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Young Indians Build Credit Early with Student Cards
11 Feb
Summary
- Student credit cards offer convenience and rewards for everyday spending.
- Responsible use establishes a credit score for future financial needs.
- Some cards allow credit access without income proof via fixed deposits.
Young Indians are increasingly utilizing student-friendly credit cards to establish creditworthiness early in their academic careers. These financial tools are transforming from being exclusive to salaried professionals into accessible instruments for college students to manage daily expenses and build a foundational credit score.
Banks are introducing student credit cards with low entry barriers, zero annual fees, and controlled limits, positioning them as early financial learning tools. Beyond convenience and rewards like cashback and discounts, responsible credit card use is vital for developing a credit history essential for future loans and rental agreements.
Products like the IDFC FIRST WOW! Credit Card exemplify this trend, offering features such as no joining or annual fees and interest-free cash withdrawals. Crucially, these cards can be secured against a fixed deposit, allowing students to access credit without income proof while managing risk.
Responsible usage involves timely repayments and maintaining low credit utilization, habits that positively impact credit scores. Banks are focusing on transparency and digital management, making these cards suitable for young users learning financial basics. Early credit adoption, when done correctly, can provide Indian youth with a significant advantage in the formal financial system.
