As uncommon as it sounds, teenagers also have certain demands and needs that they can’t ask their parents to fulfill every time.
Most teenagers are school and college students. It’s common for almost everybody to face uncertainties where there might be the need for some extra cash, something a potential ‘rainy day fund’ could fix.
Or sometimes certain financial requirements come up and there’s an immediate need for some cash.
That’s exactly where a credit card comes in handy for teenagers.
Now it’s common that you can start feeling reluctant about slapping a credit card into your child’s hands, and it’s a genuine concern.
As a parent, worrying about expenditures and the influence of ‘extra’ money is very understandable. Most parents won’t even entertain such a thought. But surprisingly, a student credit card is actually one of the best ideas, and here’s why…
Also Read: Difference between Credit Card vs Personal Loan
The need for credit cards for teenagers
We’re born and brought up in such a society that hates talking about money.
Right from the birth of a child till he reaches the age of joining a college, parents aren’t able to explain the analogy of finance to their children. This practically leaves a student on their own to figure out their financial condition and understand how every financial tool could be helpful to them.
However, an experience with a student credit card can improve things. In fact, allowing credit cards for teenagers will enable them to:
- Be more responsible with their money
- Allow you to track their spends
- Make them understand the importance of money and credit score properly
- Establish healthy financial habits
- Become a responsible borrower
And if you are curious enough already about which card could be the best credit card for teens, we have compiled a list of the best credit card options for teens.
5 best credit cards for teenagers
1. SBI Student Plus Advantage Card
The SBI student plus advantage card is deemed to be one of the best options for minors and students. This credit card is solely meant for students who have borrowed an education loan from SBI. For you to be able to get access to this card, you need to have a fixed deposit in any SBI branch.
One of the best things about the SBI student plus card is that it offers multiple benefits including a zero annual fee. Moreover, every purchase of at least ₹100 gives you a reward point that you can also use to pay your outstanding balance.
The card also allows you a 2.5% fuel surcharge waiver across all major petrol pompous in India. The card could also be used to make international purchases.
The SBI student plus advantage card has features such as:
- 5% cashback on multiple purchases
- Worldwide acceptance
- Booking travelling tickets (flights and trains)
- Utility bill payments
- Balance transfer
If you are going to study abroad, the SBI student plus advantage card is one of the best options for you.
2. The HDFC ForexPlus Card
Being tailored specifically to your international needs, the HDFC ForexPlus Card is pretty much like a credit card, except the transaction amount is debited from the HDFC ForexPlus card balance directly.
The card also allows you to make purchases in ten different currencies that are accepted across all retailers.
You can easily use it with merchants affiliated with Visa or MasterCard. The best part is that you don’t have to suffer extra charges due to the fluctuating market rates.
Even if you aren’t an HDFC bank customer, you can still avail the HDFC ForexPlus Card. However, you would be approved for the card only if you are above 18 years of age.
3. ICICI Bank Student Travel Card
Just like the HDFC ForexPlus card, the ICICI Bank Student Travel Card is an ideal option if you’re planning to study abroad.
With this card, you can not only pay your application or university fees but also use it to make different purchases for daily expenses. With its online payment and swiping ability, you can make purchases with sheer convenience.
The ICICI travel card is accepted across all major or minor outlets that accept MasterCard payments. Most importantly, it also allows you to withdraw money from MasterCard ATMs globally.
What makes this card ideal for students is that you can join the student identity card membership. Joining this membership allows you to avail different discounts on your travel and claim offers that aren’t available to others.
4. Axis Bank Insta Easy Card
With the ability to provide the highest rupee value back to all student cards, the Axis Bank Insta Easy card allows you to earn 1.2% value on all your domestic purchases.
On international purchases, you can potentially earn a 2.4% back. The Axis Insta card provides a variety of benefits for cardholders.
With additional benefits like welcome gifts and discounts across restaurants, you can potentially reap a lot of benefits on the card.
The Axis card also allows you to get extra traveling voucher rewards that you can avail to get discounts on ticket bookings and more, making it a great option for teens overall.
5. SlicePay Card
While SlicePay might not exactly be a credit card, it sure does the job well.
SlicePay is more like a prepaid card service that has a limited amount of money for you to spend. The card is made for teenagers above age 18.
One of the best things about SlicePay is that it works throughout India on all major and minor purchases. The limit is predetermined depending on an existing score.
In case the user doesn’t have any credit history, the limit usually starts at ₹16,000 and keeps on increasing as the credit score keeps on building.
The SlicePay card also allows you to transfer the card amount directly to your bank account, making it easier for you to make purchases and use it for different purposes.
With the impact of credit score on your financial journey ahead, a credit card for teenagers is always the best way to get yourself acquainted with all the fundamentals of a credit card.
However, in any case, adult supervision is always advised on credit cards. While it may be convenient to spend, credit cards could also put you in debt if used carelessly.
We hope these tips helped you explore more credit card options that you can consider.