January 16, 2025 · 8 mins read
Santosh Kumar
Getting your first credit card can be challenging when you are a student with limited income or no established credit history. However, you may not always need a fixed deposit (FD) to get a card. Some credit cards are designed for students and young users, with eligibility criteria based on factors such as age, student status, income, banking relationship or the availability of a parent or guardian as a co-signer.
A credit card without FD can help students manage short-term expenses, earn rewards and start building a credit history. However, understanding the fees, credit limit and repayment terms is important before applying.
CTA_BANNER
Yes, some students may be able to get a credit card without providing a fixed deposit. The eligibility requirements vary between issuers.
Depending on the card, the issuer may consider factors such as:
The source notes that student cards may be available without an FD and may have eligibility requirements based on student status, age, income and banking relationships.
A credit card without FD is an unsecured credit card that does not require you to create a fixed deposit as collateral.
With an FD-backed card, the deposit provides security to the issuer. With an unsecured card, the issuer generally assesses your credit profile and other eligibility factors instead.
For students, this can be useful because they may not have enough savings to lock into an FD or may simply want a card designed around their current financial profile.
A student credit card can offer several benefits when used responsibly.
1. Build Your Credit History
Using a credit card responsibly can help you start building a credit history. Paying your bills on time and managing your spending can help establish good credit habits for future borrowing.
2. Manage Short-Term Expenses
A credit card can provide access to a predetermined amount of credit for eligible purchases. This can be useful for planned expenses or unexpected situations, provided you have the ability to repay the bill.
3. Earn Rewards and Discounts
Some student cards offer cashback, reward points or discounts on eligible purchases. Depending on the card, rewards may be available on categories such as shopping, dining, or travel.
4.Lower Fees
Some student-focused cards may have lower or waived fees compared with certain premium cards. However, you should always check the issuer's current fee structure before applying.
5.Safer Than Carrying Cash
Using a credit card for eligible purchases can reduce the need to carry large amounts of cash. Card transactions can also be monitored through statements and banking apps.
Before applying, consider both sides of using a credit card.
| Advantages | Disadvantages | | ----- | ----- | | Helps build credit history | Overspending can lead to debt | | Convenient for online and offline purchases | Interest may apply if dues are not paid as required | | May offer cashback and rewards | Late payments can attract fees | | Can help manage short-term expenses | Credit limits may be relatively low | | Digital statements make spending easier to track | Multiple applications can affect your credit profile |
The source specifically highlights building credit, emergency spending, rewards, cash-flow management and security as potential benefits, while recommending responsible use.
The credit limit is the maximum amount of credit made available to you by the card issuer, subject to its terms.
Student credit cards may have lower limits than standard cards. The source gives a general range of ₹10,000 to ₹25,000, while also noting that the actual limit depends on the bank and the applicant's profile.
A lower initial limit can make it easier to control spending while you learn how to manage credit.
Your credit limit may increase over time if you demonstrate responsible usage, maintain timely repayments and meet the issuer's criteria.
There is no guaranteed method for getting easy credit card approval, as every issuer has its own eligibility and verification process.
However, you can improve your application by:
1. Checking the card's eligibility criteria before applying.
2. Keeping your personal and KYC information accurate.
3. Providing valid proof of student status where required.
4. Providing income documents if the issuer asks for them.
5. ConsiderConsidering a co-signer or guarantor if the card permits it.
6. Applying only for cards that match your profile.
The source notes that some student applications may involve a parent or guardian as a co-signer or guarantor.
The application process generally involves the following steps:
Look for student-focused cards or cards with eligibility requirements that match your financial profile.
Review the minimum age, student status, income requirements, credit history requirements and other conditions.
Depending on the issuer, you may need documents such as proof of identity, address proof and student enrolment or admission documents.
Apply through the issuer's official website, app or other authorised channel.
The issuer may verify your details and assess your application before making a decision.
Once approved and delivered, follow the issuer's instructions to activate and start using your card.
The source follows a similar application process involving research, eligibility checks, documentation, card selection and approval/activation.
If you do not qualify for a card independently, an add-on card may be another option. An add-on card is linked to the primary cardholder's account, which is often held by a parent or guardian.
The primary cardholder remains responsible for transactions made using the add-on card.
Some issuers may also permit a parent or guardian to act as a co-signer or guarantor for eligible student applications.
Getting a credit card is only the beginning. Your spending and repayment habits are important.
1. Pay your bill on time: Missing payments can result in additional charges and may negatively affect your credit profile.
2. Don't spend your entire limit: A credit card limit is not a spending target. Spend only what you can comfortably repay.
3. Track your expenses: Use your card statement or banking app to monitor your spending.
4. Start small: Using your card for manageable purchases and repaying them in full can help you develop responsible credit habits.
5. Don't apply for multiple cards unnecessarily: Compare your options and apply only when you have a genuine need.
The source similarly recommends timely payments, avoiding overspending, tracking expenses and building credit gradually.
Instead of looking for a universally good credit card to apply for, compare cards according to your needs.
Consider:
For a first credit card, a card with straightforward terms, manageable fees and a suitable credit limit may be easier to manage than a card with benefits you are unlikely to use.
A credit card without FD can give eligible students an opportunity to access credit without locking money into a fixed deposit. It can also help them learn responsible money management, build credit history and access rewards or discounts.
However, approval is not guaranteed, and the available credit limit and benefits depend on the issuer and applicant profile. Before applying, compare the card's eligibility requirements, fees, rewards and repayment terms.
Whether you're looking for easy credit card approval or simply want your first card, responsible usage should remain the priority. Spend within your means, track your expenses and pay your bills on time to build healthy credit habits.
1.Can students get a credit card without an FD?
Yes, some student-focused cards may be available without an FD. Eligibility depends on factors such as age, student status, income and the issuer's requirements.
2. What is the credit limit on a student credit card?
Student cards generally have lower limits than many regular cards. The actual limit depends on the issuer and the applicant's profile.
3. Can a student increase their credit card limit?
A student may become eligible for a higher limit over time if they demonstrate responsible card usage and meet the issuer's requirements.
4. What are the main benefits of a student credit card?
Depending on the card, benefits may include building credit history, cashback or rewards, discounts and convenient access to short-term credit.
Download the app from PlayStore
