Credit card issuers say most students handle credit responsibly. But issuers also are increasing their efforts to educate students about the wise use of credit. Many students just don't realize that the way they handle credit cards can affect their future plans. Students who are late paying bills or who default on them may have trouble getting an auto loan, renting an apartment or even getting a job. Bad credit also can push up auto insurance rates, says Larry Chiang, president of United College Marketing, which markets low-rate cards to college students through educational seminars.
Some parents sign their college-age children up for a secondary card on the parent's account.
That lets parents supervise the student's credit use, because they get the bill. But the student isn't building a credit record. Pay bills in full each month. If you can't, pay more than the minimum, to cut future finance charges. Pay your bills on time.