Best credit cards for international students: Top 3 picks for abroad

If you are a student planning to pursue education abroad, financing your expenses might be the biggest challenge. Apart from tuition fees, students will require funds to cover several expenses such as living costs, insurance, medical services, etc. There are several tools available in the financial landscape that would cover such costs, and a credit card is one of them.

A student credit card is specifically designed to manage their expenses. Just like a usual credit card, it provides several rewards, cashback offers and other benefits. However, only students above 18 years are typically eligible for these cards.

Features of a student credit card

1. Fees and charges: Most student credit cards do not levy any joining fees and have minimal annual fees compared to a usual credit card.
2. Credit limit: A student credit card typically offers a lower credit limit. This is to ensure that students do not accumulate debt by spending excessively.
3. Validity: The validity for most student credit cards is around five years, which is more than a usual credit card. However, several credit card issuers may set their own validity period. Cardholders are required to check with their respective issuers regarding the validity of the card they are planning to get.
4. Documents required: Applying for a student credit card needs less documentation work than a usual credit card. This makes it easier for students to get the card quickly and conveniently.

Some risks associated with student credit card

1. There is a chance missing the due date of credit card bill payments which could add costs in the form of high interest rates, late payment fees etc. Additionally, it lowers credit score too, this would lessen the chances of getting a loan or credit in future.
2. Students may resort to overspending as credit cards offer the feature paying at a later date. Regular overspending will lead to accumulation of debt, which will hamper financial health significantly.
3. If a credit card is not used strategically, without a proper budget and a plan it will not develop a responsible financial behaviour among students. This will hamper the management of finances in future.

Best credit cards for students studying abroad

HDFC Bank ISIC Student ForexPlus Chip Card

This card by HDFC Bank is specifically designed to cover the expenses of students studying abroad. Unlike most student credit cards, this forex card is valid for two years.

Features 

• This single currency forex card is available in US dollars (USD), euros (EUR) and Great Britain Pound (GBP).
• It is accepted by all VISA or MasterCard-affiliated merchants across the world, along with online shopping.
• It provides counterfeiting protection upto ₹5,00,000, accident insurance, lost baggage and documents insurance coverage, loss of cash in transit coverage.

IDFC FIRST WOW Credit Card

IDFC FIRST WOW Credit Card is a secured credit card that can be used by students as it offers several rewards and benefits. This card also charges zero forex conversion fees, making it ideal for students studying abroad. It is a lifetime free credit card.

Features 

• Get around 4X reward points on expenses.
• It provides a 100 per cent credit limit on the fixed deposit amount.
• Get up to a 7.25 per cent interest rate on your fixed deposit amount.

ICICI Bank Student Forex Prepaid Card

This student forex card is designed for students studying abroad, by helping them to spend money in different currencies easily. This card is valid for five years.

Features 

• Get a free international SIM card on this card.
• Avail 20 per cent discount on courier services by DHL.
• Get membership to the International Student Identity Card (ISIC) of around ₹999.

In conclusion, for students studying abroad, a credit card helps to manage the need for emergency funds and provides benefits on certain transactions. However, students must be careful while using a credit card by avoiding overspending and by paying bills on time.

(Note: Using a credit card carries its own set of risks)