Can a student get a credit card?

Credit Card Nigeria


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Posted by on Thursday July 26, 2012 9:17:26:

We already know that there are quite a number of banks in Nigeria already offering credit cards branded by Visa and Mastercard but are there really any available for Nigerian students?

What really is a credit card? A credit card is simply a card that offers the owner access to credit or loans by a bank and is normally tied to a collateral or form of security that ensures that such credit or loan is repaid.

Now I know that banks mostly offer naira credit cards to employees who have a salary account with the bank and can at least prove they have a valid source of income. What about students who are not working yet? Is there a credit card plan for them?

I thought I should do a bit of research first on this by checking out the card products available to students who are still struggling to find their base in life.

Overview of credit card by Nigerian banks
This is one card product that is available to anyone who is over 18 and has what it takes to get a loan from a bank. According to some bank websites I visited, it is not really attached to a salary account or anything like that but to a line of credit so you can provide other collateral.

The bank also allows anyone including students to get credit cards if they have a fixed deposit a/c with them and still get to keep the interest your deposit earns you.

The following cards are available to anyone:
- Zenith bank Visa Credit card:
- Access bank Visa card
- Ecobank Visa card:

Acceptable collateral
Banks don't give out loans without a form of security so even students would need to provide a form of assurance that they can repay the loan attached to a card.

So, you will need a collateral such as:

- Fixed deposit account
- Share certificates
- Salary account (Not precisely for students)
- Other acceptable collateral

The idea behind credit cards in Nigeria is to give you access to cash when you urgently need them and repay back within the required time which is mostly a month. Any unpaid withdrawals normally bears interest so it's best to avoid having to accumulate interest. Besides, using you card is an easy way to carry money rather than carrying cash.

The easiest way to get a credit card for a student is to simply open a fixed deposit account. So in essence, you've have access to use money and repay within the time frame and still be able to earn interest on your fixed deposit investment.

Tip:
When applying for a credit card, read through their terms of service and identify things such as rates and repayment terms. Also checkout their monthly fees.



Comments:
Re: Can a student get a credit card? Posted by Dan Pat on Wednesday October 17, 2012 at 13:47:1:

Mr Okoli, ur hints hav been stated very clearly and has been very helpful.lyk u said and i quote "I thought I should do a bit of research first on this by checking out the card products available to students who are still struggling to find their base in life".......wat if i dont hav a fixed deposit account and i also do not hav d resouces to do so,wat shud i do,where do i start from?...bcos as a self employed student who is struglin to find a base in ma lyf i need dis credit card.tanx.




Re: Can a student get a credit card? Posted by Felix Okoli on Wednesday October 17, 2012 at 13:47:1:

You can try using a third party's collateral as security to secure a credit card.





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