Credit Card Options for International Students Around the World

It is a great thing that you have decided to travel abroad for your higher studies, but do you know that this journey has its own set of challenges and opportunities? If you are an Indian student, then the most important thing when it comes to settling into a new country is how you plan to manage your finances. International student card India can be useful as they can help you with your finances and also will help you build your financial credibility in a foreign country. However, the process of obtaining a credit card as an international student can vary depending on the country.

Why is a Credit Card Useful for International Students?

Credit card for international students can make your daily expenses convenient, enable you to purchase online, and most importantly help build a credit history for you. The reason why a strong credit history is required is because it will positively affect your future financial planning like renting an apartment, buying a car, or even applying for jobs in certain sectors. However, before applying for an international student card India, it is important to understand your options and the requirements specific to your host country. Let us start with credit card options in the United States:

Credit Card Options in the United States

Let us understand various international student card India and their types in the United States.

Secured Credit Cards:

Secured credit cards are a popular choice for international students who do not have a credit history in the United States. These secured credit card for international students require a security deposit, which sets your credit limit. Let us understand this with an example, if you deposit USD 500, your credit limit will be around the same amount. Secured cards are a great way to build credit score, but you must use them responsibly. Let us understand some of the most secured credit cards for international students in the US:

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  Discover Secured Credit Card: No annual fee, cash-back rewards, and a straightforward application process. If you are planning to go ahead with a Discover Secured credit card, then we recommend that you read all the terms and conditions on the official website of Discover credit card.

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  Capital One Platinum Secured Card: Flexible security deposit requirements and opportunities to increase your credit limit over time. If you are planning for a Capital One Platinum secured card, then visit their website to learn more.

Student Credit Cards:

Some banks and credit card companies offer credit cards specifically designed for international students. These cards come with low credit limits, no annual fees, and rewards tailored for student lifestyles, such as cashback on dining or streaming services. Following are some of the popular student credit card options.

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  Deserve EDU Mastercard: No Social Security Number (SSN) required, ideal for international students without an established credit history.

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  Bank of America Cash Rewards for Students: Offers cash-back up to 3% in the category of your choice, plus there are many other benefits like no annual fee and other benefits. You can learn more about this card on the Bank of America Cash Reward website.

Premium Unsecured Credit Cards:

You can also get a premium unsecured credit card if you have a good credit score in India. Companies like Nova Credit help students with good Indian credit scores apply for premium U.S. credit cards based on their Indian credit history. That means you don’t have to pay a security deposit or settle for a beginner unsecured card with limited rewards.

Documents Required for Credit Cards

Following is the list of documents required to apply for a credit card in the U.S.:

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  A valid passport
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  Your visa documentation
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  An Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN)
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  Proof of address (utility bills, rental agreements, or other similar address proofs)

Credit Card Options for Other Countries

Let us understand some of the international student card India options available for countries other than the U.S.,

Canada:

The banking system of Canada is relatively welcoming to the international system as compared to that of the USA banking system. Many banks offer international credit cards for students with low fees and rewards programs tailored to newcomers. Some of the popular credit cards for international students in Canada are as follows:

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  Scotiabank SCENE Visa Card: This card has no annual fee and is great for earning rewards on subscriptions for channels, online shopping plans, and other related purchases.

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  RBC Credit Card: Lower annual fees and a simple application process for students make this card a good choice for international students.

Documents required for international credit cards for students include proof of enrollment, a valid study permit, and identification documents. Some banks may not require a credit history or even a SIN (Social Insurance Number) for basic student accounts.

United Kingdom:

In the UK, getting a credit card can be a little more challenging for international students, especially if you do not have an established credit history. However, some banks offer student accounts with credit card options. Some of the popular credit cards for the UK are as follows:

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  HSBC Student Credit Card: This card does not have an annual fee but offers a low credit limit.

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  Barclays Student Additions Credit Card: This credit card is linked to Barclays student account and this card is accessible and practical for everyday use.

To apply, you will need proof of enrollment, a valid visa, and proof of address. Some banks may require an active UK bank account before approving a credit card application.

Australia:

In Australia, international students can get credit cards from major banks, but please note that lack of credit history may limit your options to basic or secured credit cards only. Some of the popular credit cards are as follows:

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  Commonwealth Bank Low Fee Credit Card: A basic card with minimal fees and straightforward eligibility criteria.

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  ANZ First Credit Card: A low annual fee option with a focus on accessibility for newcomers.

Documentation needed for international credit cards for students includes a valid passport, proof of enrollment, and evidence of income or financial support.

Germany:

In Germany, international students can only get secured credit cards, as regular credit cards require a strong credit score, which is not possible for international students. Once the score has been improved, students can go for traditional credit cards. Following are some of the popular credit cards for international students:

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  N26 Mastercard: This is an international prepaid card and needs to be linked to the N26 digital bank account, that you have to create before. Can also be used in other European countries.

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  DKB Visa Card: A secured credit card that has no monthly or yearly fees. Also, there are no account opening charges. This is a recommended option for international students planning to go to Germany for their higher studies.

Proof of residence, identification documents, and a local bank account are required for credit cards.

Important Points Before Applying for a Credit Card

Let us understand some of the most important key points before proceeding with the credit card application form:

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  Understand the fees: Always check for annual fees, foreign transaction fees, and any other hidden charges or surcharges.

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  Build credit smartly: Use your card for small and manageable purchases and then pay off the entire balance in full every month. This will build a strong credit history and will avoid any interest charges.

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  Compare the benefits: The benefits offered by different cards are different from cash-back rewards to travel insurance. Choose a card that goes well with your spending habits.

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  Check eligibility: Visa status and documentation requirements can vary by country and institution. Please check the specific requirements before applying for a credit card.

How can GyanDhan help you apply?

GyanDhan has partnered with Nova Credit and Zolve to help Indian students like you to get an international student card and start their financial journey in the U.S. on the right foot. If you have a good Indian credit score, GyanDhan will help you apply for your credit card.

Tips for Responsible Credit Card Usage

Credit cards are great for building your credit score and for managing your expenses, but please note that if you do not manage your credit card responsibly, then your credit score can be affected negatively. Following are some of the tips for responsible credit card usage:

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  Always pay on time: Late payments can harm your credit score and lead to penalty fees reducing your chances of getting any future credits.

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  Keep your credit balances low: Always try to use less than 30% of your available credit limit, so that your expenses can be manageable and repayment does not become a financial burden.

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  Keep a check on your credit card statements: Regularly review your credit card statements to track spending and identify any transactions that are not done by you, or any fee that is not mentioned to you before. Timely action can save you a lot of money.

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  Avoid over-borrowing: Please keep in mind that you use the credit card for the amount that you can pay in full per month.

Getting a credit card as an international student can make life more convenient and help you establish financial stability in your host country. Whether you are studying in the U.S., Canada, the UK, Australia, or Germany, understanding your credit options and using your credit card responsibly will set you up for long-term success and credit building. Research thoroughly, compare various available options, read the fine print for all terms and conditions, and do not hesitate to ask questions at your bank to find the best fit for your needs.

Frequently Asked Questions