Right ways to use a student credit card to manage expense

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 A report by All India Survey on Higher Education (AISHE) stated that the Gross Enrolment Ratio (GER) of India in 2017-18 was 27.4 %, which is significantly lower when compared to developed countries like Japan, the USA, and the UK. One of the reasons behind this stark difference can be the financial constraints that students face owing to the ever-increasing cost of education in India. 

However, college dropout rates have declined considerably from 7.49% to 2.82% in higher educational institutions other than IITs and IIMs over the last five years, according to the Ministry of Human Resource Development. In IITs and IIMs, it has decreased from 2.25% to below 1% and 1.04% to less than 1%, respectively. 

This improvement can be attributed to several government initiatives like Bihar Student Credit Card Yojana (MNSSBY) and also easier availability of facilities like student credit cards. Several financial institutions in India offer student credit cards that come equipped with a gamut of features. 

However, irresponsible usage of the same can lead to debt traps and poor credit scores. Therefore, it is imperative to use this payment card responsibly from the very beginning. 

Tips for using a student credit card responsibly

Here are a few ways how you can ensure optimal and smart usage of your student credit cards or any other such cards. 

  • Pay bills on time 

Paying bills before the due date in full will help you to bypass the additional late fees and other applicable charges. Irrespective of the type of credit card, late payment can cost handsomely as a hefty interest is levied every day after the due date. Moreover, late payments don’t reflect well on your credit score. 

  • Maintain a lower credit utilization ratio

Most credit cards for students come with a limit of up to Rs.15000. However, it’s unwise to utilize the entire amount every month as it can make repayment difficult and affect your credit score. Thus, try to keep the spending amount below 30% of the total limit. It’s also one of the ways how you can use a credit card to improve your credit score. 

  • Make use of reward points 

One of the perks of availing a credit card is its reward program. However, they come with limited validity. Hence, it will be smart to check the reward points and their validity to optimize usage. Also, learn about how to redeem credit card reward points to make every purchase even more economical. 

  • Check credit card statements regularly 

Besides possessing a credit card, it is equally important to know how to read a credit card statement. Checking the statement will help you to detect any discrepancy in the same and resolve that immediately. 

Students should also have a clear idea about the features that this card offers to make the most out of it. 

Features of student credit cards

A credit card is one of the most convenient payment cards that cater to a diverse consumer base, starting from students to business owners. Moreover, student credit cards have also become immensely popular over the years due to their customer-friendly features, which vary across lenders. Here are a few standard features of student credit cards in India – 

  1. Minimal documentation

Since one does not need to present any proof of income to avail of a student credit card, the approval becomes prompt. However, the issuance of government-issued cards like the Bihar student credit card can be a tad time-consuming. Get easily apply for a student credit card online.

  1. Multipurpose 

Students can utilize a credit card to meet a diverse range of expenses, like buying study material, enrolling for new online classes, refilling fuel, covering accommodation costs, etc. 

  1. Helps in building a credit history 

A student credit card is also instrumental in building a robust credit history even before graduating. It further helps in applying for feature-rich credit cards and loans in the future. 

  1. Considerable credit limit 

Typically, a student card comes with a credit limit of up to Rs. 15,000 which suffices in meeting the various expenses of a student. However, individuals who want to avail a higher limit and better perks can opt for premium credit cards like Bajaj Finserv RBL Bank SuperCard by Bajaj Finserv. They offer feasible terms of use and other benefits that students can leverage to pay for their higher studies efficiently. 

Such financial institutions also extend pre-approved offers that simplify the card application and documentation process and help save considerable time. Besides credit cards, these offers apply to several other financial products, like personal loans and business loans. You can check your pre-approved offer by mentioning your name and contact number. 

  1. Negligible additional fees 

Another perk of availing of a student credit card is that lenders levy nominal joining fees and annual charges, which make it easier to maintain the card. 

Nevertheless, be it Bihar student credit card or any credit card in general, it is vital to learn about some convenient options to pay your credit card bills. It will guide you to manage your finances efficiently and also help you to build a strong credit history. 


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