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Student credit cards have long been a source of debate. Some factions feel that it's a form of predatory lending, giving young adults with little in the way of a financial education, or limited time for a job, a passport to buy anything their credit limit allows. Others feel that it is almost necessary in today's credit obsessed world, for college students to not only learn the ins and outs of credit, but also to use the time in college to build a health credit profile. First let's take a look at why credit is so important.

A good credit history is required to obtain many of the necessities of today's society. For example, credit checks are routinely performed by employers when you apply for a job, landlords when you get an apartment, banks for auto, home, and personal loans, and cell phone contracts. Some industries, such as the financial advisory field, will not be able to license you if you have bad credit. Negative credit profiles will not only affect whether or not you even get one of the above, but also how much you will pay for it. A higher credit score will always be a determining factor in how high your interest rate is. No credit is often as bad as, if not worse than, bad credit. Lenders and interested parties, will not want to trust a person with no repayment history over an established borrower. So, then, how do you start?

The student credit card is a great way to jump into the world of credit. Many lenders have developed these cards to specifically cater to the needs of college students, often having fewer restrictions on income and credit worthiness. The limits are usually lower than a standard credit card, which is not only understandable, but a boon to most students on a fixed income. Interest rates will often be higher than a standard card, but the lender is taking a risk on a new borrower. Most lenders do have a provision that, as long as the borrower has a good repayment history, the card can be reevaluated in 12 to 24 months for an increase in limit, a decrease in rate, or conversion to one of their standard credit products. Many now even have rewards like cash back, introductory APR's (annual percentage rate) of 0%, and no annual fees, normally reserved for standard credit products. www.findcollegecards.com is a great resource for comparing credit cards side-by-side with multiple lenders, and choosing the best deal for you. If you don't make the minimum requirements for an unsecured card, try a secured card instead. You deposit money with the lender and they grant you an equal credit limit. You pay as usual, build your credit history, and, if you keep up on the payments, you get your deposit back (often with interest) in a year.

As with any credit product, it is a good idea to include someone who has experience in borrowing when making your decision on which card to choose. Also, the entire point of getting a card at this stage should be the development of your credit profile, and emergency use, so ensure that you are able to make the payments on the card before purchasing. If you feel uncomfortable with the amount of credit you are offered, most companies have a provision allowing you to decrease your card's limit. Remember a good repayment history will open many doors for you, while a bad repayment history will stay with you for at least the next seven years, and is much harder to repair than simply starting off on the right foot. Many states allow you one free report per year, so be sure to take advantage of it.

Learn more about this author, Christopher Johnson.
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