Student Credit Cards can bring a range of benefits, very low interest rates for short term periods, a lower APR than standard cards, free vouchers, no annual fee, access to cash machines, or the opportunity to sign up for on line banking. Most of the major high street banks provide a dedicated student credit card, either Visa or Mastercard. Most, however, do expect you to bank with them in order to benefit from the lower rates.

There are several benefits of signing up to a student credit card:

The APR of student credit cards is typically around 18%. See our student credit card best buy table for current APRs being offered. In addition some of the cards provide 0% APR on purchases for the first three months with no annual fee. Others, such as the Student Barclaycard, give you free £30 vouchers to spend at Waterstone's or HMV, which will be sent to you as soon as you start using the card, plus 15% savings on Waterstone's & HMV vouchers all year round. Plus all cards provide a reasonable credit limit, with regular reviews.

Some student credit cards also come with a full range of card benefits including free online account management, free extended warranty, free price promise and free purchase cover. With some student credit cards you will also benefit from up to 8 weeks interest free credit when your account is paid in full and on time.

You will need several details to hand before applying for a student credit card such as your banking details and proof of address for the past 3 years.

There are many advantages of signing up to a student credit card:

• Enables you to buy what you need, books, etc now, and pay back when you have the money
• More convenient for some reservations and purchases such as flight tickets, hotels, or large purchases.
• Safer than carrying cash.
• May be useful for emergencies such as car repair etc
• May provide benefits such as purchase protection and travel insurance
• Helps establish a credit history.

There may be disadvantages to gaining a credit card:

• Interest over a period of time may be high, particularly if you only pay back the minimum amount per month
• Being able to spend money you do not yet have presents temptation to spend above your means
• You could affect your credit history if you do not pay at least the minimum amount on time. This could affect future applications for mortgages, loans or other credit related applications.
• The expense of paying interest may outweigh the benefits such as purchase protection, travel insurance, frequent flier miles, cash back bonuses
• The credit limit of your card may provide a false sense of security, possibly thinking of this as emergency "savings" or a source of income.

A low interest rate (APR), is one of the most important factors for a credit card, if you are likely to carry a balance from month to month. Beware of low "teaser" rates that will increase after an introductory period. Always know when your rate will increase and what it will increase to. Also, be aware that the rate for cash advances is usually higher than the rate for purchases.

Your credit history is essentially your financial "reputation." Lenders use information on how you have handled your financial obligations in the past when determining whether to approve or deny a credit application. In addition to helping lenders determine if you are "creditworthy," your credit report can be reviewed by any company or individual with a "legitimate business need."