Chase, Citibank and Discover all have credit cards tailored specifically to the needs of college students. These cards offer many of the perks associated with premium consumer cards such as rewards, no annual fees and online banking services.

College students who desire to establish credit are invited to apply for these special offers.

Our Assessment
Now is the very best time to establish credit, when you are still a student. If you wait too long, graduate and get a job, it is much harder to qualify for a credit card or a loan. This is because the banks look at a student's potential while they look at the reality of that entry level job held by the recently graduated worker.  Student Credit Cards are Highly Recommended. 

A Guide to Choosing the Right Credit Card

Annual Fees
Some credit card issuers charge an annual fee to help offset costs that they incur in maintaining accounts. Since so many cards have no annual fee we generally encourage consumers not to choose a card that has an annual fee, but there are two exceptions:

• Many rewards cards do charge annual fees. It's up to the consumer to determine if the amount of the reward they will earn by using the card will overcome the cost of the fee before they apply.

• Some people with poor or damaged credit will only qualify for credit cards which charge an annual fee. Later on, as they rebuild their credit these consumers may be able to negotiate away the annual fee or move on to a card that does not charge an annual fee.

Annual Percentage Rate (APR)
The APR is the yearly interest rate or percentage that the cardholder pays on their outstanding balance in the form of interest. The larger the balance that the cardholder expects to maintain, the more important it is to acquire a card with a lower APR. What is the APR for purchases? For cash advances? For balance transfers? Is there a penalty rate if you make late payments?

Balance Transfer
A Balance Transfer is the process of moving an unpaid credit card balance from one issuer to another, usually to a card with a lower annual percentage rate to lower interest charges. First time applicants or consumers without appreciable balances do not have to consider this option. Others should make sure that balance transfers are offered by the new bank before they apply. Consumers should also look beyond the introductory rate offered by the new card to make sure that the savings will continue past the introductory period.

Credit Limit
The Credit Limit is the maximum amount you can borrow using your card. Make sure that the card you apply for has a credit limit that far exceeds the total of your monthly spending and expected balance if possible since staying close to your credit limit, even though you don't exceed it, may negatively effect your credit score.

Customer Service
Many banks and financial institutions offer toll free customer service numbers to handle problems. Some issuers provide concierge services on their premium credit cards. Be certain the issuer provides the level of customer service you desire before you apply.

Disclosure Statement
Certain key pieces of information must be included in all solicitations or applications for credit cards. Look for a link to the disclosure statement on each online application.  It will look like a box with info on interest rates, fees, and other terms for the card you are considering.

Fees
Sometimes additional fees apply for cash advances, balance transfers, charging amounts over your credit limit, and late payments.

Fixed Rates
An APR that does not change in response to interest rate changes and conditions. This does not mean that the rate will never change. Just that the rate is not tied to an index.

Grace Period
A period of time — usually 20-25 days — when you're not charged interest for purchases you've made. For example, if the billing date on your credit card bill is May 1 and you have paid your prior balance in full, you may have until May 20 to pay your new balance in full. If you do, you will not be charged interest. If your payment arrives after May 20 — or if you don't pay the entire balance — you may be charged interest from the date of purchase as posted. Some accounts have no grace period, which means interest is charged on purchases from the date they are posted.

Introductory Rates
A special APR that applies for only a limited period of time. Sometimes also called a teaser rate. Consumers should make decisions as to which card to apply for based on the final rate, not the introductory rate.

Rewards
A point accumulating program based on purchases or transactions made on your card. These points can be redeemed for the particular program you enrolled in (e.g. airline, gasoline, etc.) Banks may charge annual fees to participate in rewards program. Consumers should consider three things when considering a Credit or Charge Card which offers rewards:

1. Will the amount of the reward earned by using the card overcome the amount of any annual fee and possibly higher APR on balances that using the card accrues?

2. Will the consumer actually benefit from the award? Earning points toward a product or service that the cardholder is not going to use is not a benefit.

3. Is the reward convenient? Does flying a particular airline, staying with a particular hotel chain or using a certain brand of gasoline make sense for the cardholder's lifestyle?

We generally prefer cash as a reward for it's convenience and versatility.

Variable Rates
An APR that periodically goes up or down based on fluctuations in market interest rates as reflected in a published index (e.g., the prime rate published in the Wall Street Journal).