If you’re a student, you’ve probably run in to the famous credit catch-22.  In order to get a credit card, you have to have a credit history.  And in order to build a credit history you have to have a credit card.  How do you solve this dilemma?  The answer may be in special credit cards for students.

Where can I find credit cards for students?

In many cases, offers for special credit cards for students will come to you — from your college bookstore, from your part-time job or even in the mail.  Credit card issuers see great potential in the student market.  They welcome the idea of building a relationship with consumers and students tend to be a good long term risk in the credit market.

Another option for finding viable options is a site like Card Offers.com.  Here you can review options and specials from a variety of vendors, specifically for the student market.

What can I expect?

Credit cards for students generally operate similarly to regular credit cards.  However, you may find that you will have a slightly higher long-term interest rate as well as a significantly lower credit limit.  This is because many students have both a limited credit history as well as limited income.  High interest rates and lower limits help the bank issuing the card reduce their risk.

How can I improve my chances of getting a student card?

While the banks that issue credit cards for students do understand the unique student market, they are still looking for customers that will make payments on time and not default.  How can you demonstrate that you’re a good risk?  Here are some ideas:

- Consider starting out with a prepaid or secured credit card:  These products require you to set aside a certain amount of money with the bank issuing the card.  Your credit limit will be no more than the amount you’ve set aside.  This approach gives you access to the convenience of credit while ensuring that the bank will not be left holding the bag if you default.  It’s also a great way to build a positive credit history, but only if you make payments on time.

- Look into a revolving line of credit:  If you are considering buying anything from a school ring to a car, ask if you can make the purchase through a revolving credit line.  If a credit line is available, make sure that the organization reports your timely payments to one of the three main credit bureaus.  This information will be utilized to build your credit score.

- Consider credit cards from local stores:  Many chain department stores offer store credit cards with small limits and high interest rates.  While those terms don’t sound too exciting at first, if used correctly they can be a great way to start developing a positive credit history.

What can I do to utilize credit cards for students wisely?

If you’re just getting started in the credit world, you can easily get carried away.  Whatever you do, don’t let a few years of unwise spending during or right after school ruin your credit history for years to come.  When you get that first credit card, think of it as a very short-term (i.e., monthly) loan.  Essentially, credit cards for students should not be seen as a license to purchase anything you want up to the credit limit.  Instead, think of plastic as a convenient way to carry around you existing cash.  Never spend more than you can pay at the end of the month.