The main difference Between Student Credit Cards and Supplementary Charge cards

Credit cards were when a coveted person in the 5Cs in Singapore. The reason why are evident – – they are a typical and convenient payment method for most, especially in the creation of shopping online. In addition, they offer rewards, cashback or even airmiles for the expenses, which further stretches the value of every dollar spent.

However, there remains a segment of the population that are unable to reap the benefits of spending with credit cards – – students. Students are automatically ineligible because they cannot fulfill the basic income requirement for a credit card.

As a result, most students make an application for student credit cards or even supplementary cards (from their parents or legal guardians).

What is the difference between the two? In the following paragraphs, we discover out how these two kinds of cards are distinctly not the same as one another, despite their perceived similarities as well as.

#1 Selection of Cards

When it comes to the option of credit cards available, students tend to obtain the shorter end from the stick. Currently, there are only seven card issuers, namely DBS, Citibank, Diners Club, CIMB, Bank of China, Standard Chartered and Maybank, that issues student credit cards on the market.

However, exactly the same cannot be said for supplementary card. In fact, there is no limit when it comes to the choice of cards. As long as the main cardholder is eligible to make an application for the card, students can make the most and obtain a supplementary card tagged to the crediting account. All they need is to simply request for a supplementary card from their parents or guardians.

#2 Privileges

Compared to mainstream charge cards, most student charge cards offer benefits that are on the lower par than the usual charge cards on the market. For instance, some student charge cards provide a flat cash rebate of between 0.25% and 0.3% (the highest being 1%) on any eligible spend on the credit cards. This is less than the usual cash rebate of at least 1.5% offered on the typical cashback charge cards.

Issuers of student credit cards will often make up for the gap with other privileges that attract younger demographic. These include for a longer time of fee waiver or affordable card membership fees, in addition to merchant perks which range from free admission to nightclubs, or exclusive discounts at selected fashion labels.

On another hand, supplementary cardholders can savor the full merchant benefits accorded to primary cardholders provided by the bank. One disadvantage, however, is the fact that any points and funds rebates which are awarded for transactions allocated to these supplementary cards are credited to the principal cardholder.

#3 Credit Limit

Student credit cards are tailored specially for college students with a reduced and manageable credit limit. The limit is generally pegged at $500. In addition, card applicants who're below 21 years old will require consent from their parents to be entitled to the card. Hence, the risk of non-payment of debts are rather low.

On the other hand, supplementary cards are tagged towards the primary card account holder's credit card limit, even though some card issuers do accord the primary cardholder some flexibility and discretion in determining the credit limit for the supplementary card.

#4 Building Credit History

Credit cards really are a double-edged sword; it can either make or break you. That is why it is important to manage credit wisely and prudently by spending within one's means and try to making a point to pay any outstanding credit card debt entirely before the deadline, which goes towards creating a good credit history for oneself.

Student credit cardholders can tap onto this advantage. As long as cardholders are prompt within their payment, cardholders of these cards can enjoy a head start in building their credit history before they're entitled to a mainstream charge card. A favorable credit history would also mean a smoother application process for other loans and lines of credit later on, for example housing loans or personal credit line.

On another hand, supplementary cardholders do not get this kind of advantage, his or her supplementary cards are tied to the main account holder and never registered under the name from the supplementary cardholder. Hence, for individuals who may wish to begin to build credit rating, they might wish to consider using student credit cards instead.

Whether it is a student charge card, or perhaps a supplementary credit card, one thing for sure may be the want to use credit wisely. Therefore, it is usually a good idea to only spend what you can lead to full every month and also to keep the credit utilization low by prioritizing responsible usage and not earning rewards.