0% APR Student Credit Cards

This can be a complete success or a complete disaster. A lot of this will have to do with how frugal you are with your credit cards and how aware you are of your credit situation. Many students can go through a great deal of trouble because they don’t realize that this amazing interest rate can vanish instantly.

A credit company only has to give you a 15 day notice before they drop the hammer and the interest rate goes from 0% to anywhere between 15% and 30%. You could see a higher interest rate because they considered the grace period a big favor for you, but in reality it is just a pain in the butt because you might have piled up debt that you can only make minimum payments on and then you have no way to pay it off after they bump up the interest rate.

That is why it is important you go over the Terms and Conditions and find out if there are any changes that could happen during the next year or as long as you have the card. Sometimes you can find cards with 6 months or a year of guaranteed no interest. This can be a huge opportunity for you to leverage someone else’s money if you have some good strategies in place.

I personally got into a lot of debt after a failed business experience. It was a lot for a college student anyways. I felt as though I had no way out. I was at square one and I had to find a job and just try to get out of debt. Well I had gotten a cash advance of $10,000 for that year and I had to make some changes. I didn’t realize this until about August when I was down to about nothing and I had until the end of the year to pay off the line of credit. So I started improving my spending and found a good job. My situation improved, but I realized that it wasn’t going to happen by December of that year. So I found another company that gave the exact same opportunity for 12 months with a 0% APR. I took advantage of it and used the cash advance of this company to pay off this other card and it bought me another 12 months. Within the first couple months I was out of the hole and I was able to pay off the second card.

So you see that this can be a great opportunity to buy you some time to find out your financial life as long as you realize the terms of the card. Next you have to make sure you spend wisely and live a well budgeted lifestyle for your income. If you can do this then you will find 0% APR credit cards a blessing and not a curse.

Credit Cards for Students in the UK

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Students in the UK need to establish credit history as much as students in the US. Far be it from credit card companies in the UK to pass up on this lucrative market. Here is a quick review of three cards you could pick up while you’re away at university.

Barclaycard Student Credit Card

Barclaycard is a well known credit provider in the UK. Their student credit card offers some decent benefits, but before you apply they want you to fit a few qualifications:

• Credit history without major blemishes (as in bankruptcy or multiple missed payments on credit lines).
• You can’t be a current Barclaycard credit card holder.
• You have to have a permanent address in the UK.
• You have to be at least 18 years old, and you you have to be heading into college.

If you meet those requirements, you should apply and you’ll be entitled to some good benefits. They offer 20% discounts with certain retailers, 2 for 1 leisure vouchers (not sure what that is), and prize draws for cardholders.

Their interest rates are reasonable – coming in around 14.9%.

Graduate Barclaycard Credit Card

They’re looking for you to have all the same requirements as the normal student credit card, but they also want you to have at least 10,000 pounds annual income.

If you qualify, here are a few benefits:

• There’s no annual fee.
• They offer fraud protection.
• Purchase Delivery Protection which ensures your mail order or online purchases against loss or damage until they get to you.
• Online account management.
• Text notification of payment due dates (if you want them).

This isn’t a bad card for the graduating student to pick up as you leave college and enter the workforce.

Natwest Student Credit Card

A prominent UK credit provider gives students a great offer for what may be their first credit card. Here’s a brief summary of the benefits:

• Great discounts with online retailers.
• A grace period that may last as long as 56 days.
• Daily cash advance limit of up to 300 pounds.
• No annual fee.
• Use your card worldwide when you travel.

The final benefit I see is they offer a maximum credit limit of 500 pounds. This will keep you from getting yourself in trouble while you’re working toward your degree.

Which reminds me, I have a few recommendations for any student getting a credit card. The most important one is to understand what a credit card is, and what it isn’t. A credit card isn’t free money. They’re going to make you pay them back, and if you’re late or if you even carry a balance your best case scenario is paying high interest rates, you’re worst case scenario is paying high interest rates and high fees. Sounds good right?

It doesn’t have to go that way though. You can use the cards wisely and your credit card will be your best friend. Enjoy those rewards!

Apply for Secured Credit Cards

A couple of years ago my little brother crashed his car and needed to buy a new one. He wasn’t looking to get anything too expensive or brand new, but he didn’t have the cash for a car. He was going to have to get a loan. Only one problem, right? He didn’t have the credit history to get approved for the loan, no matter how small it was. He had to have my parents co-sign the loan with him. Both he and my brother in law should have looked to apply for secured credit cards as a way of building their credit history.

My brother in law went through the same thing. The weird thing was he actually makes decent money and had a nice chunk of cash in the bank. He went to apply for a loan, and they wouldn’t approve him for anything. The only option they gave him was to put some of his cash in an account and they’d let him borrow enough money for the new car. I’m thinking – why would I give you the cash so I can borrow some money? Why not just pay cash for the car?

Both of these guys were in the same situation, they didn’t have enough credit history to get approved for the loans they needed. How do you get that history? You need to open lines of credit.

It’s like the old saying about getting a job – you can’t get a job without experience, but you can’t get experience without a job. The solution to the problem in the professional world is to get yourself an internship. You work for free for a while to get yourself some experience. The employer doesn’t have to risk much because you’re not getting paid, but it’s worth it for you because you’re getting the experience people are going to look for when you interview in the future.

In the world of credit cards, the internships you get are called secured credit cards. Since you don’t have the experience (credit history) that makes them feel safe giving you a credit card, you have to minimize their risk.

The solution here is that you apply for a secured credit card. Basically you’re putting down some money – giving it to the credit card provider as collateral just in case you decide not to make your payments. They know they can use your deposit to cover unpaid balances (but you won’t leave those balances unpaid, will you?), and while you’re making payments they’re sending good reports about you to the credit bureaus.

Of course, while you’re doing your credit card internship, make sure you apply for low interest secured credit cards. There’s no reason to pay a bunch of interest while you’re establishing yourself as an experienced credit user. Eventually you’ll have enough ‘on the job experience’ so credit card companies will give you the credit cards you want. Just make sure you use them wisely…

Are Secured Credit Cards Bad For Your Credit Score?

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I am sure you are looking for ways to improve your credit score. One of the ways you may have heard of is getting a secured credit card to help slowly turn your misfortune around. You may have heard the opposite. Are secured credit cards bad for your credit score?

Well first let’s take a look at what a secured credit card is. It is secured by a deposit account owned by the cardholder. If you find yourself in this situation you may notice that a regular requirement is a 100% to 200% deposit for the total amount of credit desired to use. So if you deposit $500 then expect a range of credit between $250 and $500 at your expense.

Sometimes you may see the card issuers exude a flash of kindness offering a deposit sometimes less than the 100% of the desired credit availability, possibly even as low as 10%. This is actually done to inspire more responsibility in the mind of the credit customer. Obviously payments are strict because most people are in this situation because of lavish spending and mindless awareness toward payments. If there is a default on the payment then the issuer has the option to recover cost by keeping the deposit.

There is an advantage toward having a secured card, the companies report regularly with major credit bureaus and this allows for faster establishment of good credit. Think of it as being on probation with a parole officer. You can get out for good behavior.

These are really great tools that can give a lot of people a break to prove themselves with baby steps. They are often offered by companies with Visa and MasterCard logos on them, so that will allow for a lot more use in areas that you may not have had access to and we all know how easy it is to swipe a card instead of writing a check. Expect higher fees and service charges compared to non secure credit cards. If you have had a rough history with your credit and high consumer debt, then this will actually be financially more affordable for you.

Now some people will assume that it is bad for your credit because the credit bureaus look down on your involvement with them. To tell you the truth that is ridiculous and otherwise they wouldn’t be recognized by credit bureaus, but some are scams just like any business.

The real problem is if you have a secured credit card issuer that doesn’t report often to the credit card bureaus. You want to avoid issuers that say to call a costly “900” number only to deny you, and if they do accept you then you will pay annual fees, higher than average interest rates, application and processing fees, and countless other ways to nickel and dime you to death.

Make sure they ask for a credit report, this shows their legitimacy by establishing guidelines, and don’t get it from “credit repair” companies or “credit clinics.” They will help you clean up your credit for a fee, but often you can correct genuine mistakes or outdated information by getting a hold of credit bureaus personally. In the end it comes down to time and good behavior, parolees.

Consolidate Student Loans and Credit Cards

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I don’t think most high school seniors fully grasp what they’re getting into when they go to college. And I’m not talking about the classes, choosing a major, trying to decide what career you want to go into when you graduate, the parties – I’m not talking about any of that.

I’m talking about money. In business when you talk about fully loaded costs you’re talking about factoring in every single penny that goes into the operation of your business. Most kids don’t know what the fully loaded costs of college are, because it goes way beyond tuition.

Of course they still go, and they get their degree (a lot of them do anyway), and what do they end up with? Debt. Mountains of debt.

Here are a couple of statistics to prove the point*:

*According to CreditCards.com.

That’s a lot of debt, and a lot of kids are carrying it at high interest rates. If they don’t do something about those interest rates, they could be in that debt for the rest of their lives. Or worse, they file for bankruptcy. That’s why so many graduating college students are looking to consolidate student loans and credit cards.

How to Find a Consolidation Company for Student Loans and Credit Cards

I can tell you this – there are about a billion of them out there. I got out of school over three years ago and I’m still getting offers in the mail from companies trying to help me “save thousands in student loan payments”. I also get stacks of offers from credit card companies offering lines of credit to consolidate my credit cards.

It’s pretty much this simple – look around. Use google. Use consumer reports. Find a company that is going to truly save you a lot of money by consolidating your debt for you. I can tell you it will usually be in your best interest to do some kind of student loan consolidation program, because they can get you really low rates.

You have to watch them on the fee side. I’m not saying they shouldn’t make money. I’m saying they shouldn’t set you back a couple years of payments just to get you set up with your new plan. They’ll make plenty of money on the other side of your loans, because they can sell them off to other debt companies. Consult with a finance professor or an accountant for advice on which offer is the right one for your circumstances.

Compare Student Credit Cards

Credit Cards are a commodity product. What does that mean? Commodities are products that are really only differentiated by the price and terms of the purchase. A mortgage is a commodity product, as are homes, cars, cell phones – you get the idea.

Why do I bring up commodities? Because when you’re going to compare student credit cards you have to understand there probably won’t be much difference between them when it comes to rates, fees, etc. You’ll want to dig a little deeper for the intangible benefits offered by the different card providers.

Let me give you an example:

I read a review from a young man in the UK that had applied for a graduate student credit card with Barclay. He wasn’t happy at all. He had three main complaints: 1. They asked for a letter proving his status as a graduate student, then didn’t accept the letter he sent them. 2. Their customer service center was located in India, which on its own might not have been a huge problem, but the agent he spoke with seemed to give him a lot of attitude and spoke with such heavy accent that they couldn’t even understand each other. 3. They finally approved him for the card, but only gave him a limit of about $500. His feelings? “What’s the point?

Near the end of the review he also complained about the high interest rate. Lastly he mentioned having transferred all balances to a Virgin credit card.

What’s the lesson? I’m guessing this guy initially liked the idea of opening a student credit card with a notable company, looking to build his credit score and his credit history. What he got was a lot of hassle and he ended up with a credit card he didn’t even use in the long run.

I strongly recommend reading some reviews online of the customer service a credit card company offers. Just because you’re a college student looking for an opportunity to improve your status as a credit holder doesn’t mean you have to settle for mistreatment by the company you’re generating a bunch of revenue for. Find a card that treats you well. I’ve had great experiences with Bank of America’s customer service.

Compare Rates for Student Credit Cards

So let’s say you’ve found a couple of companies offering student credit cards that have great online reviews for how they treat their clients. At this point it comes down to price and limits. That means getting down to the cold hard numbers – what interest rates are they offering on balance transfers and purchases? How big of a credit limit will they give you? Do they charge application fees or an annual fee?

Once you know they’re going to treat you right, and you know the numbers make sense, go for it.

Credit Cards For People With Bad Credit And Student Loans

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Well there are many former students out there that have finished college and are trying to establish a career, but they have years of bills to pay. This is a big hassle because potentially you can have bad credit, especially if you have missed payments on your student loans. Obviously there are a lot of things that go into what your credit score is and a student loan can have an impact on that. If you miss a payment then you are going to get hit on your score. It will take a good six months of on time payments to bring your credit up or to even be considered. So don’t miss any more payments if you have.

Student loans usually have lower interest rates then credit cards, so I would probably stick to using that loan for expenditures before going after a credit card to use. On average interest rates for student loans are around 5%, but a credit card can have an interest rate around 15% and if you have bad credit or little credit history then it could be up to or over 20%. This can be silly for you to take on if you don’t know how to use it correctly. So first before getting a credit card, consider your spending habits and how you can improve it.

Students With Bad Credit And Loans, Looking For Cards And Checking Accounts

If you do decide to get a credit card then the first thing that you should probably do is set up a checking account and a savings account. Look at some store credit cards as options to get your credit going, just don’t spend like a 13 year old girl before her first day of school. Use it sparingly and pay off all debt quickly. The next step would be to get a secured credit card that will require a deposit and probably an annual fee (not always). There will be high interest rates, but the same rules apply for this as with the store credit cards. Use this simply as an experiment to improve your credit. You would be amazed how many people go nuts and think this is actually their money. I deal with this everyday and it boggles my mind.

This will take a few months and continue to pay off your student loan. If you have to, look at using the student loan to pay off any credit card debt as a last option. This can be intelligent if you are in a bind because the rates for the credit card will be higher and you want to always pay off higher interest rates first. In the end if you are a student with bad credit and student loans, finding credit cards and checking accounts can be very beneficial if you decide to use your dollar bills wisely.

Credit Cards After Refinancing Student Loans

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This is a sticky process. Many have gone through a consolidation process of refinancing your student loans to try to decrease your interest on the student loans. So now you are looking for ways to improve your credit and you want to find out how to get a credit card because you have heard that a credit card is going to help you out of your financial bind. Well this can be true. There are some options that you can look at. First make sure that you are in the clear from your refinancing process so that you can apply for credit cards. Whenever you go through a refinancing, you probably can’t get a new line of credit or use the current ones you have too extensively.

One of the first steps you should take is to find out where your credit is at and what type of cards companies can offer you based on your credit, income, and any other debts you may have. It is important that no matter what happens with your credit card situation, you are able to be consistent on paying off your student loans. This is fundamental for any person looking to keep their credit. One late payment can put you in the dog house, while six solid payments in a row can begin to help your credit improve.

The Appropriate Credit Cards While Paying Off Student Loans

So when you have found out where your credit score is at and you have finished the consolidation process for your student loans then you can start looking at cards. Depending on where your credit is, you might have to start off with a secured credit card before moving forward with an unsecured credit card. This is fine because whatever type of credit card you have, you need to pay your bills on time and spend wisely with your new card.

If you are struggling to find the right card and you just want to improve your credit then you should start by opening a checking and savings account if you don’t have one and make sure to pay your normal bills on time like rent, utilities, car payments, etc. If you can do this, then this will be a good first sign for any creditor. Next you need to look at store cards as options. These are just some examples other than using the student loan itself. Don’t put yourself in a difficult situation where you are going to have to worry about consolidating your credit cards a year after doing the same with your student loans.

Credit Cards for Student Looking To Build Credit History

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There are plenty of credit card companies that are willing to send offers in the mail, bombard your e-mail account, and call to see if you want credit cards. These companies are drooling to offer credit cards for students looking to build credit history. I remember when I turned 18 my mom kept a huge stack of all of the credit offers that I started receiving. It was relentless and made me think of how many companies out there are looking to prey on college and high school students to get them to spend money carelessly. Many credit card providers take the same stance as gun dealers, “Card issuers don’t kill credit, customers do.” This can be a very true statement because many students are willing to dump their credit in the trash very quickly.

First of all I think that you need to realize quickly how important your credit is. There are so many things you can purchase out there where your credit is going to be vital. Good luck getting a car or house without good credit. You better have liquid assets to use or even if you get your desired items then you will probably have to pay high interest rates or have large payments required. You will appreciate good credit often, even in simple purchases where a credit check is necessary to get a security system, a boat, furniture, televisions, cell phones, etc. It is basically your financial integrity to society.

Here are some things to look at before getting a credit card. Start by opening a checking account and a savings account. This is a good sign for a creditor to tell of your financial history and if you pay off bills like rent or utilities. Next get a store credit card and pay off your items you buy there promptly. These are easy to obtain, they give you some kind of discount, and can help you to start intelligent credit habits. You might have to get a secured credit card initially, which will require a deposit that equals the credit limit you are going to establish. This is another nice way to get your foot in the door.

When I was in high school I got a line of credit through my mom’s account that she cosigned on. This helped me out a lot. I really never used the card and my mom taught me early on how to pay these cards off consistently. If you are concerned you will not be able to pay it off or just want to save time then do what I did and set up an automatic payment relationship. When it came time to get my own account it was easy. So approach your parents and explain you want to establish your credit. Most parents would consider that very mature of you and look for some way to help you do that.

Are College Students Misusing Credit Cards?

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In the last several years credit card companies have pursued college students a lot more aggressively. I hate to say it, but the marketing strategy of the big tobacco companies comes to mind – Hook ‘em while they’re young. I’m not saying big credit providers are as predatory (and at least using their product won’t kill you – physically anyway) as the tobacco companies. I’m saying they recognize that if they can snag college kids while their young they’re more likely to retain that customer for a long time – maybe life.

What’s the affect on the financial situation of our young men and women on the nations college campuses? It doesn’t look great.

Here are four statistics I can point out:

• In 2004, 83% of students with at least one credit card in their name had a credit card with a balance in excess of $2300.
• 32% of students had four or more credit cards in 2004.
• As of 2004, the average graduate student had six credit cards and one in seven owes more than $15,000.
• In 2005, 65% of teens failed a financial literacy test according to the Jump$tart Coalition.

Consider them individually, then consider them as a whole. What you see is a lot of debt carried by the majority of students in a country where most kids don’t really understand how to manage their finances. Scary? A little. College students do appear to be misusing credit cards.

Credit cards may not cause lung cancer, but it wouldn’t be too much of a stretch to call them a financial cancer – if they’re used unwisely and mismanaged. As I’ve said before, I love credit cards. I use them to my financial advantage every day. Our students need to be equipped with the knowledge so they don’t misuse their credit cards.

Here are the three most important methods for avoiding exorbitant credit card debt as a student:

1. Keep your limits low – for now. When I got my first credit card it had a limit of $1500 and I promptly maxed it out. Stupid right? Yeah, it was. I wish I’d had a limit of $500 so when I made the mistake it wouldn’t have taken me as long to pay for it. Once you’ve learned discipline with your cards, get higher limits. I have several large limit cards now and they’ve served me well. Just make sure you know how to handle them.
2. Make it a habit to pay the balance every month. You hear this one a lot, but you never hear that the biggest reason to do it is it becomes a habit. Once you’ve done this for a couple years it will come naturally to you to pay the card every month, avoiding late fees and high interest charges.
3. Don’t carry more than 2 cards. The more you get, the harder it is to keep track of them. I really wouldn’t recommend opening department store credit cards. They have ridiculous interest rates and they don’t help build your credit much. Use a couple of cards a lot and pay them off, and you’ll get the credit building benefits you’re looking for.

Capital One Student Credit Cards

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Capital One is a great provider for a lot of people with struggling credit. I suggest that you take a strong look at them if you are a student and you have had some bad credit in the past or just simply don’t have any credit history. Everyone starts from scratch. If you are in high school or college it is best if you can get some good history going before you buy the home and get the nice car or for future investments where credit is important like real estate or security systems.

Capital One has some solid rates for first time credit holders. Their range can be anywhere from the high teens to the low twenties in APR. This credit percentage can very. Understand that it isn’t fixed and even if it was, it would be probably for a few months and then the rates would alter. It also might be news to you that the interest is high, but you just have to be diligent with your payments. There are no annual fees,which is a nice plus. Some card companies can nail students with a lot of fees. This is a safe option that you won’t have to face a lot of hidden charges with.

For those that are trying to improve a lackluster credit then you will probably have lower interest rates by 5% then a new credit customer. Although if you are late on a fee, then expect your interest rates to double. They put bad credit customers on a short leash. If you are late you will also pay a fee anywhere between $20-$40. You will have to pay an annual fee, usually around $19. The credit limits for both of these types of cards will be between $300 to $3000. You probably have a better chance to get a higher limit if you have previous history, even if it is bad.

Capital One Student Credit Cards For Canada

These tend to be guaranteed credit cards, but they do have some hurdles that you are going to have to jump. It is interesting to see how Canada runs their credit cards compared to America for students and people with a challenged credit history. There is an annual fee of around $60 and a security fee for the account. This security fee is basically similar to many secured credit cards in America.

The interest rates are the same as a secured credit card too, around 20%. You won’t be able to get as high of a credit limit as an American student, the highest they offer is only $750 Canadian. Even with the currency rates that is still an advantage to the American student. Never the less, this is a great opportunity for a Canadian college or high school student to build a strong history or rebuild a shaky past.

Chase Student Credit Cards

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Chase +1SM Student Visa Card with Flexible Rewards:

One thing I’ve enjoyed about being a Chase card holder is being able to take advantage of promotional introductory rates. This student credit card offered here is no exception. They offer a 0% introductory rate on purchases for a certain period of time after you open the card. After the introductory period ends you’ll get an APR as low as 18.24%. Not great, but I’ve seen worse. Way worse.

The +1SM Student Visa Card also offers a pretty generous rewards program. It’s set up on a points system where you earn a point for every dollar you spend (on what they call “eligible purchases”). Once you accumulate enough points, you can exchange those points for cool stuff — travel, cash, merchandise and even gift certificates you can use as gifts for friends.

They’ll give you a special bonus if you apply and get approved – $20 to be used at Amazon.com. Not bad. Of course, if they charge you a big fee to apply the $20 to Amazon won’t mean much, will it? I couldn’t find whether they do or don’t on the website. I’m afraid the fact that I couldn’t find anything saying there wasn’t a fee means there likely is one. I should probably give them the benefit of the doubt.

To Chase’s credit, they don’t charge an annual fee. Good for them.

The icing on the cake with this offer is you can get this card in a couple different colors: black, silver, or beach landscape. Sounds fancy right?

Chase Platinum Student MasterCard

This card offers some of the same benefits as the +1SM card. For example, they’ll give you a 0% introductory rate on purchases. The MasterCard has one up on the Visa – after the promotional period ends you could get a purchase rate as low as 16.24%.

Downsides? No rewards program at all. That’s a high price to pay for ‘platinum’ status.

They do have a cardmember benefits section:

• Travel Accident Insurance
• Purchase Assurance
• MasterRental® Insurance Coverage
• Master RoadAssist® Roadside Coverage
• Lost/Stolen Card Reporting
• MasterCard Global Service
• Travel Assistance Services
• Emergency Cash and Card Replacement
• Warranty Manager
• Baggage Delay

*Thanks to Chase.com for this list of benefits.

Another downside – no cool designs to choose from with this card. At least there isn’t an annual fee.

Guaranteed Student Credit Cards Applications

There are many offers out there for young college students to get credit cards. You need to be careful not to run into problems and understand what your obligations and potential results are with any credit company no matter how good their history is. A guaranteed student credit card is more often then not a secured credit card that is going to require some type of financial deposit. Usually it will be a deposit around the same price as the amount of credit that you are getting extended.

For many college and high school students it is all about building credit history. It is best to probably initially team up with a well known bank with a good background. Wells Fargo has a good plan as far as student accounts go and I am sure the same can be said for other national banks. There are options online, but I suggest that you are truly careful and I would recommend going to local banks or at least calling them to get an idea as far as fees, interest rates, initial deposits and other requirements that they will ask for.

Make sure if you are to go and apply for a card that you bring two forms of identification and also your social security number. This will make it a lot easier for you to fill out any forms. You will usually find bankers helpful for your initial credit card. If you do it online it might be good to have an adult that has a good long history with credit cards present. You want to make sure that your first experience is a good one. Especially if you want to build credit to buy a car or eventually a home.

Credit Card’s Application For College Students

Always be careful about your credit cards that you apply for as a college student. You might get a little riskier and want to start impressing people by using a companies money like it is your own. Listen to what I am about to say…don’t! Use your money and don’t spend what you don’t have. Use your credit card as an extension of your debit card. It is a simple process and it won’t create a lot of stress and bad habits. You want to start doing it right the first time.

Now you might get excited about things that you read like a low interest rate or a fixed interest rate. Well make sure to read the fine print. Go over your Terms and Conditions. You might see a place there where it says “Change in Terms”. This means really, “What you see is not eventually what you are probably going to get.” Read these terms because as long as the credit provider gives you a 15 day advanced notice, they can change the interest rates on you. This can be done potentially each month. If you miss on a payment or two then expect your rates to double or maybe even rise from 10% to 25%. That is not fun. So play it safe with your credit cards and pay them off often to avoid the crushing blow of low credit.

The Best College Student Credit Cards

Some of your best memories (or possibly worst) are probably from when your mom, dad, aunt, uncle or whoever it was gave you your first bike. Remember that? Even though you couldn’t really get hurt because you had those spectacular training wheels (not to mention the streamers hanging from the handle bars and the stability of the banana seat) which kept you from tipping over, you were still terrified.

Eventually the day came when you were ready take off the training wheels and go for it. You ate it a few times, probably picked up a couple skinned knees and elbows, but you made it. You think I can turn this trip down memory lane into a great financial analogy? You bet I can. I’m going to compare your training wheels to the best student credit cards.

Credit cards can be your best friend or you worst enemy – kind of like that first bike. Yeah it was speedy, great looking, and you looked cooler than ever on it. At the same time, if you hit that curb wrong or didn’t quite make it around the mailbox at the end of your driveway, you were dead.

Credit Cards can be one of the best financial tools to help you manage your life. They can act as a bookkeeper for you so you know where your money is going. They can help finance a business. They offer rewards programs that can get you cash, prizes, or (my favorite) free plane tickets. All this can be yours, but you have to handle them right.

College is a great time to start your life as a credit card owner. You still have relatively few expenses, but you can use your card to pay for food and gas, and going out with friends. All the while you’re building your credit score and credit history. You just have to be careful. There is such a thing as too much of a good thing.

Over the last couple of years credit card companies have been more and more aggressive about marketing to college kids. They’re extending credit cards to more people and giving the college students higher credit limits. That’s fine if they’re using them in the right way, but student credit cards with high limits can get a kid into trouble fast. Real fast.

So what are the best college student credit cards? They have a lot in common with other good credit cards. They offer reasonable rates, they have some kind of rewards plan, and they don’t have a bunch of fees. You may not be able to find all those good qualities in one card, but you should try to get as many of them as possible. Remember, you’re new to the game and sometimes you have to pay to play in the form of some fees and high interest rates.

Here’s my most important piece of advice: start with a low limit and don’t let them increase your limits until you know you can handle it. You’re probably going to mess up and max out your credit cards at least once in your life. Better to do it with a low limit than with a high limit.