Credit history is the first thing any bank will look for while considering a credit card application. And you don't have any such history when you apply for your first card. There is no need to worry. Go by the following steps:
1. Check your credit report - This is just a formality, but you should do it. As a student, you may not have anything in your credit report. However it is good to check it out so that if it contains any errors, you can clean them up before applying for your first credit card.
2. Ensure that you have both checking and savings accounts with your bank. Most of the card issuers take it as a sign of good finance management. And this helps in faster processing of your application.
3. Approach to your bank - The first place from where you should expect your first card is your bank. If you have a job and no credit problems, your bank should consider your application, perhaps with a lower limit. You should never ask for a particular credit limit, let the bank decide it. You should promptly accept the limits sanctioned by the bank. Please do not apply to many banks. Their refusals will harm your credit report.
4. Study carefully the terms and conditions - You need to look at the fees which you will be subject to. There may be annual fees, joining fees, late payment fees and fees for cash advances. You should not go for a card which will charge you joining fee. Also, you may not be required to pay late payment charges or charges for cash advance but it is important to know about them in advance. You may not be able to switch to another card quickly.
5. What to do if you are still refused - If you are refused by your bank, then you need to make efforts to create some credit history. This is a possible by applying to a nearby department store or a supermarket or a gas station for their secured credit card. The interest rates may be slightly higher, but it may not be important for you as you will always try to pay their entire balance on or before the due date. If you pay their dues on time, you can re-apply to your bank after a few months.
