College graduation often means one thing – credit card offers to accompany that newly minted degree. Even the college newbies now receive credit card offers in today’s competitive financial environment. The co-ed has been cross-checked and triangulated by Big Data, who then sells that info in bulk to thirsty credit card companies looking to replenish aging baby boomers with a fresh crop of decades-long fee generators. The opportunity salivations that occur! Offers for each of my three co-eds from one credit card company were stuffed into my mailbox on the same day. The large print says the membership fee is $0 for the first year but the fine print says after that, the annual “membership” fee is $195. The tagline on the glossy brochure says “the journey never stops”. Is that from Dr. Seuss’ Oh, The Places You’ll Go mentioned in the commencement speech?

The particular credit card offer my children received was for a rewards type of credit card. Rewards credit cards are based upon a the-more-you-spend-the-more-you-get philosophy. In theory, understanding and utilizing the reward system is supposed to net the user with rewards greater than the annual fee. In practice, should a co-ed invest time understanding the fuzzy math of a credit card company’s specific reward system? Better to begin credit card usage with a simple, straight-forward product with less shiny expensive packaging. Walk, then run. This first credit card is going to be used by your college self, not your future high-flying Wall Street self. Match the credit card to your current circumstance.

These are TheMoneySkinny credit card recommendations for college students and first-time credit card users:

• No annual fee – ever.
• Low late payment penalty fees.
• Low Annual Percentage Rate (APR) financing fees.
• A straight-forward cash back on purchases reward system is a plus.

There are many websites that evaluate and compare credit card products. After two to three years of experience with this type of entry level credit card, if you’d like to transition into a more complicated rewards system credit card – knock yourself out. If late payments and penalty fees are prevalent, adding an annual fee on top of those fees is doubling down on not-good.

The first credit card I had was issued by the department store where I worked in college. It had a low friction payment point. I could pay the bill while on the job retail-associating. I initiated opening the account. They didn’t chase me on a non-stop journey. Perhaps they may have chased me if I’d been delinquent with a payment but instead we had a peaceful, almost non-existent relationship for many years. That brings up one final point on credit cards. Another change in today’s environment is the personalization of products and services. A credit card is a debt instrument, not membership in a club. The issuing financial institution is not the consumer’s friend or journey guide. Selecting an initial credit card should be based upon minimizing fees and finding the best product that matches one’s needs, not on unsolicited glossy offerings.

• College students are prime targets for credit card companies.
• Begin credit card usage with a simple, straight-forward product.
• TheMoneySkinny recommends no annual fees, low late payment penalty and APR fees. Cash back on purchases is a plus.
• Selecting an initial credit card should be based upon minimizing fees and finding the best product that matches one’s needs, not on unsolicited glossy offerings.