Ca a student have a credit card on his name even if he is a minor? I have tried to contact State Bank of India for this matter but I have not been replied yet. Any opinion from you guys?
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A minor cannot enter into any contract. He cannot incur liability. Hence, credit card cannot be issued to minors. If a minor does not pay back his dues after using credit card, bank cannot recover the amount from minor. Hence, no bank will issue credit card to a minor. However, a minor may have a bank account subject to certain rules for minor account. A Debit card can be issued but not a credit card.
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
gulshan kumar ajmani wrote:
[quote]A minor cannot enter into any contract. He cannot incur liability. Hence, credit card cannot be issued to minors. If a minor does not pay back his dues after using credit card, bank cannot recover the amount from minor. Hence, no bank will issue credit card to a minor. However, a minor may have a bank account subject to certain rules for minor account. A Debit card can be issued but not a credit card.[/quote]
Thank you Tax Conultant Sahab.
But can an adult apply if he doesn't have any job or does not have any other source of income ? Is there any copulsory need of a collateral ?
