Student credit cards offer many advantages such as quick access to cash, a way to pay for emergency expenditures and most importantly a tool for establishing a credit history. Good credit will serve you well throughout adult life. I’m going to go over some of the more important things you should be looking for when choosing a credit card.

The interest rate that a credit card charges is the most important thing to pay attention to. Many of the more popular cards have an introductory rate of 0% for the first six months or more. Pay close attention to the terms of the card to find out what the rate will change to after the introductory period is over. Rates can typically vary between 11% and 21% on most student credit cards.

Some credit cards for students give rewards points for purchases made with the card. Points can be redeemed for cash, concert tickets, airline tickets, gift cards and many other things. The airline rewards points are pretty popular especially for those students who go to school far from home.

Credit limits vary widely between the different cards from $200 up to $5k. A good strategy is to start out with a fairly low limit in order to avoid the big impulse buys that can result in unnecessary debt.

Proof of income may be required by some card companies. In the event that a student doesn’t have proof of income the card company might approve them with a cosigner. Some cards don’t require proof of income or a cosigner. It all really depends on the specific credit card companies guidelines.

Other cards provide cash back rewards based upon purchases. Cash back varies from 1% to 5% usually based on the specific types of purchases. For example tuition or book purchases may receive a higher percentage cash back then grocery purchases.

In addition the above incentives you may also see cash advances, balance transfers, rental car insurance, online statements, online bill pay and travel accident insurance to name few more.

As you can see there are quite a few things to look for when trying to choose the right student credit card. Make sure to read the contract terms thoroughly so that you don’t get a nasty surprise down the road.