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The credit-card conundrum
FYI: Like bad cafeteria food and overpriced textbooks, credit card solicitations are the norm at many college campuses.
You are a credit-card marketer's dream. You're young, debt free and either bound for college or already enrolled. If you're 18 or older, you're also old enough (or nearly so) in most countries to legally accept a credit-card offer without parental permission. All these factors make you a credit-card magnet.
As such, major credit-card companies and local department stores will vie for the privilege of putting your name on one of their cards. If you're not careful, you can find yourself accepting some of their tantalizing offers and racking up more debt than you know what to do with. Many students overspend their credit cards and find themselves with a financial burden that neither they nor their families can afford.
That's the bad news.
The good news is that there are ways to avoid a credit-card crunch. Here are a few starter tips.
Stay focused
One of the primary purposes of a credit card is convenience. Your credit could help you to more conveniently handle large or emergency purchases, such as airline, bus or train tickets. Staying focused is a key to your credit success. Before applying for any credit card, carefully consider the major reasons why you want one. Once you are approved for a card and receive it, commit to using your new card only for the purpose intended. If you follow your own guidelines, chances are you won't accumulate more debt than you can handle.
By the way, if your parents have given you a credit card, it's a good idea to keep in mind the parameters they establish for its use. Know that your bad credit decisions could upset your parents’ current and future plans. After all, they have a dozen other financial responsibilities to manage. Be considerate and charge wisely.
Shop around
Carefully check out each solicitation you receive to determine which has the best (translation: lowest) annual percentage rate (APR) and annual fee. By doing so, you will reduce the amount of money you have to pay monthly and/or yearly.
Opt for less
If given a choice, choose a card with a smallish credit limit—say, $300. A lower-limit card provides some spending flexibility and can protect you from debt overload.
Pay your bills on time, every time
There's no two ways about it. A credit card is not “free” money. Each month, you will receive a statement detailing your purchases, outstanding balance and the minimum amount you must pay that month. Charge more? Pay more. If you charge less, you’ll pay less. Whatever the amount, endeavor to pay your bill on time, every month. This helps you establish a good credit history. It also provides a foundation for you to faithfully handle other monthly bills, such as rent and utilities.
Know your limit
If you hang out with friends who have more ready cash than you do, you may be tempted to charge your way through college. Don't! Instead, budget wisely and don't allow peer pressure to “force” you to max out your cards.
Protect your assets
Credit-card theft is easier than you think. Once someone steals your card, there’s no limit to the thief’s spending. While you ultimately may not be responsible for the charges, it could be a major headache to get the situation resolved. Avoid the hassle. Don't keep your credit card hanging around your dorm room or book bag. Don't let your friends borrow your card, either.
Use cash
As often as possible, use cash or a debit card for grocery shopping, eating out and the other 101 must-have purchases that crop up each month. Sticking to cash will help you to better identify your spending habits.
Don’t get greedy
Once you successfully manage your first credit card, expect to get many more offers or even an increased spending limit. But don’t collect lots of different cards, and refuse any limit increases that exceed your ability to comfortably repay.
Talk with your parents
I put this last so you wouldn't tune out and miss the important tips here. But really, this should be a top priority. If you're interested in signing up for any card, seek your parents’ advice and guidance. Talk with them concerning your reasons for wanting a card and how you plan to pay the bills. Even if they don't approve and you still elect to get a credit card, you will have at least shared with them your decision.
Lisa A. Crayton is a money columnist and free-lance writer. E-mail [email protected] to tell us the money issues about which you’d like to learn more! Article provided by 
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