October 7, 2024 · 20 mins read
Santosh Kumar
Beginning to construct your credit history when you are only eighteen can pave the way toward your future well-being in terms of finances. Good credit is achieved early, which is meant to aid in short-term expenses. In the future, better chances will be available when it comes to getting loans with low interest rates or higher credit limits or even renting a house or getting a job. A good credit score is like a resume for money, showing how dependable a person is to money lenders and institutions. Building this foundation early is very important as larger problems can be imagined in the future when the individual needs credit.
Adulthood in India brings about the daunting age of borrowing, which is very new and challenging for young adults. A few of them asked if they would even get a credit card or if there were some options available for people without a credit history or credit age. The good thing now is that a few banks and other credit cards for 18 year old in India are being made available. These cards are relatively straightforward concerning the documents required and other terms, as there is very low or no annual charge, which is why they are suitable for 18-year-olds just starting. Some even have Allied Cards that include certain amendments for students, like skipping fees on foreign transactions or bonus points in case of travel.
You should bear in mind that even as it is very easy and empowering to have a credit card, one has to exercise some control over his or her spending habits. If you adhere to payment schedules and use your credit card responsibly, you will be on your way to nurturing a good credit score. Conversely, suppose you live within your credit limits but develop a habit of non-payments and overdue payments. In that case, your credit score is bound to be negatively affected, and such citizens may find it hard to access credit instruments later. The idea is not to load yourself with debt but to take a credit card that is appropriate for what you want to achieve and utilize it for the purpose it was intended to improve your money habits. For those applying for their first credit cards at age 18 - these credit cards for 18-year-olds in India have low or no annual fees, minimum requirements, and added benefits that make them suitable for students or young professionals. Below is a guide to the best options available.
For 18 years old, credit cards might not be a compulsory need but it could be an important thing if he/she is in India. The student credit card or a credit card for 18 years old comes with multiple benefits. Along with the importance of credit card for this age group, there comes certain responsibilities too. Knowing the importance will actually define the responsibilities. Let’s look at the importance of having a credit card for 18 years old, especially in India.
The early access to credit card helps in building your credit score higher as early and quick as possible. When some people are struggling to maintain a good credit score, you can ease having a good credit score with maintaining the credit card properly. This could be your fresh and good start for your credit history. This is because, with this credit score only, the financial aids and loans for the future are approved.
Budget management is yet another advantage or importance that comes along with the credit card for 18 years old. With the strict money management requirement, one can learn how to manage money and how to spend it accordingly on the necessary things. It will also help them in avoiding the overspending of the money. This in turn will aid to the good credit score.
There are several benefits that comes along with getting a credit card as early at the age of 18. As discussed above in the importance, getting an opportunity to maintain a good credit score at the early days is one of the major benefits of holding a credit card at 18. Credit score is the crucial thing since it predicts the trustworthiness of you to the money lender and further approval of the loans or any kind of money lending processes.
Financial independence is something that is essential for each and every individual in the world, irrespective of any gender. So, getting a credit card at 18 will give you the needed financial independence and this will thereby help you in learning the money management techniques. Since we are living in a digital era, credit cards are available for online payments and it is easier to use. Credit cards come with cashback offers and rewards options and this could be exciting thing to get some discounts.
Before choosing a credit card, there are certain features that you need to look into and finalize the one that has all those specifications that would give the maximum benefit out of it. Here’s a list of features to consider.
Low or no annual fee: Since you are 18 years old and most probably will be unemployed, it will be better if you look for a credit card with low or zero annual fee.
Low interest rate: Credit cards will be charged an interest rate if you miss out a payment or you have a balance due. In those cases, you will be charged the interest rate and it is appreciable to choose a card that comes with low interest rate.
Card type: While applying for a credit card, you can check if the card is either a student credit card or it could be appropriate for a non working youngster.
Cashback and rewards: Most of the credit cards will have rewards and cashback offers. So, you need to check which card provides maximum such benefits and filter from the lists.
Digital banking options: It is preferred to check if the card issuer company has their own banking application and you are comfortable using that. In this digital era, without the app, it is easier to keep track of your expenses.
In order to obtain credit card in India and especially considering you are 18 years old, there are some of the requirements set up by the banks and financial institutions. For that, you should be 18 years old and must be a citizen of India. Since you are 18 years old and might be a student or a young professional, there is no requirement for you to have a good credit score. This is due to the reason that you might not have had credit card before and these might be a new thing. Considering this, the credit score criterion hasn’t been considered. Other minimum requirements include the documents that are supposed to be submitted during the application process.
There is a list of documents that you might need to submit as a proof for your profile and to build the trustworthiness. Those includes the following:
Proof of identity: You can submit either one of the following as a proof for your identity. It includes your Aadhar card, PAN card, passport, voter ID or driving license.
Address proof: As for address proof, you can submit either your Aadhar card, Passport, or utility bills like electricity bills, etc.
Age proof: For age proof, you can provide your birth certificate or 10th or 12th marksheets or even Aadhar card could do the job.
Passport size photograph: You are supposed to carry passport size photograph of yours during the application process.
Sometimes, your college ID or admission letter will also be asked for documentation.
If you would like to get a credit card, let us check what is the process to get a credit card for 18 years old in India. First, you have to select the credit card type which you would like to get after doing a complete research of all the available credit cards from all the banks. Secondly, you need to check the eligibility criteria and see if you can fit in those features. The eligibility of being 18 years old with a PAN card are necessary. Make sure you have all the copies or the originals of the required documents for the proofs. Then you can apply for the credit card either via online or to the bank’s branch. If it is online application, you can check with bank’s website, fill the application and submit it. The following step is the verification process. Your details will be double checked and the card will be approved if the details are authentic. Finally, you will receive the card and will be able to activate the card and start using it.
Basically, the interest rate for the month will be between 2.5% to 3.5% and if you are paying the money on time, then there is no need to pay any interest for your card. The annual fees depends on the type of credit card you are getting. Some credit cards will have zero annual fees while some will have a low annual fee. You can check those details and have several options to choose a card of your choice.
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The SBI Student Plus Advantage Card is particularly attractive to such 18-year-old individuals seeking to kickstart their credit history. This student-at-heart card is intended to enhance the student's experience while providing value for money without the affliction of higher fees or demanding harsh terms. One of its key benefits is the fact that there is no joining fee, which is particularly attractive to people who have no source of income and are just starting their businesses. Furthermore, it has a lower rate of interest, which helps users repay their debts without the pain of high-interest repayments.
A factor of interest while discussing the SBI Student Plus Advantage Card is that it does reward its cardholders. Customers can earn 10 reward points for every 100 rupees spent in such categories as dining services, grocery, departmental stores worth purchase and others. These reward points can later be redeemed for various perks, including discounts on various entertainment and lifestyle options, which greatly benefits students who like spending and wish to maximize their purchases. The card also supports cash withdrawal through the ATM, especially when cash is the only immediate option.
The regulatory framework for availing the SBI Student Plus Advantage Card is more straightforward, which is why even 18-year-olds can now apply for it. Students who may not yet have a solid track record or income can remain eligible, owing to opposing enrollment standards. Furthermore, students can turn their purchases into EMIs by accepting this card, which is useful for certain big purchases or payments every month that they want to break down.
Another advantage that makes the SBI Student Plus Advantage Card more appealing is the ease of use across borders. For students who intend to go for vacations or schooling somewhere far away, this card would probably help them since it can be used in any country, thus eliminating the need for many alterations when one goes shopping or withdrawing money in different countries. In addition, students can receive a refund of up to 2.5% of the fuel surcharge when they purchase petrol from any Bullington petrol outlet across the country, clearly saving money when carrying out various activities.
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The HDFC Bank ISIC Student ForexPlus Card is meant for students going abroad or preparing to go abroad and is the best in the section. Unlike regular credit cards, where the users do not have to prepay in this case, this is more of a prepaid Forex credit card where the owner can pre-load foreign native currencies and use them in innumerable cases. This makes sure students avoid the cost of incurring overhead costs of conversions and also depressed exchange rates, thus making this one an
The Forexplus card for students, ISIC has some great advantages: its International Student Identity Card (ISIC that some countries can hold, and certain items such as books, programs and different educational utilities have deep discounts in more than 130 countries' marketplace. Even more, some student-specific discounts on general consumption items purchased in particular shops and restaurants or travel and tourism services exist, which will trim normal expenditures while one is on foreign soil even more.
Additionally, the HDFC Bank ISIC Student ForexPlus Card has an optional accident insurance facility, reassuring students and their families. This safety feature also ensures students are protected in case something untoward happens to them, and they are overseas. Its other added advantage is that it assists young adults in learning financial discipline since there is a limit on how much they can spend since only what's on the card can be used. It works best for students who study abroad as well as those who would like to travel.
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ICICI Bank makes the best use of these handy lime aph Bin Ploothed offers to the customers to attract 18-year-old holders who are still quite young regarding credit history. More than an ordinary credit card, this is secured; thus, getting a fixed deposit with the bank is necessary, which guarantees not just approval but sensible financial behaviour as well. It is still a card as it is onto your own money, so there is no risk of overshooting the limits given, and thus is a perfect beginning stage for those young adults who want to be financially independent but avoid pitfalls.
One of the card's benefits is its allowance for reward points offerings, as with any other transaction, which includes groceries, fuel, utility bills, etc. These reward points can be converted into lifestyle benefits like discounts on some restaurants and various activities such as shopping and travelling, making the card very useful to young people or students with basic expenses. Also, this card offers an additional 15% saving for certain selected outlets like restaurants in India, further appealing to the young people who love eating in such places.
Since the ICICI Instant Platinum Credit Card contains an affordable credit limit, users may improve their credit score over time as long as they have been servicing their obligations on time. This card also has no annual fees, so entry-level consumers find it advantageous as they are stepping into the credit world. Moreover, because of its contactless payment facility and international utility, this card is convenient to use and multifunctional for first-time users by allowing them to enhance and maintain their credit status.
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The Axis Bank Insta Easy Credit Card is aptly designed for youngsters around the age of 18 who intend to build their credit profile without going through the hassle of a credit card. Because this is a fixed deposit secured credit card, the approval process is cut out, making this ideal for young adults just about to take charge of their financial future. The cardholder can use the credit card without the risk of accumulating debts, as the card's spending power is directly proportional to the amount in the fixed deposit.
Dinner at these restaurants, for example, is enhanced thanks to a 15% cashback on any partner restaurant, which is one of the best-selling aspects of the Axis Bank Insta Easy Credit Card. Therefore, this benefit assists users in enjoying their money and ensures youngsters can learn the best spending behaviours ever. The card also provides reward points for every 200 INR, which can further be redeemed against benefits, including vouchers, merchandise, discounts on travel, etc.
The card image on the application was made more appealing because it had no annual fees, which means that the card users would not be subjected to extra expenses as they commence their credit journey. Steps to apply for the card are easy, and since a term deposit collateralizes it, even those with no experience or a limited financial background can qualify. Utilizing the Axis Bank Insta Easy Credit Card appropriately will enable young adults to start building a decent credit score, which will be advantageous for other credit products like loans and cards with bigger limits in the future.
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The Kotak 811 #DreamDifferent Credit Card may be the best option for teenagers who are just entering the credit space. For this credit option, a fixed deposit is put as collateral, making it a credit option available for people without a credit history. This has the advantage that young people will understand how finance management works upon using the card. It should moreover be pointed out that they need not wait until they are much older when such opportunities present themselves. Young adults are able to acquire this card. In no time, they will augment their credit rating history, which will be beneficial in the future as they seek out other credit facilities, including loans or credit cards with higher limits.
Another encouraging aspect of the Kotak 811 #DreamDifferent Credit Card is the fact that cardholders get to earn rewards for the categories that matter most to them – dining, travel and entertainment. This makes the card useful and beneficial, as the users can earn points and redeem them for goodies and discounts. There are no additional fees required to be paid that young adults can hold onto the card for long without considering annual charges suitable for persons in entry-level positions.
Another prominent example is unobstructed money back on some selected categories for this age group, which consequently helps them build credit cleanly over time. Making daily purchases less expensive encourages healthy spending patterns. Further, the Kotak 811 #Dream Different Credit Card has the benefit of quick and effortless approval, especially for new users. This credit card provides the perfect opportunity for the youths to data their credit history against such incentives; thus, it cuts across the market for finance builders.
The IDFC FIRST Millennia Credit Card is a good card for young adults who are starting their credit journey. There is no annual fee, and this card offers various benefits such as unlimited reward points, discounts at dining, and cashback offers. Cardholders earn 10x reward points on online purchases and 6x points on offline transactions. This card also offers free entry to select airport lounges, making it an ideal card for students who travel.
Interest-free cash withdrawal up to 48 days helps to manage emergencies; the application process is simple with minimal documentation and thus is suitable for a credit card for an 18-year-old in India.
This flexible credit option comes in the name of the RBL MoneyTap Card 18+. It can provide a pre-approved credit line by using an app that is really easy to understand. The joining fee is totally free, with rewards on each purchase. So big-ticket purchases could be converted to EMIs to make it quite a good finance management tool for students.
This credit card also comes with a special "Split and Pay" feature, which allows users to split their expenses into smaller, manageable payments. There are no hidden charges, and it is transparent, making it one of the best credit cards for an 18-year-old in India.
The HSBC Student Credit Card is designed to cater to the needs of students and young professionals. It offers zero joining fees and provides cashback on utility payments, online purchases, and dining. Cardholders can earn reward points for every INR 100 spent, redeemable for vouchers, discounts, and merchandise.
This card also has a free personal accident cover so that students are safe and worry-free. It is an international usage card and, thus, can be utilized in case a student goes abroad for studies. With a simplified eligibility criterion, this is another great credit card for 18-year-olds in India.
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It is never too early to start building your credit history, and it is good to do so at 18 years old. An appropriate credit card, in conjunction with proper management, will help one get a good credit history in the future. You can look for a student card, a secured card, or a rewards card since the reasons shared here will help you in your efforts.
What are some fees that come with student credit cards?
It's important to note that student credit cards usually do not have an annual fee; if they do, the amount is very low.
Can I take a student credit card outside of the country?
Yes, some student credit cards, such as the HDFC ISIC ForexPlus, can be used, especially for overseas students, and the benefits are advantageous.
What will happen if I skip a credit card payment?
The consequences include being charged a late payment fee, a higher interest rate, and hurting your credit rating.
Do credit cards assist one in building up good credit compared to debit cards?
A credit card is designed to establish credit history, while a debit card does not affect credit history.
How much money can I charge on my credit card while still maintaining a good credit rating?
Raising the upper point of utilization is fine; however, it is best to only use 20-30% of the credit limit to sustain a good score.
Are Credit Cards for 18 year olds in India safe to use out of India?
Yes, credit cards for 18 year olds in India are generally considered safe for use abroad.
Credit card for 18 year olds in India has any penalty or not for inactivity?
No, there is no penalty for inactivity for credit card for 18 year olds in India. However, regular usage is recommended to build a good credit history.
Can one apply for a credit card for 18 year olds in India without a savings account?
Most of the Banks will mandate a savings account to apply for a credit card for a 18 year old in India.
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