What is a student credit card?

A student credit card is expressly designed for student usage and so is targeted only at the student community. With no, or limited credit history for students, most Singaporean card issuers try to minimize their risk by issuing conservative credit lines and allowing only the least amount of credit leeway on these cards. And so Student Credit Cards are often characterized by smaller credit lines and higher rates.

Benefits-

  • With characteristically lesser credit lines and lesser credit leeway, these cards are a great way to build a responsible credit spending habit. Unless a student is reckless, even a fully charged student card can be completely paid off, without any serious financial damage, as most cards  are designed to not run up amounts, that cannot be paid off. All one needs to do, is to be regular with payments.

 

  •  In order to woo the student community, Student Card issuers often come up with benefits tailor made for students. These benefits  make quite a difference to the student’s buying power, and in the bargain, students stand to gain considerably from these deals.

 

  •  Credit building on a Student Card has an overall impact on the person’s credit history. In Singapore, better credit opens up other doors. Better credit hugely improves the chances for getting a standard credit card( even loans) and also lays down the foundation of your overall creditability. It impacts, even when one has stopped being a student and has graduated to being a professional.

 

  •  Money almost for free-  A Student Credit Card when payed in full, lets one use the sum of money for the whole billing cycle, without any interest. It is one way of availing free credit and can be a great help, especially for students who live on tight budgets.

 

  •  Rewards and discounts-  As a student, every penny counts. For a student the extra frills offered on the card: discounts, cashback deals etc. make more sense and have more relevance.  A discount on travel tickets during Christmas, for example, can make the difference between going home and not going home.

 

  •  Safety-  Campus and dorm life has its share of uncertainties and security issues. Cash is easy to steal and difficult to safeguard, when sharing an apartment or when living in a dorm. Student credit cards are the solution in such situations.
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