Your first credit card is very important now. This is because it is hard to apply for any loans without a credit score. Establishing good credit early is key to affording other things down the road. Applying for your first credit card has never been easier for college students. Learn your options before you apply and what available rates are.

How to apply

Applying for a new credit card is easy. Most credit card companies will throw several application forms your way directly out of high school. These types of cards keep their customers on a tight leash. Beware if you mess up you could be paying interest up to 20%! Be watching for the best options. Nearly 2/3 of college students have a credit card. Credit card companies are now turning their attention toward college students. This is because they understand that students will have the opportunity to create a positive credit score for themselves.

Interest Rates

Be very wary of interest rates when applying for a new credit card. Many first time applications will have high interest rates. This is because credit companies are covering their backs. If they see you as a high risk investment then they will charge more interest. Most applications for college students will run up to 18%-19%. Watch out for bad deals. Remember that you have the opportunity to find the lowest rates.

Incentives

Incentives can be very tempting. When you are applying for your first credit card you wont find many incentives in your card, but as you begin to earn a credit score your incentives will increase. Gather as much info as you can about the incentives. Sometimes there will be catches and higher interest rates.

When applying for a new credit card know your limits. Be sure to know what your card offers you as well. Understand that you have the power to decide what card and rates you want. You don’t have to settle for a particular card. Look around carefully for what is available.