What to Watch For in College Credit Cards

College credit cards can be a valuable tool for students to build up an adequate credit history. However, without a sound understanding of how credit cards work, or about how to maintain personal financial responsibility, students could find themselves getting into a great deal of debt. By paying attention to the fine print on credit card applications, particularly the expiration date for introductory APRs, young people can make the best use of credit cards for college students while avoiding the worst.

If you've recently started college, you may not have given much thought yet to building up an adequate credit history, or to avoiding a bad one. But you should. Credit history is absolutely vital for some of the most important purchases you'll need to make in life. Without good credit, you'll find it difficult to buy a house, be approved for any kind of loan, or even become employed. So before applying for any college student credit cards, first make sure that you have some sound financial principles and an awareness of your college credit card options firmly in mind, in order to make the best of your credit card and avoid the worst.

Credit cards for college students are marketed to appeal to student interests. College credit cards typically come in a variety of styles and school-specific designs in order to give you the idea that you're "personalizing" your college credit card. Even if you look beyond the appeals to school spirit and a sense of community, you probably still won't see anything too out of place. College student credit cards often come with a 0% introductory APR rate, some cash back options, "points" systems, and even rewards in the form of gift certificates or discounts for retailers targeting the 18-25 year old demographic. Retailing categories are commonly video rental stores, concert promoters, delivery services and restaurants, among others. All of this makes college student credit cards sound fairly irresistible, until you take a closer look at the fine print.

Remember, that 0% introductory APR is just that -- introductory. After a six-month period, the APR more often than not rockets up to anywhere from 17-18%, among the highest rates available on top-ranked credit cards. It's very easy in six months (and especially on a limited college budget) to become used to letting your credit card debts slide a bit. After all, a college credit card is there for you when you don't have other money handy, right? But many times young people often find to find that their steadily increasing debt rather is rapidly becoming unaffordable. Add that to the general problem of typically low income, student loans, as well as regular, unavoidable cash needs in the form of textbooks, dorm and cafeteria fees. And let's not forget about a social life! You can begin to see the problem with unwise use of credit cards for college students.

This is not to say that college student credit cards are necessarily bad things. Handled properly and in conjunction with an otherwise good academic performance, a college credit card can be a valuable asset to you in the future. A college credit card can provide proof in the event of a credit or employment check that you're financially responsible and worthy of being trusted with the loan you might need in order to buy a house or a car a few years down the line.

And, as long as you do the research, there's no reason not to take advantage of some of the rewards programs college credit cards offer, or even to show a little school spirit with your credit card design. But the cardinal rule here is to show financial responsibility. Draw up a budget and stick to it. Even if it means scaling back on a few planned purchases or some trips to local clubs, it's better to go without a little bit of pleasure now rather than face heavy APRs and overwhelming debts later.

And, let's be frank ... if you're too worried about your ability to stick to a budget, consider waiting a few years before applying for a college student credit card. Credit cards aren't going anywhere, and you'll be able to find many of the same great offers later, once you have the financial wherewithal to deal with some of the hidden pitfalls.