What are the rules for using a student credit card?
Curious about Credit cards for students
In India, the Reserve Bank of India (RBI) has issued guidelines that credit card issuers must follow, which includes rules for using student credit cards. Some of the key rules for using a student credit card are:
1. Age: The minimum age to apply for a student credit card is typically 18 years old. However, some banks may require applicants to be at least 21 years old.
2. Income: Students are typically not expected to have a regular income, so some banks may not require proof of income to issue a student credit card. However, banks may require the applicant to have a savings account with them to be eligible for a credit card.
3. Credit limit: The credit limit on a student credit card is generally lower than that of a regular credit card. The credit limit may depend on the student's academic performance and the bank's policies.
4. Usage: Student credit cards can only be used for personal expenses and not for business purposes.
5. Repayment: The cardholder must pay their credit card bills on time and in full to avoid late payment fees and interest charges. It is advisable to pay the entire outstanding balance on the credit card to avoid paying highinterest rates.
It is important to read the terms and conditions of a student credit card before applying for one to understand the specific rules and regulations of the bank issuing the credit card.