As the new academic year nears, Bruins may be exploring financial independence for the first time, from learning how to manage a budget to building credit.

Those looking to build credit can choose from different credit card types that come with varying benefits, but students who have never owned a credit card before may prefer ones tailored to their age and experience. While student-friendly credit cards come with a number of benefits, students must also be cautious about misusing them.

Flexible approval requirements is one benefit of student credit cards. According to personal finance advisory source Bankrate, some student credit card applications don’t require proof of credit history and have lower income requirements than nonstudent ones. According to Forbes, alternate sources of income work instead, such as grants and scholarships, regular financial help from family members or savings from part-time jobs. These types of income, though not a steady salary, can be legally reported on credit card applications, according to the same source.

Student credit cards can also provide cash back offers, which can sometimes be specific to colleges. Jeff Smrcka, vice president of consumer lending at Wescom Credit Union, said in a written statement that the credit cards offered to UCLA students through Wescom have custom benefits for Bruins.

“For every dollar a Bruin student spends at the bookstore, on coffee, on food on campus, or on tickets to the next UCLA Athletics event, they’ll earn 5% cash back or five points redeemable for gift cards, travel, donations to UCLA non-profit causes, and more,” Smrcka said in the statement.

Beyond cash back and rewards points, other benefits can motivate students to get their own credit cards. Most importantly, students can build healthy financial planning habits that can be useful in the future.

Shawn Patt, a lecturer at the UCLA Anderson School of Management, said building credit is the main benefit of using a credit card.

“We live in a world where you need credit,” Patt said. “Having good credit makes everything cost less in life.”

According to financial education and news site Investopedia, credit is an agreement formed when a lender, often a financial institution such as a credit card company, allows a debtor to borrow money with the promise of repayment in the future. Credit is built over time when a debtor pays back the borrowed money in a timely manner. If the borrowed money is not paid back on time, it will accrue interest, putting the borrower into further debt and benefitting the lender with a greater promised return, according to Bankrate.

Continuing to pay back lenders through timely credit card payments can lead to a higher credit score, which provides evidence of a debtor’s financial health and discipline, according to credit bureau Equifax. Credit scores are three-digit numerical classifications calculated based on repayment history, number and length of credit cards owned and historical debt. Scores range from 300-850, with a score above 740 considered optimal, according to Investopedia.

A high credit score is important for future lenders who make the decision on whether to authorize home and car loans or for insurance companies who determine appropriate rates to charge. Having a high credit score can also help one qualify for lower-interest credit cards with more rewards, according to Investopedia.

Due to the long-term advantages of having a high credit score, many Bruins may also find their families encouraging them to open their own credit card and utilize it so they can reap its benefits. Mia Geiger, a rising second-year environmental science student, said her parents are proactive in helping her build credit.

“My mom and dad want to establish credit for me, so they’ll ask me to use it (credit card),” Geiger said. “Because I’m not making any huge purchases, they’ll use my debit [card] as a credit [card] to buy certain things and establish credit for me.”

With the benefits of credit cards available to college students, many Bruins may consider getting their first card before the beginning of the school year.

One option Bruins have is through Wescom Credit Union, which offers services catered toward UCLA students. The Credit Union offers two main options to students: the Wescom Bruin Choice Visa® Credit Card and the Wescom Share Secured MyRewards Credit Card.

Smrcka said in the written statement that the Wescom credit card application can be accessed online and completed in five minutes. To be eligible for a Wescom credit card, students must be over 18 years old and provide a valid form of identification, their social security number and proof of monthly income.

Outside of options through UCLA, students also have choices through major credit card companies. According to Forbes, Discover offers two options suitable for students: the Discover it® Student Cash Back and the Discover it® Student Chrome cards. Both cards have no annual fees and offer unlimited cash back matching or a refund on a small percentage of purchases over a certain amount, in the first year of owning the card.

Capital One and Bank of America also offer student credit cards. Capital One’s SavorOne Student Cash Rewards card offers rewards opportunities in spending categories that students are most likely to spend, such as groceries and entertainment. The Bank of America® Travel Rewards card is geared toward students that travel often. The card has no foreign transaction fees and allows students to earn points to redeem for travel purchases, such as flights or hotels.

While using a credit card as a student has benefits, it can have its pitfalls – especially for those who have never been financially independent before. According to CNBC, credit cards can be a way students quickly fall into thousands of dollars of debt. In addition to earning a low credit score which may hurt them in the long run, students may be required to pay late fees or other penalties as debt builds for unpaid credit card expenses, according to the same source.

Patt said students often underestimate how much their credit card debt can grow if left unpaid.

“What happens is students get into this mentality where, ‘I’ll pay it off in the future and I’ll be making more money down the road and then I’ll be able to pay it off,’ without really understanding how big your credit card balance is going to grow at a high interest rate when you’re making minimum payments,” Patt said.

Patt added that credit cards can be a valuable tool for students, but they should be aware of its potential misuse and resulting issues.

“I look at credit and loans almost like fire, where fire is what powers civilization,” Patt said. “Fire will power a city when used correctly, but if you use it incorrectly, it’ll burn the city down.”