Getting a student credit card while in college is the first step to start building your credit history. Credit card companies offer some sort of incentives on campus when you apply – such free t-shirts and mugs. And most of the student credit cards now carry cash back or reward points programs. Since these cards are targeting college students and they are easy to qualify. Credit lines are usually low since most students are not yet working, but many offer 0 or low introductory APRs for purchases.

Some card issuers offer $25 cash back when you sign up and make your first purchase within 3 month. Although that’s not a huge amount compared to $100 to $200 cash back you will earn on cards that require excellent credit, this can pay for some of your school supplies (or party supplies depending on how you use it). Just charge everything from meal, books, and computers. Just be careful that your credit line can really limit your purchase. If you do need to buy more stuff, call the credit card company and request a credit increase. They are usually generous enough to bump up the credit line to $1000 – good for 2 iPads or a couple of iPhones for now. To help to encourage you to pay your bill on time, some card issuers like Capital One offers 25% bonus on cash back you already earn each month.

Don’t let the freebie lure you into applying for more cards than you really need. Sure at the beginning of every semester you might feel you need to buy a lot of stuff, let your parents take care of the essentials first – like new laptops or TV. You should use the student credit card to buy textbooks and other school supplies. One card should be sufficient to handle all these. If you have enough credit, you can pay your tuition bills and meal plans with these credit cards and start building your A+ credit.

Although the standard APR is generally lower than other creditcards you should always pay off the entire balance on time each month. Having a credit card doesn’t mean you can spend on whatever item you want. Learn to be responsible for your purchase. If you can’t afford buying a new computer just don’t purchase it even though your credit line is can cover the price. Remember you still have to pay off the bill at the end of the month or billing cycle. Leaving a balance on will incur unnecessary financial charges that will eventually add up to more than your original purchase price.

One question many students ask – when should I cancel my college student credit card? You don’t. It’s really the same credit card as others. They are just made for students when you are still in school. Once you graduate – somehow the card issuers know or predict based on your original application, they will send you an upgraded card that offer even more benefits and certainly a higher credit line based on your income. There is nothing you need to do unless you have a particular you really like to upgrade to.