Now that you are a college student, credit card companies are going to court you with a passion you only wish you could see from prospective boyfriends or girlfriends. To a credit card company, you are their dream date: young, with a clean credit report and (they hope) no understanding at all of how credit cards work. They expect you to accept a credit card with an attractively low introductory rate, run up huge bills, then owe them tons of cash when the introductory period ends and your interest rate skyrockets. Lets disappoint them.
The first tip is to ignore the huge, sparkly "0 percent interest" printed in bright red and gold letters on the front of the brochure. That is the introductory rate. After a short period, usually just six months, it ends, and now you have to pay the credit cards real interest rate. Student credit cards typically have somewhat higher rates, currently running from about 13 percent to about 20 percent, with default rates that shoot up to about 25 to 31 percent if you pay a bill even a day late. This change in interest rate is retroactive, meaning that even if you bought something when your interest rate was 0 percent, you will have to pay 13 percent (or 20 percent, or 31 percent) on it until your balance is paid off. If you let your interest compound, you can wind up paying two or three times as much as the original sticker price.
The key to disappointing a credit card company and keeping your wallet fat is to get the card with the lowest regular interest rate, then watch your spending as though you were already paying the full regular rate on your purchases. The fine print or the chart on the back of the form will tell you a credit cards real interest rate. Look for the standard cash advance annual percentage rate (APR) and the standard purchase APR. These are the rates you will really pay. Compare all the student credit card offers you have received, paying no attention to the introductory rates and all the frequent flyer miles or other frills. The only numbers you care about at this stage are the standard purchase APR and the standard cash advance APR.
Once you have found the credit cards with the lowest regular interest rates, read the rest of the fine print for catches like annual fees and high default interest rates, and use it to narrow your selection. Now that you have a few likely offers with low interest rates and no nasty surprises, you are free to consider rewards packages and pick the student credit card you like best. Have fun with your new credit card and start laying the groundwork for your future credit... on your terms. Related sites Credit cards .

About the Author

More topics related to student credit cards, goto securedcreditcards.learnbob.com/?Use-Credit-Cards-Responsibly&p=4300.