2. Add on credit cards

Another great and cheap way for students to own a credit card is by getting add-on cards on existing credit cards held by their parents or other members of the family. The add-on cards will have the student's name and can be used as any other normal card. But the responsibility of bill payment lies solely with the parents for these cards.

Some banks allowing primary credit card holders to apply for add-on cards are:

1. Punjab National Bank - The PNB Global Classic Credit Card, The PNB Global Gold Card

2. Andhra Bank - Visa Gold card, Visa Classic Card

3. HDFC - Platinum Plus credit Card, Women's Gold credit card

4. State Bank of India - SBI TATA Premiere Card, SBI Gold & More Card

Limitations

College life opens up a new world of freedom for students. While enjoying this freedom, sometimes students can be extravagant in the use of their credit cards and become spendthrifts. This can be dangerous as uncontrolled usage of student credit cards can make the students fall into a debt trap.

To avoid any such situations students should remember to be responsible while making purchases with cards. They should chalk out a well planned budget and try to remain within the it to avoid any unnecessary expenses. They should also make it a point to use the cards only to make important purchases and avoid impulsive purchases like expensive dresses or laptops.

If used judiciously, these cards are a great way to teach students early on how to manage their financials and build their credit history, which will help them in future.