If you are a first-time credit-card owner, you may be eligible for introductory credit-card programs that offer students very low annual-percentage-rate interest, or APR. Ask about introductory credit cards at your bank, or look online at the various credit-card companies that offer this program for students.
A prepaid credit card has a monetary limit that was paid at the time of purchase. These cards are ideal for parents who want to control how much money a student spends. Many universities offer campus credit cards like these, which can be paid for through the school's financial department. Students can use the card at campus restaurants, vending machines, gift shops and book stores. When the money runs out, the student cannot overdraw any funds, but parents can put more money onto the card.
Many student credit cards offer reward programs such as travel points, gas rewards and cash back. These incentive-based credit cards encourage students to spend money so they get something in return. When signing up for these cards, find out the terms of the rewards, such as when rewards can be redeemed and how much money must be spent before the reward points activate.
Some student credit cards require a parent or adult to co-sign with the student, while others do not. If students are taking out the credit line themselves, they should look for credit cards that advertise "no cosigner required."
Students can get a secured or unsecured credit card. A secured credit card requires cash collateral -- such as a savings account -- as a funding source. These cards may be ideal for students because they are not based on pulling credit lines based on jobs and income -- which some students may lack. Unsecured cards have access money from a credit line that is determined when the student applies for the card.