Money Management
April 12, 2023

Student Credit Cards in India : Myths & Facts

Misconceptions over student cards in India. Download Xare instead of using a credit card and avoid the fees.

CreditCards are becoming a popular financial tool for young adults. They can help you establish a credit score, gain financial independence, and manage your finances better. Putting purchases on credit cards rather than using cash gives way to a raft of benefits, from earning rewards to gaining valuable consumer protection.Many believe that frequently using a credit card could prove dangerous or drive them to debt. However, credit cards can be nifty if used correctly and carefully. Here are some common myths that have been going around student cards in India - debunked!


Myth: Student cards come with "frivolous" charges.

Fact: Credit cards generally charge annual fees, late payment fees, foreign currency markup fees, over-limit fees, etc. These fees can be substantial when combined.However, several credit cards are on the market with a low annual fee and waivers on most other fees. Thus, you should choose a student credit card that is transparent about its terms and conditions.


Myth: Student credit cards require a lot of documentation. 

Fact: Most students do not have a credit history. Under normal circumstances, this might result in more paperwork. However, several options exclusively for students allow you to apply online with minimal documents and have your application processed promptly.


Myth: Student credit cards are only beneficial for students planning to study abroad 

Fact: Students who move abroad to study will undoubtedly benefit from a credit card.However, even if you continue your studies in India, a credit card will help you ease your daily expenses as a student. With detailed monthly statements and features like autopay, having a credit card can help you save on everyday expenses and luxuries you purchase occasionally.


Myth: Student credit cards in India cannot be used after graduating from college 

Fact: Student credit cards can help you build a credit history and a positive credit score. This can later be used to achieve larger financial goals like buying your first car or a house. Giving up your student card right after graduating college is not mandatory.


Myth: Student Credit Cards come with higher interest rates 

Fact: Student Credit Cards offer interest rates starting from as low as 9% p.a. on carry-over balances.


As a student, your source of funds is usually your parents. Rather than getting a separate credit card and asking your parents to transfer money into your account, just ask Xare! Xare is a free banking app that lets you share your cards with loved ones. As a student, all you need to do is download the app and ask your parents to share their card with you. They can set spending limits and control where the card may be used to ensure maximum safety.  You can also form a XareClub and invite your siblings or other family members to it, in order to enjoy benefits offered by different credit cards. So, if you are a student looking for a banking option, ditch the card forms and sign up for Xare!

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