How to Choose the Best Student Credit Card

First off, it’s vital that you establish a good credit history before you leave campus. Your credit score can determine your credit card interest rate, of course, but it also impacts your insurance payments, ability to rent an apartment, and even job prospects. Show that you can be trusted with credit now, and reap the benefits down the line.

If you carry a balance, you should look for the lowest interest rates around. If you’re planning on making a big purchase, look for a card with a 0% intro period, but if you routinely have debt, look for a low interest credit card that’ll give you ongoing savings.

If you don’t carry a balance, you should look for a rewards credit card that fits your spending profile. There are cards that give extra rewards on gas, groceries, movies…pretty much anything. The best card for students, in our opinion, is the Citi Forward for College Students, which pays 5% on books, movies, music and eating out, plus bonuses for good behavior. Best of all, Amazon.com is considered a bookstore, so all your purchases from there will get 5% rewards.

Do you need a co-signer?

The Credit CARD Act of 2009 changed the way that students – and everyone else – apply for credit cards. No longer can you put down your household income (ie, your parents’ or your spouse’s): if you’re the only one signing the application, you can only put your individual income. As a result, if you aren’t earning a salary, you’ll need someone to co-sign the loan. This can have its advantages. You’ll probably get a higher credit limit and lower APR than you would with your (presumably) limited credit history, and you can build up your credit score without paying too much by way of fees. If you’re dead-set against having  a co-signer, you may have to use a secured credit card to build up your credit until you have both a decent FICO score and an income.

The most important thing is not to lower your credit score. This is when you need to focus on establishing yourself as a responsible cardholder, so don’t carry too much debt, don’t miss your payments, and don’t put off getting a credit card so long that you’re turned down for not having a credit history.