Wells Fargo Cash Back College Card

This no-frills, easy to understand card is an excellent way for young people to establish their credit history with a bank known for creating long-term relationships with its customers, which should pay dividends later on. It also has a good rewards program.

• College students.

Credit Rating Required: Fair and up (660+)

Pros

• Cash back rewards.
• Relatively low interest rates.
• Easy to understand program.
• Tips on good credit behavior.

Cons

• You may need an adult co-signer if you don't have the income or credit rating to qualify.

Rewards

• 1 percent cash back on spending; additional 0.25 percent on check card spending (optional).

APRs

• 7.9 percent to 13.9 percent for first six months on purchases and balance transfers.
• 13.15 percent to 20.15 percent after introductory period.
• Penalty interest rate: 27.24 percent.

Fees

• No annual fee.
• Balance transfer fee: 3 percent of balance.
• Late payment fee: $20 to $39.
• Returned check fee: $39.

The Wells Fargo Cash Back College Card lacks the bells and whistles of other student credit cards - notably those offered by Citigroup. But this is an excellent first credit card for young people and not a bad deal, either.

The offer is simple to understand: a full one percent cash back on spending. That might not be as rich as the rewards the Citi cards promise, but it's better than what many other cash-back cards offer. You can also add your debit card to the account and get 0.25 percent cash back when you use that card to make purchases.

You can redeem rewards earned with your Wells Fargo Cash Back College Card online or by phone when you earn at least $25, which is about average for the industry. Rewards are deposited in your bank account, credited to your card statement, or sent to you by check.

Interest rates are fairly reasonable, especially if you already have good credit.

Wells Fargo is a good bank to establish a relationship with early on in your financial life. The bank has long prided itself on how many products - savings and checking accounts, loans, investments - it has with each of its customers, which is one of the highest rates in the banking industry. Customers are clearly satisfied. Assuming you do well with this card, it should be a lot easier to get an auto loan, a mortgage, or other financial products later on.

This card even offers an online "Student Credit Education" course on its website.

I highly recommend the Wells Fargo Cash Back College Card for young people. It's a great start for creating a solid credit history that will benefit you the rest of your life.

Having said that, young users should concentrate on learning good credit behavior - paying bills on time and in full - rather than trying to earn points for spending.