Student credit card offers seem to be everywhere, especially if you're on a college campus.  Some credit card companies actually target campuses; setting up little booths and giving away free stuff in exchange for your signature on the dotted line of the credit card application.  While some people will tell you to steer clear of all credit cards, all the time. The fact is, you can have a credit card and make it work for you instead of against you.

The trick is to choose a credit card with the best interest rate you can get; and to select a card with a rewards program that will actually benefit you over the long term.  Be careful of rewards programs that sound really good but actually end up costing you more for the "reward" than the reward is worth! 

With hundreds (if not thousands) of credit cards to choose from, and many of them targeted directly to the college-age group, how can you choose a card that benefits you rather than helping you major in credit card debt?

Is a Rewards Program Right for You?

Many student credit cards offer rewards programs.  Typical offers might include airline miles, cash back, discounts or free merchandise based on your card use.  Some rewards programs don't really reward the card user at all; and in fact, you may end up paying more for the program than you would for a credit card without the reward program!  Confusing, I know. 

As a student, if you find yourself flying home two or three times each year-- a credit card with a frequent flier program of some type might be beneficial to you, especially if you can build up your miles and then redeem them for free flights.  Just keep an eye on cards that offer these rewards in exchange for a high annual fee-- often times, you pay several years of annual fees before you would earn a free flight in miles-- and you end up paying more for the flight than if you just purchased it yourself.

What Will You Use the Card For?

Hopefully your goal for having a credit card is to improve or build your credit score.  Often, as college students, you're given the first opportunity to establish your credit history.  Be careful not to blow it by racking up high credit card bills that you can't pay, as that's the quickest way into a downward debt spiral that will haunt you well after you have graduated college.

If you plan to use the credit card for one or two small purchases each month (and then to pay them off in full when the statement comes!), you probably don't need a card with any extra bells and whistles and a rewards program is not likely to be all that rewarding for you.  If the card offers a rewards program without an annual fee, it doesn't hurt to get one. But keep in mind you may never qualify for much in terms of "rewards" as long as you are making small purchases and paying them off immediately.  What you will receive though, is a stellar credit rating that will be your best friend once you've graduated college and need to get higher priced items-- such as a home, new vehicle, or sadly -- even when you apply for employment.  Many employers also use your credit rating as a way to determine your worthiness on the job!

While there is no need to be afraid of credit cards, or to avoid them all together, it is very important that you use a credit card to your advantage by selecting one with the lowest rates that you qualify for, and then using it responsibly to avoid a degree in credit card debt.  Having a credit card handy for emergencies or to establish your credit is a benefit that is well worth the effort.

Debbie Dragon writes about responsible use and selection of student credit cards for CreditorWeb.com.