While they used to be more popular, it is still possible to find a student credit card with a decent interest rate. These cards allow students with very little income to establish a credit history while being limited enough that a student cannot rack up thousands of dollars worth of debt that he or she cannot repay. They typically have a low credit limit, require a co-signer, and low to mid-range APRs.
These cards are designed to be a high school or college student’s first credit card. Because they are usually issued to people with low income and short to non-existent credit histories, they come with a lot of restrictions. Their main advantages are that they allow a student to build a credit history and give him or her the ability to access a small amount of credit for emergencies.
In exchange for this, a lot of these cards require the student to have a co-signer. This is a person who agrees to make payments on the card in the event that a student cannot make payments. If a student is able to show some income, however, it is possible to get a student credit card with a very small credit limit.
The interest rates on these cards tend not to be the highest or lowest rates available on the market. Because they go to people who have virtually no credit history, these people rarely qualify for the best rates. This lack of credit history, however, also means that they do not have to pay the highest or penalty rates, either.