Final answer:
When a full-time student gets their first credit card, they can generally expect a higher APR on outstanding balances due to their limited or no credit history. While some offers may start with a lower APR, they are normally temporary and will increase after the promotional period.
Step-by-step explanation:
If you get your first credit card while you're a full-time student, you can expect that the card's APR on outstanding balances will probably be high. Credit card issuers consider various risk factors when determining APR, and students generally have limited or no credit history, which makes them higher-risk borrowers. As a result, credit card companies will often set a higher APR to offset this risk.
Statistics have shown that a typical credit card interest rate ranges from 12% to 18% per year, but first-time cardholders, especially students, may face rates at the higher end of this range or even more. While some student credit cards come with introductory offers of a lower APR, these promotions are usually temporary. After the promotional period, the APR will likely increase, sometimes significantly.
It is also important to be aware that student credit cards may have lower credit limits and could come with additional fees, like annual fees or late payment fees, all of which can add to the cost of credit.