by Joseph Kenny | 10/1/08

Selecting one's first credit card can be a confusing experience.  After all, there are so many credit card companies around that want a college student's business.  However, choosing the wrong credit card could have adverse consequences for a student for years, even decades to come.

There are some financial experts who even caution against a student obtaining a credit card.  They note that students often have limited income, and the temptation to overspend may be great.  As a result, students can end up in significant debt before they even graduate from college.

However, on the flip side, a credit card can be a wise way for a student to establish credit.  It can teach the student responsibility and smart money management strategies.  It also establishes a credit record that can be important when a college graduate tries to buy a car or a house.

Fortunately, students can often obtain a credit card with little difficulty.  Credit card issuers see the possibility of establishing a loyal customer base by cultivating student credit card users.  Credit card companies do not require students to have large incomes or long credit histories.  A student can also demonstrate creditworthiness through their payment history on student loans and through the state of their checking and savings accounts.

A number of credit card companies offer cards tailor-made for students.  The credit line tends to be low - in the $1,000 range.  The cards also offer rewards that appeal specifically to college students.

However, students should be aware of the fact that they may face high interest charges on their credit cards.  They may also have to grapple with late fees and other charges.  Therefore, they should, whenever possible, curb their enthusiasm for spending so that they can safeguard their credit records.  A student's general spending philosophy should be:  The less charged, the better.