ideal Student Credit Card will have a zero introductory APR for the first few months followed by a low APR regime. In practice, Student Credit Cards use an APR structure that is directly proportionate to the credit history. So, make sure you pay your dues in full!
Travel assistance, travel/accident/medical insurance, protection from fraud liability and extended warranty protection are the other stand-out features that you should check your Card out for.
Although no banks or financial institutions in Malaysia offer Student-specific credit cards, students may get Credit Cards in the following ways:
Supplementary Credit Cards
Students can get supplementary Credit Cards where the primary Cardmember is one of their parents.
Against Fixed Deposit
Students can save up and request issuance of a Credit Card against the funds in the Fixed Deposit. But, remember that the Credit Card limit may not be a large percentage of the fixed deposit.
If a student is working and can produce relevant pay documents (Salary slips for RM 2k/month atleast; but do check the eligibility criteria) then he/she may apply for a Credit Card on such basis.