Are College Student Credit Cards a Nightmare Waiting to Happen?

If you have ever set foot on a college campus, you know that applications for college student credit cards can be found around every corner. In fact, the sheer abundance of them leads many students to believe that these cards are a normal, everyday part of student life. Before you go jumping onto the plastic bandwagon, however, there are a few things you need to consider...

They're Not Your Friends

The companies offering college student credit cards are not your friends, and they're definitely not your guidance counselor. Remember, any advice given by these companies or any information distributed by them will be provided with a slant.

These companies have one goal in mind -- and that's making money. The more money they make off of you, the better. Sure, they want you to be a responsible card holder and they want you to pay your bills on time, but they also want you to rack up debt so you can pay interest over the years. You need to keep that in mind when considering any student credit card offers.

You Have To Pay Them Now

Unlike your student loans, you have to pay your college student credit cards off while you're in school. Student loans don't kick in till after you leave school. Student credit cards kick in immediately.

Unless you can swing a job as well as your studies (or mom and dad are willing to foot the bill) you need to be very careful what you pay for with credit. Those small charges can add up quickly, and they can actually put you in financial ruin before your financial future has even started.

The Upside

So, does that mean college student credit cards are all doom and gloom? No, absolutely not. It's just a matter of handling them responsibly.

A student credit card can be a great way to secure your credit rating before actually going out on your own. If you manage your cards responsibly, you can have good credit right out of school and getting a car and/or apartment won't be as much of an issue for you as it is for some students.

Just remember, the moment that credit card is in your hand you become responsible for your financial well being. Don't blow it. As they say, with great power comes great responsibility and college student credit cards are powerful (and potentially dangerous) tools.