A student credit card can be perplexing, but for some a necessary evil. In some instances, you don’t have to be a student to apply for one,and  in most cases, being a student doesn’t automatically qualify you for one. Student credit cards are designed for people ages 18 to 21 that have limited or no credit history. Understanding how these cards work will help you choose one that’s best for you.

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Before the Credit Card Act of 2009, college students were bombarded with T-shirts, beach towels and other trinkets to entice them to sign up for a credit card when they set foot on campus. The card act quickly got rid of that so now credit card issuers can’t market within 1,000 feet of campus. Along with that, applicants younger than 21 must prove their income or have a cosigner, such as a parent, on a credit card application.

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The most sure fire way to start with a good credit card limit, which is the amount you are able to spend on your card in one billing period, is by having a respectable income. For proof of income, credit card issuers might consider money you’ve earned from a part-time or full-time job, or money that is regularly deposited into your account by another person.

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A primary reason students consider getting a student credit card is to begin building their credit history. Companies that issue student credit cards expect that applicants will have little or no credit history and an average credit score. That means the annual percentage rate will be high, probably more than 20 percent. Companies need to manage their risk, and the lower your credit score, the greater risk you are to them.

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For a first time credit card user, you are likely get a low credit limit, probably around $500, which is the minimum credit limit for many credit card companies. In this way, lenders limit their risk if you default on your credit card bill.

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Paying your bill on time each month — preferably in full to avoid interest — can help you establish good credit and demonstrate to lenders that you can manage money responsibly. This in turn will affect your credit limit, increase your credit score, and overall create an improved and more manageable financial situation for you. While on the quest for a new card, here are some factors to consider when comparing student credit cards.

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A common beginner's mistake in not reading the fine print before applying for a credit card, and then often times ending up with an annual fee. A cardholder might pay an annual fee for a card that earns rewards or offers other perks. Despite a few exceptions, most student credit cards don’t offer rewards. Likewise, a good student credit card won’t have an annual fee.

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Although college students don’t travel much, some credit cards charge a foreign transaction fee which can sneak up on you while on a trip across the border. The charge is, on average, 3 percent of the transaction on purchases made in a foreign currency. So if you plan to study abroad or travel internationally (even an impromptu trip to the Niagara Falls), you’ll want to consider cards that don’t charge this pesky fee.

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Credit monitoring tools are also an important tool, and luckily many credit card companies offer free credit scores and monitoring. Take advantage of this feature, since it will help you track your progress toward a good credit score, and let you see areas for potential improvement. Some student credit cards may even offer cash bonuses for good grades. Others may reward you with a higher credit line once you’ve made several on-time payments.

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All of these small things really add up in the long run, and create an ideal financial environment for a young college student. Be sure to take a look at this guide when searching for the perfect credit card.