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College Students and Credit Cards.
When college students acquire their first credit cards, resisting the temptation to overspend can be difficult. Unfortunately, as a result many students find themselves dealing with financial problems right along with classes, exams, and other college activities.
 "College is when many students start managing their finances for the first time," says Suzanne Boas, president of Consumer Credit Counseling Service (CCCS). "We urge them to be careful about how many credit card offers they accept. At most, students only need one or two cards. More than that can add up to real financial trouble quickly."
To help students and their parents, use the following guide to establishing and maintaining a good credit history.
Design a financial plan
Carefully analyze your spending habits, create financial goals, and set spending priorities. Develop a budget accordingly. Items that you plan to charge should be included in your monthly budget.
Watch expenses carefully
Use cash instead of credit so as not to spend more money than you have available. If you must charge items, have a plan to pay off your balance within two months. Remember that when you pay interest charges on an item you wind up paying a lot more than the initial purchase price. Don't fall into the trap of thinking it will be easier to pay off balances in the future.
Establish a credit history
Almost all students can easily get credit. Once you obtain your first credit card, make minor purchases and pay your bills promptly. This shows you are a responsible credit user.
 Comparison shop for credit
You will be inundated with pre-approved credit applications. But scout around with several credit issuers for the best terms such as low interest rates and no annual fees. Evaluate how you will use credit. For instance, will you carry a balance? Or pay in full each month? Apply for the credit card that best fits your usage profile.
Check your credit report
A credit report is a record of your past financial transactions. An important part of using credit wisely is to annually review your credit reports. Checking your reports helps you spot errors and serves as a safeguard against credit fraud.
Be careful with your credit cards
Take common sense precautions to prevent credit fraud. Keep your credit cards in a secure place. Tear up your receipts, outdated bills, and any pre-approved offers you receive. Never let others use your cards. You are responsible for any charges made. Too many students get into trouble when their "friends" overspend on their accounts. Financial planning doesn't have to be all doom and gloom.
Common sense and goal-setting can put students in charge of their money and on a steady financial course.
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